🚨 Inflation & Crypto: Why the Fed’s No-Rate-Cut Stance Matters 🚨
July’s CPI came in at 2.7% YoY, steady but with core inflation climbing to 3.1%, the hottest in months. 📈
Translation? The Fed is less likely to cut rates soon.
💡 Why this matters for crypto:
Higher rates = stronger USD → risk assets like Bitcoin and altcoins can face selling pressure.
Tighter liquidity → less “cheap money” flowing into speculative markets.
Risk sentiment shifts → traders may move to safer assets until monetary policy eases.
But… 📊
Crypto isn’t just about macro headwinds. Long-term narratives (BTC halving, ETH scaling, adoption growth) can still drive demand, especially if inflation keeps eroding trust in fiat.
Persistent inflation keeps the Fed hawkish, which can weigh on short-term crypto prices. For long-term believers? Volatility = opportunity. 🚀
