According to Wall Street investor John Haar, legacy investors do not understand Bitcoin nor the history and fundamentals of finance.
Over the past 24 hours, Bitcoin has seen a massive 10.7% pump. This bullish move comes just after the announcement of a 75 basis point interest rate increase in the United States. At the time of writing, Bitcoin is looking at a $23,821.67 USD price, after sitting just above $20,900 USD in the past few days of trading.
Bitcoin is not the only cryptocurrency in the market to enjoy a bullish rally. After the news of another interest rate increase, other leading altcoins saw a surge too. In the past 24 hours, Ethereum gained 13.4%, Binance Coin saw a gain of 7.1%, Polygon has increased by 14.% and Ethereum Classic has seen a whopping 71.7% increase.
Mati Greenspan, CEO of Quantum Economics and expert trading analyst in the industry, took to Twitter to suggest (in jest perhaps but not necessarily far off) that the interest rate might be bullish for the industry:
Bullish rate hike. 🤔
— Mati Greenspan (@MatiGreenspan) July 27, 2022
Interest rates in the market and the impact on investors
Part of the Federal Reserve’s plans to reduce the rise of inflation is in the increase of interest rates. This commonly reduces the investor interest in general, especially with risk-on assets like cryptocurrencies.
However, this bullish movement after the news indicates otherwise and there are both critics and bulls that are wondering whether this pump will be enough to change the trajectory of the trading market, or whether a strong bearish correction is in place. Crypto analyst CryptoCap weighed in, saying that the market taking new lows as a result of a dump is likely:
Don’t you see that price is just ranging between 19k and 23k during a downtrend and with no signs of accumulation?
If you want to buy here, go ahead. Then don’t regret it and cry if the market makes new lows, which is likely.
I’m not buying.
— il Capo Of Crypto (@CryptoCapo_) July 27, 2022