“The likelihood of a Fed rate cut in July has collapsed — from 25% to below 5% overnight. Why? Inflation driven by rising tariffs and very strong jobs reports keep the Fed on hold… for now. No cuts = risky assets remain cautious,” wrote a crypto educator, CryptosRus.
Since December, the Federal Reserve has kept interest rates stable between 4.25% and 4.5%. This has drawn criticism from President Trump, who even threatened to fire Fed Chair Jerome Powell. However, Powell remains steadfast.
Meanwhile, these changes in interest rate expectations could create headwinds for the crypto market. Higher interest rates make traditional investments, such as bonds, more attractive, potentially diverting attention from risky assets like cryptocurrencies. Thus, declining demand could pressure prices.
🔥Despite the challenges, Bitcoin may become more attractive due to rising US debt, inflation concerns, and a weakening US$.
