The FX market has overreacted to the interest rate hike of the Fed in the short run. The actual interest rate in the US is still negative despite the hike after taking into account inflation.
Real fed funds rate (Reference: core CPI)
Source: Deustsche Asset Management Investment GmbH, Bloomberg
The USD/EUR exchange rate has jumped from last week, tempting some crypto traders to invest in Bitcoin and other cryptocurrencies to hedge against their FX exposure.
Source: XE.com
I remain doubtful that the rebounce in Bitcoin price is a real one or not in the short run. If Bitcoin goes beyond US$7,000 I may change my view. In the long run I remain bullish on Bitcoin as a source of store of value/hedging instrument.