Reflecting on the bear market cycle from 2021 to 2022: the federal funds rate was aggressively raised from 0.25% to 4.50%, while Bitcoin experienced a continuous decline. The high interest rate environment and the downturn in the crypto market formed a stark contrast. The implementation of monetary tightening policies directly impacted risk assets, with Bitcoin, as a high-risk asset, being the first to be suppressed. This period vividly illustrates the deep interconnection between macroeconomic policies and digital asset prices.
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PretendingSerious
· 01-11 21:49
Ah, that's the wave of critical hits. I'm still trying to bottom fish there.
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Whenever the Federal Reserve raises interest rates, Bitcoin just kneels. It's really a chain reaction.
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So now the Federal Reserve is cutting interest rates again. Should we wake up?
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High interest rates kill risk assets. I've heard this logic so many times, but it does have some truth.
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The period from 2021 to 2022 was really tough. Don't even mention it, brother.
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The connection between macroeconomics and crypto prices is so close. How can anyone say Bitcoin is highly independent?
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Honestly, in front of interest rates, there's no Kuaimingshan race car driver. Everyone has to kneel.
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I just want to know when the Federal Reserve will really stop this operation.
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Fortunately, I didn't go all in, or I would have really lost blood this time.
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Got it. Watching interest rate trends is much more reliable than technical analysis in the future.
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BlockchainFries
· 01-11 21:45
Oh my, I was completely caught in a sea of blood and tears back then.
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Whenever interest rates rise, BTC has to kneel, there's no escaping.
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So, gambling with the Federal Reserve is basically asking for death.
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That period in 2021-2022 was truly intense, watching the account go from green to red and then into negative territory.
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When macro policies shift, our coins have to tremble; this is the reality.
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In simple terms, the Federal Reserve is playing chess, and we're the ones getting hit.
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I used to think Bitcoin could be independent of the economic cycle, but I was so naive.
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High interest rates are the Grim Reaper of the crypto market, with no exceptions.
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Back then, no one could save us; even institutions ran away.
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And now, you still dare to say BTC is decoupled from traditional finance? Laughable.
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I remember how I suffered huge losses that year; even now, I feel heartache when I think about it.
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NftDeepBreather
· 01-11 21:43
That period was truly intense. Watching interest rates soar while Bitcoin kept falling, I felt powerless to do anything.
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Thinking back to 2021 when I was bragging, only to be slapped in the face by reality the next year. Now I finally understand what macroeconomics is all about.
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Basically, once the Federal Reserve makes a move, all us retail investors are powerless. High-risk assets are always the scapegoats.
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This bear market taught me one thing: going against macro trends is just giving away money. When interest rates are bottomless, what can you expect?
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Does anyone still not understand the relationship between economic policies and crypto prices? The 2021 to 2022 period was a textbook example.
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Interest rates multiplied by 18 times. If Bitcoin is still alive, that’s a win. That’s brutal.
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Only now do I realize that the rise and fall of the crypto market is not really up to us; the Fed is the true kingmaker.
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That period was really tough. Not just Bitcoin, but all high-risk assets were getting hammered. There’s nothing we can do about it.
Reflecting on the bear market cycle from 2021 to 2022: the federal funds rate was aggressively raised from 0.25% to 4.50%, while Bitcoin experienced a continuous decline. The high interest rate environment and the downturn in the crypto market formed a stark contrast. The implementation of monetary tightening policies directly impacted risk assets, with Bitcoin, as a high-risk asset, being the first to be suppressed. This period vividly illustrates the deep interconnection between macroeconomic policies and digital asset prices.