Tim Draper performed at Paris Blockchain Week with a song about the main crypto coin

A new analytics report from Coinbase says that cryptocurrencies will strengthen in the long term. Analysts believe that the key role in the current environment will be played by the Fed.

Experts presented several options for the development of events: the regulator will not increase interest rates, or it will raise rates by 25 points with a further suspension of growth, or increase the rate by 25 bp. with its subsequent growth, trying to stop inflation.

At the same time, Coinbase is confident that in the current situation, the rate will not be increased by 50 points, or reduced. Analysts emphasize that in any case, the cryptocurrency industry will benefit.

As interest rates rise, bank loans tend to become more expensive. In fact, they are relatively cheap money that can be invested in cryptocurrencies. And this is likely to lead to an increase in the rates of digital currencies.

A slight increase in the rate followed by a pause is the theoretical scenario in which the situation described in the first case is also likely. However, there will be some delay in time, since at the moment the rate, although a little, will still grow.

A slowdown in the growth of the rate with its further rise, according to Coinbase, is the most realistic scenario. According to experts, the Fed believes that they have already coped with the banking crisis and stopped the flow of discontent. In this regard, it is reasonable to slow down the pace of rate hikes a bit in order to consolidate the result.

Meanwhile, billionaire investor Tim Draper recently performed at Paris Blockchain Week with a song about the main crypto coin. He noted that the lyrics were written several years ago, but are still relevant. Draper dedicated the song to Silicon Valley Bank and “all the banks that have failed and will fail in the future.”

At the same time, the investor pointed to the distrust in the crypto market that has developed in society and noted that the authorities of different countries are in “absolute panic”.

“We are experiencing anthropological changes that are difficult for people. Many resist this,” he concluded.