Bitcoin Repeating the 2022 Playbook? Market Warns of "Rally First, Selloff Later"

Odaily reports that the Federal Reserve raised interest rates by 25 basis points on September 16, lifting the federal funds rate target range to 3.75%–4.00%, with markets expecting a further 75 basis points of tightening over the next six months. Bitcoin has fallen about 40% from its high of roughly $126,000 last October, similar to the 40% decline from its November 2021 peak of about $69,000 when the Fed first hiked in March 2022. After the March 2022 rate hike, Bitcoin rallied about 18% over 12 days before sliding a further 50%.

The analysis further notes that the current price action may carry a similar risk of "rally first, selloff later," though a single historical cycle offers limited guidance. Meanwhile, geopolitical tensions in the Middle East have pushed WTI and Brent crude above $100 per barrel, and the U.S. 10-year Treasury yield has climbed to 5%, potentially intensifying inflation and financial market pressure. (CoinDesk)