Fed’s Hawkish Stance Weighs on Crypto Markets as Rate Cut Hopes Dim
Cryptocurrency markets face mounting pressure as Federal Reserve Chair Jerome Powell signals prolonged monetary tightening. The central bank's resistance to immediate rate cuts, despite political pressure, has eroded trader optimism—July's 47% probability for easing now appears increasingly unlikely amid persistent inflation.
Powell's emphasis on tariff-driven price pressures and high U.S. debt levels creates a perfect storm for risk assets. October futures still price a 70% chance of policy relief, but December may deliver only a solitary cut. This limbo period leaves crypto traders navigating crosscurrents of institutional caution and retail speculation.