The U.S. Federal Reserve is widely expected to raise interest rates in the coming months, a move that could have significant implications for the cryptocurrency market. As the central bank grapples with surging inflation, investors in digital assets are preparing for potential turbulence ahead.

Historically, higher interest rates have tended to put downward pressure on riskier assets like cryptocurrencies, as investors seek safer havens for their capital. The prospect of tighter monetary policy has already contributed to a selloff in the crypto market, with Bitcoin and other major digital currencies experiencing sharp declines in recent weeks.

However, some analysts believe that the crypto market may be more resilient this time around, as the industry has matured and diversified in recent years. Additionally, the growing adoption of cryptocurrency by institutional investors could help to mitigate the impact of Fed policy changes.

Source: https://cryptopanic.com/news/19875928/The-number-of-Bitcoin-UTXOs-in-profit-has-fallen-to-its-lowest-point-this-year-The-last-time-this-metric-was-this-low-Bitcoin-experienced-a-rally-of-over-270

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