BlackRock: Long-term high interest rates could hit Bitcoin prices and the cryptocurrency market
The largest issuer of Bitcoin ETF, BlackRock, has issued a warning that an unprecedented situation is occurring that may hit Bitcoin prices and the cryptocurrency market. BlackRock analysts said that central banks around the world are forced to keep interest rates higher than pre-pandemic levels to deal with persistent inflationary pressures. Due to supply constraints, the characteristics of the new macroeconomic system are rising inflation rates, rising interest rates, and slowing growth, and this chaotic situation will persist for a long time.
Earlier this month, US Treasury Secretary Yellen pointed out that the Fed will keep interest rates at a high level for a long time, which has increased the difficulty for the US Treasury Department to control the deficit and interest payments, and may lead to the collapse of Bitcoin and other cryptocurrencies. The trend of Bitcoin prices directly reflects the market's attitude towards this warning. Since reaching today's high of $71,907 on June 7, the price of Bitcoin has fallen by about 10%.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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