Following the Fed’s most recent increase in interest rates by 0.75%, the values of the NASDAQ and gold have plunged, While Bitcoin (BTC) has increased by 0.55%. It means that BTC is performing better than “safer” assets.

As per the market statistics, Gold is down 0.68%, and NASDAQ is down 4.97%, both of which achieved year-to-date lows in the previous 40 hours.

The Fed has so far adopted a hawkish strategy, waging a fierce war against inflation and working to reduce it to 2%. In a news release, the Federal Reserve made the following statement:

The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. In support of these goals, the Committee decided to raise the target range for the federal funds rate to 3-3/4 to 4 percent.

After the 75 basis point hike, as anticipated, the U.S. Dollar Index (DXY) soared. However, Fed Chairman Jay Powell said there is still a long way to go in the battle against inflation. 

He acknowledged that there was still work to be done and that new information since their last meeting points to higher final interest rates than had been anticipated.

He also argued that it is too early to talk about stopping hikes. As a result, it is unlikely that the Fed will delay hiking interest rates as long as inflation is present.

Bitcoin is Performing Better Than Other Investments

Bitcoin continues to function exactly as it was intended to, despite inflation spooking markets globally. If current patterns hold, demand for the most valuable cryptocurrency in the world should rise, and this price increase should also exceed inflation because supply expansion is constrained.

Michael Saylor, the executive chairman of MicroStrategy, provided evidence to back up this claim. Saylor asserts that Bitcoin is winning and that his company has profited from it during MicroStrategy’s third-quarter results call.

Related Reading | How To Start Investing In Cryptocurrency In 5 Simple Steps

Saylor noted that from August 2020, BTC had increased by 72%. Whereas the NASDAQ has only been up 15%, and Gold has decreased 19% over the same time. 

Although BTC recently saw a decrease due to the ongoing bear market. But this contribution shows the remarkable growth it has earned throughout the years.