Analysis of the Federal Reserve's monetary policy and its impact on the cryptocurrency market
The Federal Reserve's policies and their impact on the US dollar
On June 20, reports from Jinshi regarding the Federal Reserve's monetary policy described that inflation remains at a "certainly high" level. The labor market is still in "good shape", however, the value of the US dollar in the foreign exchange market is trending down. Investors are particularly focused on the stability of the bond market, although liquidity has dropped to its lowest level since early 2023, largely due to tariff adjustments. This is a factor negatively affecting the confidence of businesses and households.
The impact of tariffs and inflation on the cryptocurrency market
The impact of tariff adjustments has not been clearly reflected in official data, but initial signs indicate they have contributed to reducing inflation. The slight increase in inflation has created a positive sentiment for cryptocurrency markets, as investors seek refuge from macroeconomic fluctuations. The cryptocurrency market, such as Bitcoin and Ethereum, is showing better defensive capabilities against the instability factors of the traditional economy.
The future of the cryptocurrency market under the influence of monetary policy
Despite temporary fluctuations, the stability of global finance is still maintained. The Federal Reserve's decisions have shown a flexible response capability, helping to mitigate larger risks. In this context, cryptocurrencies seem to continue to play the role of a potential safe haven, especially in the context of inflation likely continuing to rise or the financial market facing shocks. Wise investors need to closely monitor the Fed's tightening or loosening policies to have appropriate strategies during this volatile period.
Source: https://tintucbitcoin.com/chinh-sach-fed-lam-phat-tang-viec-lam-on-dinh/
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