Analyst Nicholas Merten: Crypto Market Will Survive Interest Rate Hikes
According to a prominent crypto analyst Nicholas Merten, the interest rate rises are not likely to kill Bitcoin (BTC) and the wider crypto market.
Merten in a recent video update shared with the 506K subscribers to DataDash YouTube channel that increased interest rates might potentially create sell pressure on the short-term, but it’s not likely that they will keep crypto down for longer time-frame.
The analyst refers to 2015 when the Federal Reserve hiked interest rates, but Bitcoin still managed to surge from below $500 to almost breaking $20,000 for the first time in 2018.
“Well, as we go across time on any given chart, this [BTC $500] is when the Fed started to increase interest rates. And this [BTC $11,000] is when the fed stopped increasing interest rates.
Certainly, there was a bear market, in between, for crypto, for sure.
But Bitcoin, during that period of time, went from around $477 all the way up to $11,000. And, if we’re really considering the peak price potential that it had during that period of time, it went all the way up to $20,000 practically.
So Bitcoin did a 40x in market cap from about $500 to $20,000 during that period of time. And it’s still, by the time the Fed started lowering interest rates and reversing the trend, was sitting around $11-$12,000, give or take.”
Contrary to many fellow analysts, Merten believes that the current interest rate rises don’t necessarily mean “doomsday” for the crypto market.
It doesn’t sound like it killed Bitcoin by any degree, and not to mention, Bitcoin was a much smaller and more fragile market at that time.
Again, some people may beg to differ and say that being a smaller market, it didn’t really get impacted, and stuff had more growth potential.
That’s a very fair point as well. But we can obviously see that this isn’t some doomsday scenario that killed crypto as an asset class, nor did it dramatically affect equities. Equities have their typical pullbacks, just like how any crypto asset does. But it continued to charter the new all-time highs.”
At the time of writing, Bitcoin is trading at $38,463, up 4% on the daily chart.
