Analyst predicts BTC stability despite potential Fed rate hikes

Crypto analyst Murphy stated Bitcoin is unlikely to enter a bear market immediately even if the U.S. Federal Reserve starts raising interest rates. Murphy emphasized that the pace of tightening and the structure of BTC holdings are key factors influencing market direction. In 2022, during the Fed's total 425-basis-point rate hikes, BTC dropped from about 41000 to 15800. Conversely, in 2023, BTC increased from 16500 to 42000 despite four rate hikes of 25 basis points each. Murphy noted that Bitcoin's current structure resembles early 2023 more than the period of the first rate hike in 2022, as the asset has spent approximately six months forming a bottom range and experienced repeated capitulation, along with significant reshuffling of holdings.

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