As of December 20th, Bitcoin is staying in the second half of $3000. Fortunately, the volume of trading has increased and the market capitalization has risen to 120 billion. Maybe we should wait and see if the next support line, the $4300 line will go smoothly.
Early on December 20, the Federal Reserve Bank announced a 0.25% increase in interest rates from 2.00~2.25% to 2.25~2.50%. Any increase in interest rates may have a negative impact on risk investments assets. We need to wait and see if it's putting cold water on the rise of the current crypto currency.
The Federal Reserve Bank's announce of interest rate increase reduces the volume of money on the market, funds invested in digital assets through loans will attempt to clean up their assets. And It is logic of the financial market that it reduces the liquidity of the market and increases the amount of dollars recovered.
Bitcoin is also included in the Digital Asset. And It is categorized as a high-risk digital asset. Then, the market capitalization will be reduced due to the collectible of the assets of Bitcoin and Altcoin currently invested. In conclusion, the focus is more on the fall in prices.
Currently, Bitcoin has risen from the early $3,000 line to the $3800 line. But If the existing investment is collected, the worst case scenario could be to break the all-time low and increase investor fear. Also If investors clear up the funds that they've maintained in the market, There is a possibility of falling to $2,500 line that experts who predicted the decline saying.
However, the current cryptocurrency market is likely to be formed primarily by long-term investors as the market has already fallen a lot. Increasing interest rates will cause neighboring countries to lose currency value because of the dollar's rise in value. As Bitcoin's dollar rises, the short-term bitcoin’s price is a possibility that it will go up.
I suppose it's rare for a big decline to proceed right now. And I think that interest rate increases have time to influence on the market. Investors and those interested in the cryptocurrency market need to see how this rate increase affects the market.