Interest Rate Hikes Won't Affect the Cryptocurrency Bull Market; The 2021 Bull Market Rose in a High-Interest Environment

Jiang Zhuoer, the founder of the LiBit mining pool, analyzed the impact of interest rate hikes on the cryptocurrency bull market and believes the effect is minimal. He pointed out that the growth of the crypto sector and the influence of its inherent cycles far outweigh the impact of interest rate hikes. Historical data shows that the bull markets of 2013 and 2021 both rose during periods of interest rate hikes or high interest rates, especially the 2021 bull market, which faced the dual impact of high interest rates and quantitative tightening. Jiang Zhuoer believes that the reason the crypto sector can ignore adverse factors is due to its high growth potential, with bull market gains exceeding tenfold, regardless of whether interest rates are 3% or 5%. Additionally, the total market capitalization of cryptocurrencies is only a fraction of that of U.S. stocks, and the diversion of new funds from U.S. stocks has a greater impact than the Federal Reserve's quantitative tightening.

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