Powell is 'not in a hurry', strong signals of cooling in the crypto market!
On June 19th at midnight Beijing time, the Federal Reserve announced that it will continue to maintain the current high interest rates. This marks their fourth consecutive meeting deciding not to cut interest rates. However, this was already expected by the market.
Nevertheless, the market is most concerned about Powell's remarks. He clearly stated at the press conference that there is no urgency to cut interest rates, as there are sufficient conditions to wait a bit longer and observe the trends in economic data. He also mentioned that inflation caused by tariffs has recently shown some signs of rising, and they need to be certain that inflation is genuinely on a downward trend before considering cutting rates.
For the crypto market, the delay in expectations for interest rate cuts is obviously a negative signal, but it is typically only a short-term negative. 'Hawkish' signals will suppress market risk appetite, but if subsequent inflation data shows a decline, it may reignite expectations for rate cuts within the year, which would be positive for the crypto market.
