BlackRock: Prolonged High Levels of Interest Rates Could Hit Bitcoin Price and Cryptocurrency Markets

BlackRock, the largest issuer of Bitcoin ETFs, has warned that an unprecedented situation is unfolding that will likely hit Bitcoin prices and cryptocurrency markets. Analysts at BlackRock say that central banks are being forced to keep interest rates higher than they were before the outbreak in response to continued inflationary pressures. The new macroeconomic regime is characterized by rising inflation, higher interest rates and slower growth as a result of supply constraints, and the disruption is set to persist for an extended period of time. At the beginning of the month, U.S. Treasury Secretary Yellen noted that the Federal Reserve's prolonged maintenance of interest rate levels at high levels has made it more difficult for the U.S. Treasury to control deficits and interest payments, and will likely lead to the collapse of Bitcoin and other cryptocurrencies. Bitcoin's price action is a direct reflection of the market's attitude towards this warning. Since hitting today's high of $71,907 on June 7, the price of bitcoin has lost a cumulative total of about 10% of its value.