Here’s why a 0.75% rate hike by the Fed could be bullish for Bitcoin and altcoins

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The S&P 500 and the Nasdaq Composite Index posted their worst weekly performance since June, as investors continue to worry that the Federal Reserve will need to continue its aggressive monetary policy to contain inflation, which could lead to a recession in the global economy. United States.

Bitcoin (BTC) remains closely correlated with the S&P 500 and is on track to fall more than 9% this week. If this correlation continues, it could hurt cryptocurrency markets more, as Goldman Sachs strategist Sharon Bell warned that aggressive rate hikes could cause a 26% drop in the S&P 500.

Daily display of crypto market data. Source: Coin360

The majority expects the Fed to raise rates by 75 basis points at its next meeting September 20-21, but the FedWatch Tool gives an 18% chance of a 100 basis point rate hike. This uncertainty can keep traders on their toes, resulting in increased short-term volatility.

If the Fed’s rate hike is in line with market expectations, certain cryptocurrencies could attract buyers. Let’s study the charts of five cryptocurrencies that are positive in the short term.