After the Bank of Japan (BoJ) held its uncollateralized overnight call rate unchanged on Tuesday, the Federal Reserve has followed a similar path. On Wednesday, Fed Chair Jerome Powell announced that the Fed Funds Rate will remain between 4.25 percent and 4.5 percent.
During his speech on Wednesday, Powell said that the near-term inflation expectations have moved up fueled by tariff wars. Earlier on Wednesday, President Donald Trump reiterated that the Fed should cut its benchmark interest rate and should be 2.5 points lower.
The crypto market has experienced heightened bearish sentiment amid the ongoing Middle East crisis. With the Fed announcing its intent to continue reducing its holdings of Treasury securities and bonds, popularly known as Quantitative Tightening (QT), the short term bearish sentiment will likely persist.
“The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage‑backed securities. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective,” the Fed noted.
Meanwhile, 12 Fed officials see at least one rate cut before the end of this year while 7 Fed officials expect a no rate cut before EOY. According to LSEG data, the U.S. interest rate futures have a 71 percent chance that the Fed will cut its rate in September.
As Coinpedia has previously reported, the wider crypto market will likely experience an accumulation summer in the coming months before an epic rally before the end of this year. A similar narrative was coined by crypto analyst Benjamin Cowen, who predicted that the altcoin market will continue to bleed to Bitcoin in the coming months.
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
Timing is everything in crypto, and most of the biggest gains rarely come from buying…
A sharp sell-off in silver has unexpectedly reignited one of crypto’s longest-running debates. Finance expert…
The broader cryptocurrency market remains under sustained pressure as bearish sentiment continues to dominate investor…
As Bitcoin has stayed below $100,000 for the past two months, concerns are growing among…
Lighter, widely seen as one of Hyperliquid’s strongest rivals in decentralized derivatives trading, has officially…
Investors who bought MicroStrategy ($MSTR) at 2.5x mNAV in June 2021 are now structurally outperforming…
