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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token_therapist
· 4h ago
Really, the wave from 2021 to 2022 caused so many people to get liquidated... When interest rates go up, risk assets are doomed.
Whenever the Fed raises interest rates, Bitcoin has to kneel; macro factors rule all.
Interest rates are the natural enemy of crypto, there's no way around it.
Initially thought I was buying the bottom, but it kept falling and I kept buying... Still tearing up now.
Prices follow the Fed's lead, with no autonomy.
That wave in 2022 was truly despairing; every rebound was knocked down.
During rate hike cycles, don't expect to get rich quickly; just hold steady.
That's why it's more important to watch US economic data than to look at K-line charts.
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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.