Here is why a 0.75% Fed rate hike could be bullish for Bitcoin and altcoins

The S&P 500 and Nasdaq Composite index suffered their worst weekly performance since June as investors remain concerned that the Federal Reserve will need to continue its aggressive monetary policy to curb inflation and that could lead to a recession in the U.S. united

Bitcoin (BTC) remains closely correlated with the S&P 500 and is on track to fall more than 9% this week. If this correlation continues, it could cause more pain in cryptocurrency markets as Goldman Sachs strategist Sharon Bell warned that aggressive rate hikes could lead to a 26% drop in the S&P 500.

Daily view of crypto market data. Source: Coin360

Most expect the Fed to raise rates by 75 basis points at its next meeting on September 20-21, but the FedWatch tool shows an 18% chance of a 100 basis point rate hike. This uncertainty could keep traders on edge, leading to higher short-term volatility.

If the Fed’s rate hike is in line with market expectations, select cryptocurrencies could attract buyers. Let’s study the charts of five cryptocurrencies that are positive in the short term.