The cryptocurrency market is temporarily quiet after the latest remarks from Fed Chair Jerome Powell, causing expectations for a rate cut in September to drop sharply from 63% to 43% (according to CME Fed Watch).
🔍 Quick summary:
The Fed has not made a decision due to high inflation (CPI in June at 2.7%) and a stable labor market (unemployment at 4.2%).
Although 2 Fed members support rate cuts – a rare occurrence – the majority still prefer a cautious approach.
Current interest rates continue to pressure risk assets like crypto.
📉 How will the crypto market react?
Bitcoin enters a weak performance zone: an average drop of 8.6% in August, and a 4.6% drop in September over the past 12 years.
BTC is currently fluctuating around 116,000–119,000 USD, with no breakout signals.
If the Fed delays cutting rates, speculative money may stagnate, but the market can still maintain its level if liquidity does not withdraw sharply.
🎯 Key message:
The Fed remains cautious about inflation and is not rushing to ease.
Crypto enters a "difficult growth" phase, with short-term risks rising.
The Fed's next move will shape the trend for Q4.