Crypto Market: Bearish Blues or Just a Temporary Frown? 🤔

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In a rather predictable turn of events, akin to a well-rehearsed ballet, the Bank of Japan (BoJ) decided to keep its uncollateralized overnight call rate unchanged on a rather uneventful Tuesday. Following suit, the Federal Reserve, under the watchful eye of the ever-eloquent Jerome Powell, announced on Wednesday that the Fed Funds Rate would remain nestled comfortably between 4.25 percent and 4.5 percent. Ah, the sweet sound of stagnation! 🎭

During his oration, Powell, with the gravitas of a seasoned actor, proclaimed that inflation expectations have taken a little jaunt upwards, spurred on by the delightful chaos of tariff wars. Meanwhile, our dear President Donald Trump, in a moment of uncharacteristic restraint, suggested that the Fed should lower its benchmark interest rate by a whopping 2.5 points. Because why not? Who doesn’t love a good rate cut? 💸

What Next for the Crypto Market

As the crypto market finds itself in a rather gloomy mood, much like a rainy day in a Russian novel, the ongoing crisis in the Middle East has only added to the bearish sentiment. With the Fed’s announcement of its intent to continue the grand spectacle of Quantitative Tightening (QT) by reducing its holdings of Treasury securities and bonds, one can only assume that this short-term bearish sentiment will linger like an unwelcome guest at a dinner party.

“The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective,” the Fed noted, as if reciting a line from a tragic play.

In the meantime, a curious mix of optimism and skepticism brews among the Fed officials, with 12 of them envisioning at least one rate cut before the year’s end, while 7 remain steadfast in their belief that no such cut will occur. According to the ever-reliable LSEG data, the U.S. interest rate futures are whispering sweet nothings about a 71 percent chance of a rate cut in September. 📉

As Coinpedia has previously reported, the wider crypto market is expected to experience an “accumulation summer” in the coming months, followed by an epic rally that would make even the most stoic of investors raise an eyebrow. This narrative, echoed by the insightful crypto analyst Benjamin Cowen, suggests that the altcoin market will continue to bleed into Bitcoin, much like a tragic hero succumbing to fate.

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2025-06-18 22:41