Taper Tantrum was in full force yesterday after the Fed Minutes came out at 2 PM (1/5/2021) with the Markets behaving like a child, even though the news about raising interest rates was already signaled on Dec 15th 2021 after the last Fed meeting.

At this point it is a bit overdone. 

Bitcoin also tanked after the Federal Reserve released twinkles of its December meeting, with policy makers indicating growing apprehension over affectation and the eventuality for interest rates to start rising as soon as this March.

Bitcoin was down more than 4% , soon after the Fed made the meeting minutes public. Fed officers indicated that inflation and tight labor conditions could warrant an interest- rate increase sooner or at a faster pace than anticipated. The minutes also indicated that the Fed may start to shear back its $8.8 trillion balance distance “ fairly soon” after raising its standard  rate.

The selloff in Bitcoin coincided with a sharp downturn in equities, with tech taking it particularly hard. The selloff in Bitcoin is another sign that it’s acting more like a tech stock than an hedge such as digital gold.

If Bitcoin and other cryptos aim to be viewed as true digital assets then will need to start performing that way.  So far, the markets are treating them like high- growth bets.

Trade Safe ..!!