Another Crypto Crash In November As Fed Hints At 0.75% Rate Hike?

As reports suggested that Fed could raise interest rate in November, Bitcoin showed early signs of crypto crash next month. The Fed officials are reportedly planning on another interest rate rise of 0.75 percentage point at their meeting between November 1 and 2. Also, the Fed is likely to debate during the meet on indicating a smaller rate hike subsequently in December. Meanwhile, Bitcoin (BTC) price dropped sharply on Friday following the reports confirming Fed rate hike in November.

The Federal Reserve officials appear to make borrowing expensive to slow down spending activity. According to a Wall Street Journal report, the officials want higher borrowing costs and lower asset prices. This is to slow economic activity by curbing spending, hiring and investment. The officials thereby plan on reducing demand and hence lowering inflation over a period of time. This plan has been evident from the comments made by Fed officials on various occasions in recent times.