Jiang Zhuoer: Interest rate hikes will not cause the cryptocurrency bull market to die prematurely; in 2021, it faced the dual pressure of high interest rates and balance sheet reduction but still rose.

BlockBeats news, September 18: Jiang Zhuoer, founder of LBTC Mining Pool, published an analysis titled "Will Interest Rate Hikes Cause the Crypto Bull Market to Die Young?" with a simple conclusion that the impact is minimal. The growth of the crypto space and the influence of its internal cycles far outweigh the impact of interest rate hikes. BTC's full historical chart shows that the bull markets of 2013 and 2021 both rose under conditions of interest rate hikes or high interest rates, especially the 2021 bull market, which faced the dual impact of high interest rates combined with balance sheet reduction.

The reason the crypto space can ignore unfavorable factors is first its high growth potential—a single bull market cycle may see gains exceeding tenfold, so it does not care whether interest rates are 3% or 5%; second, the total market capitalization of cryptocurrencies is equivalent to a fraction of the U.S. stock market, so the impact of the U.S. stock market diverting new capital exceeds that of the Federal Reserve's balance sheet reduction.