For his part, Federal Reserve Chairman Jerome Powell said another “unusually large” increase in interest rates may be appropriate at the Fed’s September meeting, but the decision will be determined by economic data. the president of the US central bank said on Wednesday.
The Fed’s decision on whether to make a third consecutive 75 basis point hike – or something else – will depend on whether there is firm evidence that inflation is starting to ease, Powell said. at a news conference following the central bank’s latest two-day monetary policy meeting.
What specialists think about the consequences of Fed policy
“Bitcoin and the broader cryptocurrency market may see another relief rally following the 75 basis point rate hike. After that we expect markets to trade sideways while ether may outperform in anticipation of the merger,” he said.
As for trader and analyst Alex Kruger, he projects that the cryptocurrency market could see a small rebound after a 75-point rate increase. However, he warns that there will be a drop if the increase is higher.
Likewise, the specialist Wendy O commented that, with an increase of 75 basic points, we should not see negative effects in the market. But she reckons that if it’s bigger or the Q2 GDP report is released, then bitcoin and other cryptocurrencies could take a hit.
Similarly, Joshua Fernando, the CEO of eCarbon, said: “75 basis points seems to be the consensus, so if we see something noticeably higher and it kills the stock market, then I would expect the crypto market to do so.” same”.
Likewise, he speculates that there will be no price drop in the cryptocurrency market if the increase in interest rates is lower. He summed up that the most important thing will be the guidance given by the Fed. “If the Fed signals sharp rate hikes through 2023, expect more pain in the markets”he concluded.
Source: Ambito
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