Why does crypto go down when interest rates go up? - Crypto in Plain English - Episode 164 - by cryptohunt.it
Crypto in Plain English - by cryptohunt.it13 Maj 2022

Why does crypto go down when interest rates go up? - Crypto in Plain English - Episode 164 - by cryptohunt.it

Why does crypto go down when interest rates go up?

Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english.

Today, let’s try and understand the recent events in the stock and crypto markets.

You’ve seen the news: The US Federal Reserve is raising interest rates and suddenly the markets freak out. What does one have to do with the other?

When a governments’ central bank raises interest rates, it means that they will guarantee a certain amount of return on investment to anyone. For you, that means you will soon get more interest for money in your savings account, thanks to the government.

But more money in savings accounts also means that more people will take money out of risky investments, such as stock and crypto, and put it back into savings. The reason is simple: It’s much safer, and will now make them enough to be happy with.

And because those people sell that stock and crypto, it drives prices lower. And suddenly other people get worried and also sell, causing a downward spiral.

So, why on earth would governments want this? Right now, it helps reduce high inflation: People lose some money in their investments, they spend less, prices have to go down. And it gives them another powerful tool: When central banks need to, they can now lower interest rates to induce the opposite effect: Increase stock prices when markets need stimulation.

Now you know why investments have lost value recently. Hang in there and keep learning!

Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.


Avsnitt(373)

How NOT to release an NFT – The Porsche disaster - Episode 349 - by cryptohunt.it

How NOT to release an NFT – The Porsche disaster - Episode 349 - by cryptohunt.it

How NOT to release an NFT – The Porsche disaster Welcome to the Cryptohunt Jam, where you learn – in just a minute or two a day – what is happening in crypto and other game-changing ideas. As always: ...

31 Jan 20232min

Why are crypto taxes still so complicated? - Episode 348 - by cryptohunt.it

Why are crypto taxes still so complicated? - Episode 348 - by cryptohunt.it

Why are crypto taxes still so complicated? Welcome to the Cryptohunt Jam, where you learn – in just a minute or two a day – what is happening in crypto and other game-changing ideas. As always: In pla...

30 Jan 20232min

What is Dollar-Cost-Averaging? - Episode 347 - by cryptohunt.it

What is Dollar-Cost-Averaging? - Episode 347 - by cryptohunt.it

What is Dollar-Cost-Averaging? Welcome to the Cryptohunt Jam, where you learn – in just a minute or two a day – what is happening in crypto and other game-changing ideas. As always: In plain English. ...

27 Jan 20233min

Why do crypto bridges keep getting hacked? - Episode 346 - by cryptohunt.it

Why do crypto bridges keep getting hacked? - Episode 346 - by cryptohunt.it

Why do crypto bridges keep getting hacked? Welcome to the Cryptohunt Jam, where we spend a minute a day explaining what is happening in crypto and other game-changing ideas. As always: In plain Englis...

26 Jan 20232min

How North Korea stole $100m in crypto - Episode 345 - by cryptohunt.it

How North Korea stole $100m in crypto - Episode 345 - by cryptohunt.it

How North Korea stole $100m in crypto Welcome to the Cryptohunt Jam, where we spend a minute a day explaining what is happening in crypto and other game-changing ideas. As always: In plain English. Yo...

25 Jan 20232min

A brief history of Gemini and its founders, the Vinkelvoss twins - Episode 344 - by cryptohunt.it

A brief history of Gemini and its founders, the Vinkelvoss twins - Episode 344 - by cryptohunt.it

A brief history of Gemini and its founders, the Vinkelvoss twins Good morning, Cryptohunt community, to the Cryptohunt Jam, where we spend a minute a day explaining what is happening in crypto and oth...

24 Jan 20232min

What is a short squeeze, and why Bitcoin is over $23,000? - Episode 343 - by cryptohunt.it

What is a short squeeze, and why Bitcoin is over $23,000? - Episode 343 - by cryptohunt.it

What is a short squeeze, and why Bitcoin is over $23,000? Welcome to the Cryptohunt Jam, where we spend a minute a day explaining what is happening in crypto and other game-changing ideas. As always: ...

23 Jan 20232min

SBF wasn't lying for once, and FTX customers in the US may actually get their money back - Episode 342 - by cryptohunt.it

SBF wasn't lying for once, and FTX customers in the US may actually get their money back - Episode 342 - by cryptohunt.it

SBF wasn't lying for once, and FTX customers in the US may actually get their money back Welcome to the Cryptohunt Jam, where we spend a minute a day explaining what is happening in crypto and other g...

20 Jan 20232min

Populärt inom Business & ekonomi

framgangspodden
varvet
rss-jossan-nina
rss-svart-marknad
svd-tech-brief
badfluence
rss-borsens-finest
uppgang-och-fall
avanzapodden
bathina-en-podcast
fill-or-kill
tabberaset
24fragor
rss-kort-lang-analyspodden-fran-di
rss-dagen-med-di
lastbilspodden
kapitalet-en-podd-om-ekonomi
borsmorgon
rss-inga-dumma-fragor-om-pengar
rss-veckans-trade