The Federal Reserve's Hawkish Stance Impacts the Crypto Sphere: No Hope for Rate Cuts, Risks Escalate
The transcript of the Federal Reserve's closed-door meeting has been released, sending strong signals of a tough policy that has brought severe shocks to the crypto sphere.
Federal Reserve Chairman Powell clearly opposes hasty rate cuts, stating that such actions would be 'giving money' to speculators and that monetary policy must be defended;
Vice Chairman Jefferson emphasized that indulging in rate cut expectations can breed risks, and it is better to disappoint the market than to curb inflation resurgence;
Regulatory Vice Chairman Barr pointed out the hidden dangers of real estate loans in small and medium-sized banks, advocating for a dual approach of strong policy and regulation. The hope for short-term rate cuts is dim, and continued tightening cannot be ruled out.
The crypto sphere is highly correlated with liquidity; past easing policies have driven cryptocurrency prices to soar. However, the current hawkish stance of the Federal Reserve means that market liquidity is unlikely to increase and may contract, leading to reduced capital inflows, which will significantly increase the risk of cryptocurrency pullbacks.
Board member Kugler warned, using the lessons of inflation in Latin America, that we must adhere to a hawkish stance. Under the backdrop of the Federal Reserve controlling inflation, retail investors' risk appetite is declining, and funds will shift to safe assets like gold and government bonds, exacerbating the outflow of funds from the crypto sphere and greatly increasing the probability of price declines.
The meeting's statement set the tone for 'maintaining financial stability with iron discipline' and will not waver due to market pressures. This signifies that the crypto sphere's celebration may come to an end, with a market winter approaching, and investors need to be wary of the risks brought by changes in policy direction. #加密市场回调 #山寨季何时到来？
Brother Xing's knife is faster than the dog dealer! Follow me, and I'll teach you how to counter the market!