Brian Spinelli, co-chief investment officer at Halbert Hargrove, said higher interest rates generally reduce investors’ appetite for riskier investments, which may have contributed to the sharp pullback in digital asset prices last year. A glance at the total cryptocurrency market capitalization chart clearly shows that the cryptocurrency market has reacted to a decline in investor liquidity similar to many traditional stocks. When the Federal Reserve announced that it would raise interest rates in November 2021, cryptocurrencies such as Bitcoin had hit all-time highs, with a total asset market capitalization of over $2.9 trillion. However, by June 2022, the cryptocurrency market had fallen below the $1 trillion mark. It is clear that throughout 2022, rising benchmark interest rates have coincided with a loss of investor interest in investing funds in cryptocurrencies. Although there are clear signs of a recovery in 2023, we have yet to see the return of the fascinating bull market of 2021 across the landscape. (Finextra)