Rate Hike
Rate hike, also known as a rate increase, is when the value of a currency or asset increases significantly over a short period of time. This usually occurs due to an increase in demand for that currency or asset, resulting in its market price rising faster than usual. In the world of cryptocurrencies, this can be caused by various factors such as increased usage and adoption of the cryptocurrency by businesses and individuals, positive news about the project behind it (such as development milestones), large-scale investments from institutional players like banks and hedge funds, etc.
When it comes to rate hikes in cryptocurrencies there are two main types – organic and artificial. Organic rate hikes occur when normal market forces drive up prices due to increased demand while artificial rate hikes are typically caused by manipulation tactics employed by traders looking to make quick profits on their holdings. It’s important to note that most exchanges have rules against artificially boosting the price of any digital asset through manipulative trading practices so these tactics should only be used with caution if at all since they can lead to severe consequences including account suspension or closure if caught.
In order for investors looking to benefit from rate hikes it’s important to do your own research on each cryptocurrency before investing so you’re aware of any potential risks associated with them (such as lack of liquidity). Additionally try not get too caught up in trying to predict where rates may go next – remember that markets are unpredictable so focus instead on making smart investment decisions based on facts rather than speculation alone!