📢 The Fed, AI, and the Crypto Market: What Awaits Us Next?

Fed Chair Jerome Powell made new comments:

✔ The Fed is watching the stock sell-off triggered by the AI hype. This could increase volatility in crypto as well.

✔ Innovations in AI are a driver of stock market growth, but regulators are more focused on macro data.

✔ It's not necessary to wait for inflation at 2% to lower the rate — this is a positive signal for the markets.

✔ Some assets are overvalued, which could lead to a correction. Crypto, as a high-risk asset, is no exception here.

✔ The Fed is monitoring leverage and financial risks, which could impact liquidity.

✔ Risks to the labor market have decreased, which reduces the chances of a rapid policy easing.

✔ Uncertainty in trade policy is not critical for now, but if it increases, it could affect the macroeconomy and markets.

❗️ What does this mean for the crypto market?

— For now, the Fed is not in a hurry to lower the rate, which restrains the growth of Bitcoin and altcoins.

— Any volatility in the AI sector could spill over into crypto.

— Increased scrutiny of finances = possible restrictions on margin trading and the DeFi sector.

📊 We are monitoring macro data!