Crypto’s Macro Drivers: It’s Not Just About Bitcoin

• The US Federal Reserve recently raised rates by 25 bp, likely the last hike in this cycle.
• This is positive news for crypto markets, as macroeconomic conditions are improving.
• Analyses of recent GDP and inflation data show that consumer spending is up despite the rate hikes.

U.S. Federal Reserve Raises Interest Rates

The US Federal Reserve recently raised interest rates by 25 basis points (bps), making it likely to be the last increase in this cycle. This follows a series of rate hikes over the past few years intended to keep inflation in check.

Macro Outlook Improves for Crypto Markets

This week’s news has been welcomed by the crypto market, as macroeconomic conditions continue to improve which is beneficial for cryptocurrencies such as Bitcoin and other assets. With the Fed no longer raising rates, investors can now focus on other factors when making investment decisions.

GDP & Inflation Data

Preliminary U.S GDP came in at 1.1% quarter-on-quarter growth in Q1, much lower than expected and down from 2.6% in Q4 of last year due to weak inventory build up and defense spending declines. Adjusted for inflation, consumer spending jumped 3.7% in Q1 – higher than the previous quarter’s 1%. Meanwhile, inflation data (based on core Personal Consumption Expenditure) increased by 4.9%, higher than expected but still within target range set by the Federal Reserve Board of Governors

Monetary Policy Changes

With these figures indicating that price levels are stable and economic growth has slowed down slightly due to rising interest rates, it appears that there will be no further rate increases from the Fed this year or beyond – meaning monetary policy changes could have a long term impact on cryptocurrency prices too..


The recent raise in US federal interest rates was likely the last one before a possible cut later this year or next year which could benefit crypto markets overall through improved macroeconomic conditions and greater investor confidence with monetary policy changes being seen as less disruptive to their investments plans going forward