Fed Hawkish Outlook Dey Trigger Cryptocurrency Decline
Federal Reserve governor Michael Hammack talk say persistent inflation wey tariffs make worse, plus labour market wey fragile but balanced, no get reason to cut interest rate or do economic stimulus soon. Him hawkish stance don put more pressure for cryptocurrency market, make the downturn wey start for August dey quicken. Bitcoin (BTC) fit break the $125,500 support level as investors dey adjust their expectations. With no relief on the rate way dey come, traders go face more wahala with volatility and asset prices wey dey drop. The lack of expected Fed easing show say market no too easy for digital currencies as people dey weigh inflation risk against labour market and bigger economic indicators.
Bearish
Hammack clear rejection of near-term rate cuts and stimulus dey show Fed commitment to fight inflation, one stance wey historically dey linked to lower pressure on risk assets like cryptocurrencies. Similar tough Fed signals in 2022 cause sharp sell-offs for BTC as investors bin price in higher rates and delay monetary easing. For short term, traders fit expect more volatility and possible further decline as inflation data still stubborn. Long term, digital assets fit stabilize only when Fed signal say dem dey move toward neutral or dovish policy, but now, outlook still bearish.