What Impacts do Interest Rates Have on Financial and Crypto Markets?

In this clip, we go further into our interest rate discussion and look at the impact it will have on financial markets.

With the cost of capital increasing, you might be wondering; how will this effect the stock and crypto markets? There will be short-term volatility but overall, raising rates is bearish for stocks. Bearish stocks usually means bearish crypto. You may see hedge funds that are involved with crypto liquidate their crypto due to problems in the stock market.

With the real estate market, we've seen that less people are applying for loans and financing houses. Increased rates make homes more expensive for buyers, thereby reducing the demand for home purchases.

As more and more of the economy becomes financialized, things become more sensitive to interest rates changing. Those little changes in buying power have magnified effects over time.

At the end of a stagflation period, like the one we're currently in, crypto usually comes out stronger and more publicly accepted on the other side. What happens in between then and now... could be a bumpy ride!

We talk about this and more in this clip from the Weekly AMA!

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