The Federal Reserve is now openly hinting at a 0.5% interest rate hike, which could come at any time.
It might do a 0.5% hike just to look like it’s trying to control inflation. But I remain confident that it can’t actually raise rates back to anywhere near normal levels.
I think the fed funds rate might get up to 1.5% to 2%, max. Our economy couldn’t really handle much higher.
But if the Fed does “try to normalize,” markets could get dicey for a while. That includes bitcoin and especially altcoins.
I will be doing what I always do, just holding. And maybe buying if bitcoin prices get down to $20,000 to $25,000.
But I won’t be selling. I think we’re just beginning the final phase of the largest monetary experiment in history. This is no time to sell bitcoin.
And as I wrote about in today’s Early Investing article, financial censorship is also rearing its ugly head. It’s likely that the blocking of financial services based on politics is going to continue for some time. So I will be holding on to my bitcoin.