News from March 13!
CICC predicts that U.S. inflation will cool down, with interest rate cuts postponed to the third quarter.
This has a significant impact on the cryptocurrency industry.
In the short term, the Federal Reserve maintains high interest rates, suppressing market liquidity expectations.
Prices of risk assets like cryptocurrencies are easily pressured.
Due to the delay in interest rate cuts, capital costs remain high, leading investors to prefer safe-haven assets like the U.S. dollar.
The short-term speculative demand for cryptocurrencies like Bitcoin is weakened.
However, the decline in inflation also alleviates market concerns about tightening policies,
providing potential support for cryptocurrencies.
After all, cryptocurrencies have a correlation with traditional safe-haven assets.
When concerns about persistent inflation ease, some funds may flow into the cryptocurrency market.