Earlier this week, the U.S. Federal Reserve raised interest rates by 75 basis points after the Federal Open Market Committee (FOMC) meeting, bringing the Federal Funds Rate to 3.25%. Bitcoin reacted with a 6.5% swing to the downside that bottomed at $18,600, though it's since recovered to hit the 19,000 mark again
The U.K.’s central bank also took centre stage yesterday, raising its key interest rate by 50 basis points. This is part of an ongoing trend in which the likes of Canada, Switzerland, and the eurozone have recently taken similar actions - signaling a phase of aggressive monetary tightening policy.
Investors are now rightly concerned about the extent to which restrictive monetary policies could suppress economic output - a factor that could negatively impact the prices of cryptocurrencies.