{"id":330851,"date":"2024-06-25T19:25:31","date_gmt":"2024-06-25T13:55:31","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=330851"},"modified":"2024-06-25T19:25:31","modified_gmt":"2024-06-25T13:55:31","slug":"fed-governor-says-rate-cuts-unlikely-this-year-crypto-crash-to-worsen-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/fed-governor-says-rate-cuts-unlikely-this-year-crypto-crash-to-worsen-crypto-news\/","title":{"rendered":"Fed Governor Says Rate Cuts Unlikely This Year, Crypto Crash To Worsen? – Crypto News"},"content":{"rendered":"

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Federal Reserve Governor Michelle W. Bowman declared that it is premature to consider cutting interest rates<\/a> in 2024. This announcement comes at a time of heightened sensitivity in both traditional and crypto markets. Moreover, the situation has intensified as key economic data releases are anticipated later this week.<\/p>\n

Federal Reserve Governor Ditches Rate Cut Speculations<\/h2>\n

In a recent statement, Governor Bowman underscored that while there has been modest progress in controlling U.S. inflation, it remains elevated and subject to various upside risks. This perspective aligns with the Federal Reserve\u2019s cautious approach to monetary policy amidst an uncertain economic landscape. Moreover, Bowman highlighted the necessity for the Federal Reserve to maintain its independence and remain apolitical in its decision-making processes.<\/p>\n

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The remarks come ahead of the second revision of the U.S. GDP data for the first quarter, which will be released on Thursday, June 27. Additionally, critical data on Personal Income, Personal Spending, and the U.S. PCE inflation are scheduled for release on Friday. The PCE and Core PCE inflation data, in particular, will be closely scrutinized by market participants.<\/p>\n

The Federal Reserve Governor stated, \u201cHowever, with average core CPI inflation this year through May running at an annualized rate of 3.8\u202fpercent, notably above average inflation in the second half of last year, I expect inflation to remain elevated for some time.\u201d Moreover, he hinted at diverging from global monetary policy trends, including the U.K. policies.<\/p>\n

Bowman added, \u201cIn contrast to the past two years, it is possible over the coming months that the path of monetary policy in the U.S. will diverge from that of other advanced economies, including the U.K., as the underlying economic developments and outlooks across jurisdictions exhibit greater heterogeneity.\u201d This suggests that even if Bank of England (BoE)<\/a> considers a rate cut due to the recent inflation drop to 2%, the U.S. is unlikely to mirror the approach.<\/p>\n

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Also Read:\u00a0Bitcoin Crashes 30% Against Gold, Here\u2019s Why Peter Schiff Warns Further Dip<\/a><\/strong><\/p>\n

Bearish Trend In Crypto Market<\/h2>\n

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The Federal Reserve\u2019s monetary policy plays a crucial role in shaping market conditions, and this extends to the crypto market. Higher interest rates generally lead to a stronger U.S. dollar, which can exert downward pressure on asset prices, including cryptocurrencies. Conversely, lower rates typically support asset price inflation as investors seek higher returns in riskier markets.<\/p>\n

Bowman\u2019s indication that rate cuts are unlikely until 2025 implies that the cost of borrowing will remain relatively high, potentially stifling investment flows into the crypto market. This scenario can expedite the June crypto crash, as investors may prefer safer, yield-bearing assets over volatile cryptocurrencies.<\/p>\n

The crypto market has been experiencing significant volatility. Bitcoin (BTC), the leading crypto, recently witnessed a crash below $59,000 amid substantial sell-offs. Contributing factors include the latest offloading of 400 BTC by the German government. In addition, the anticipated repayment of $9 billion worth of Bitcoin<\/a> from Mt. Gox further dampened market sentiment.<\/p>\n

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Bitcoin\u2019s Relative Strength Index (RSI) recently touched 28, a level that typically signals an oversold condition and potential for a rebound. Despite this, the lack of anticipated rate cuts has fueled fears of prolonged market turbulence. As traditional financial conditions tighten, the appetite for riskier assets such as cryptocurrencies often diminishes.<\/p>\n

However, altcoins like Ethereum (ETH), Solana (SOL, and Dogecoin (DOGE) showed resilience despite Bitcoin\u2019s decline. Nonetheless, the fears of a crypto crash loom as the Federal Reserve maintains a hawkish stance on rate cuts. 10x Research, a crypto analytics firm, highlighted that despite the cool CPI data, Bitcoin failed to breakout due to the Fed\u2019s rigid stance.<\/p>\n

Also Read:\u00a0Bitcoin Miners Sell 30K BTC, Miner Reserve Dips To 14-Year Low<\/a><\/strong><\/p>\n

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CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article. <\/p>\n<\/p><\/div>\n

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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.<\/p>\n<\/div><\/div>\n<\/p><\/div>\n

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Federal Reserve Governor Michelle W. Bowman declared that it is premature to consider cutting interest rates in 2024. This announcement comes at a time of heightened sensitivity in both traditional and crypto markets. Moreover, the situation has intensified as key economic data releases are anticipated later this week. Federal Reserve Governor Ditches Rate Cut Speculations […]<\/p>\n","protected":false},"author":2,"featured_media":238996,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[192,29,198,194,195,199,196,193,197,200],"class_list":["post-330851","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-blockchain-business","tag-business","tag-coins","tag-crypto-business","tag-cryptocurrency-business","tag-fiat","tag-metaverse-business","tag-nft-business","tag-token","tag-token-business"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/330851","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=330851"}],"version-history":[{"count":3,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/330851\/revisions"}],"predecessor-version":[{"id":330858,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/330851\/revisions\/330858"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/238996"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=330851"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=330851"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=330851"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}