February 14, 2022

Crypto investors are bracing for more uncertainty as potential Federal Reserve could further affect the value of cryptocurrencies.

Dealt enough blow as a result of crypto’s high volatility, a more aggressive decision will lead to interest-rate hikes that are likely to be up to seven times higher.

Also, many investors believe that an aggressive central bank decision will affect risky assets, making it difficult for some traders to maintain their bullish outlook on bitcoin and other cryptocurrencies.

Investors believe escalating tensions in Ukraine could trigger broad market movements.

According to Ed Moya, senior analyst at Oanda, bitcoin has “really become the ultimate momentum trade and there are so many risks that can trigger a 40% drop out of nowhere.”

Despite the uncertainties and tighter monetary policy, some investors will bet on the volatility of bitcoin.

For them, the long-term value promise of blockchain technology, the built-in supply limit and the resulting network effect will endure despite constant price fluctuations.

For more information, read the original story in Reuters.