The Federal Reserve has decided to keep the Fed Funds Rate steady at 4.25 to 4.5 percent, following the Bank of Japan’s unchanged uncollateralized overnight call rate. Fed Chair Jerome Powell noted that short-term inflation expectations have risen due to tariff conflicts. President Donald Trump has urged the Fed to lower its benchmark rate by 2.5 points.
The crypto market faces a bearish trend due to ongoing Middle East tensions. The Fed’s plan to reduce Treasury securities and bonds holdings through Quantitative Tightening (QT) is expected to prolong the short-term bearish sentiment.
According to the Fed, they aim to lower their holdings of Treasury securities, agency debt, and mortgage-backed securities while focusing on maximum employment and achieving 2 percent inflation. Some Fed officials anticipate a rate cut by the end of the year, with U.S. interest rate futures suggesting a 71 percent likelihood of a rate cut in September.
Coinpedia’s analysis forecasts a period of accumulation in the wider crypto market this summer, followed by a significant rally later in the year. Analyst Benjamin Cowen predicts that altcoins will continue to decline relative to Bitcoin in the upcoming months.
Note: Investments carry market risks. Please invest carefully. We do not accept responsibility for any financial losses.
