Bitcoin plunges again into the 2022 scenario after the latest Fed twist
The crypto market is returning to a scenario recently seen during the prior monetary tightening cycle. After the first rate hike by the U.S. Federal Reserve in more than three years, bitcoin is evolving in a setup that recalls 2022. Back then, its pullback preceded the March decision, followed by a temporary rebound and then another drop. This comparison is still limited by the market’s maturity. The coming weeks will show whether this historical parallel continues to hold a clear pattern.
The Fed raised its rates by 25 basis points, bringing its range to 3.75%–4.00%.
Bitcoin’s current pullback shows several similarities to the period preceding the March 2022 increase.
After the 2022 hike, bitcoin rebounded 18% before losing roughly 50%.
The energy shock and rising bond yields are now making financial conditions more difficult.
A rate rise that revives the parallel with 2022
On Wednesday, the U.S. Federal Reserve (Fed) raised its rates by 25 basis points. Its target range now stands at 3.75% to 4.00%. This decision marks the first increase in three years. Markets are now pricing in an additional 75 basis points over the next six months.
Historically, an isolated move is rare in tightening cycles. Since 1994, the Fed has carried out only one single hike. Since 1955, across twelve tightening periods, single hikes remain uncommon.
For bitcoin, the comparison with 2022 has particular interest. Today’s market has little history. The cycle that began in 2015 provides another reference point, but lower liquidity and a less developed market limit the comparison.
$BTC
$NUE.US
$GIB.US
#BTC
The crypto market is returning to a scenario recently seen during the prior monetary tightening cycle. After the first rate hike by the U.S. Federal Reserve in more than three years, bitcoin is evolving in a setup that recalls 2022. Back then, its pullback preceded the March decision, followed by a temporary rebound and then another drop. This comparison is still limited by the market’s maturity. The coming weeks will show whether this historical parallel continues to hold a clear pattern.
The Fed raised its rates by 25 basis points, bringing its range to 3.75%–4.00%.
Bitcoin’s current pullback shows several similarities to the period preceding the March 2022 increase.
After the 2022 hike, bitcoin rebounded 18% before losing roughly 50%.
The energy shock and rising bond yields are now making financial conditions more difficult.
A rate rise that revives the parallel with 2022
On Wednesday, the U.S. Federal Reserve (Fed) raised its rates by 25 basis points. Its target range now stands at 3.75% to 4.00%. This decision marks the first increase in three years. Markets are now pricing in an additional 75 basis points over the next six months.
Historically, an isolated move is rare in tightening cycles. Since 1994, the Fed has carried out only one single hike. Since 1955, across twelve tightening periods, single hikes remain uncommon.
For bitcoin, the comparison with 2022 has particular interest. Today’s market has little history. The cycle that began in 2015 provides another reference point, but lower liquidity and a less developed market limit the comparison.
$BTC
$NUE.US
$GIB.US
#BTC
