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Fed, SEC to Squeeze, But Bitcoin ETFs to Keep Cryptos Buoyed

The long-standing hit to cryptos from higher interest rates is coming closer to an end, even as the Federal Reserve is set to hike again this week. That and the US SEC's decision to accept Bitcoin ETF applications from six firms helped boost crypto investors' sentiment.

Photo by Jievani Weerasinghe / Unsplash

The whiplash in the crypto market seems to be the current norm, but this week's decisions from major central banks and what they say on the future path of rates will dictate the trading patterns for digital assets in the near term.

"Clearly, the digital assets market is extremely volatile at the moment on daily news flow, giving opposing bets on cryptos the ammunition to do so," said a chief investment officer at a large asset management firm in Boston.

"While BlackRock's crypto bet has everyone sitting up and taking notice, the US regulatory crackdown is keeping investors nervous," added the CIO.

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