🔥Recent statements by Jerome Powell (Chairman of the Federal Reserve) are focusing attention on interest rates and liquidity in the cryptocurrency market, rather than the conflict between Israel and Iran.
Powell indicated that rates will remain "higher for longer" due to inflation continuing above 2%, which means there will be no rate cuts soon. This stance is generating caution among investors and crypto traders are preparing for tighter liquidity. High borrowing costs are leading leveraged traders to reassess their positions, and assets like $BTC and $ETH are holding in narrow ranges.
Key implications for traders:
* Stablecoins are gaining appeal as safe havens.
* Short-term traders may focus on hedges around important economic data (CPI, employment).
* Institutional flows may slow down until the Fed adopts a more flexible policy.
In summary, Powell's comments are a macroeconomic reminder about the lack of rate cuts and the possible tightening of liquidity in crypto, shaping risk appetite and market positioning, unrelated to military issues.
