Federal Reserve (Fed) will raise interest rates at the May meeting after raising rates for the first time since March 2018. The country's central bank is now expected to raise the Fed's benchmark interest rate by 0.5% according to the CME FedWatch Tool.

Much of the decision was to “offset” the rising rate of inflation. Potentially higher interest rates could spell disaster for regardless of its “deflationary” nature.

1st day of the month 5 full of pain

Market suffered a massive 2.5% correction yesterday.

Analytics platform Santiment commented:

“The cryptocurrency market dropped significantly over the weekend, especially the . If you expect a big price move, expect it to continue into Monday and Tuesday as the Fed moves toward a decision on a rate hike in May.”

The source: Santiment

Firstly, plummeted as shown in the chart above. Despite the claim of "offset inflation", began to fall ahead of the S&P 500 index amid discussions of a rate hike.

The world's largest cryptocurrency began to fall in November, before the S&P 500 fell in response to the Fed's action.

altcoin

The source: bankrate.com

is often seen as a panacea, whether it's inflation, low interest rates, lack of purchasing power, dollar devaluation, etc. Those positives are easy to lead to confidence as long as cryptocurrencies are rising. , seems to ignore the other properties.

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Caleb Tucker, director of portfolio strategy at Merit Financial Advisors, points to the warning signs regarding Generally speaking.

“Cryptocurrencies are seen as a hedge against inflation, but lately they behave like other risky assets like stocks. Higher interest rates will be detrimental to this asset class going forward.”

Switch to , alternative digital assets suffered the wrath of widespread bearish sentiment. The largest adjusted 3% and slid to the $2,700 mark. However, something worse happened later when journalist Wu tweets:

“Altcoins plummet in 24 hours, down 19%, game sector (, , , , ) and the archive field (FIL, , ICP) decreased by more than 12%. Previously, BitMEX founder Arthur Hayes said that altcoins could fall from 75% to 90% in this interest rate hike.

Likewise, altcoin dominance drops after a free fall.

Analysts had previously partly predicted this move. Leading analyst, Benjamin Cowen used to show historical performance warning signal of Bitcoin shows that investing in altcoins is still risky. Previously, BitMEX founder Arthur Hayes said that the altcoin could drop from 75% to 90% during this interest rate hike.

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With such warning signs, it seems that altcoins are not promising at the moment. According to the data of Trading, the king of crypto continues to dominate despite losing its speculative appeal. In fact, the performance of more than 3,700 altcoins shows that 80% of which is a loss vs .

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