Get ready! Economic news is blowing in like a storm, and the crypto market is facing severe downward winds in the short term!
The Federal Reserve's decision shakes the markets!
After the Bank of Japan kept interest rates unchanged, the US Federal Reserve followed suit with a similar decision! Fed Chair Jerome Powell announced on Wednesday to keep the federal funds rate between 4.25% and 4.5%, pointing to rising inflation expectations due to "trade wars"! Even Donald Trump has called for significant rate cuts... but the Fed has a different opinion!
What does this mean for the cryptocurrency market?
The feeling of pessimism is on the rise, especially with the ongoing Middle East crisis. More importantly, the Federal Reserve will continue to reduce its bond holdings (quantitative tightening - QT), which means continued downward pressure in the short term!
Is there hope? Predictions are conflicting!
Division within the Federal Reserve: 12 officials expect at least one rate cut this year, while 7 others see no cuts!
September cut probability: London Stock Exchange data indicates a 71% likelihood of interest rate cuts in September!
Cumulative summer... a prelude to the big explosion?
Despite the clouds, there is a glimmer of hope! Experts expect the cryptocurrency market to experience a "cumulative summer" in the coming months, before a massive surge by the end of this year! Benjamin Quinn, a cryptocurrency analyst, anticipates a similar scenario, where altcoins may continue to decline against Bitcoin before the big rise!
Are we on the verge of a consolidation period followed by a rocket launch? Stay tuned to the events closely!
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