JPMorgan and Citigroup postpone rate cuts: impact on cryptocurrency markets
Shift in US interest rate expectations
Recent releases of US economic indicators have led major financial institutions such as JPMorgan Chase and Citigroup to reassess their interest rate forecasts. In light of the poor employment data released last Friday, these banks have postponed the rate cuts originally scheduled for July to later in September and December.
Adjustments by major financial institutions
According to sources from the Wall Street Journal (especially Nick Timiraos), the consensus among top financial analysts and Fed watchers is gradually deepening. Expectations for a rate cut in July have been greatly reduced, and most now believe that adjustments may be made in September or December. A chief economist at JPMorgan Chase emphasized: "The postponement of the rate cut is consistent with our current economic assessment.
Impact on the cryptocurrency market
The cryptocurrency market is inherently risk-oriented and usually reacts positively to rate cuts. However, with the postponement of the expected rate cut, the initial reaction in the cryptocurrency space was clearly negative. Market analysts predict that this bearish sentiment may continue throughout the summer, but in the long run, future rate cuts may catalyze a potential bullish turn.
Analysis of direct impact
The postponement of the rate cut has injected a new round of uncertainty into the cryptocurrency market. Historical data shows that rate hikes or postponements usually lead to short-term volatility. A senior crypto analyst at a leading investment company pointed out that "the postponement of the expected rate cut has caused a significant drop in the price of Bitcoin, reflecting investor sentiment. ”
Long-term prospects for cryptocurrency investors
Despite the negative short-term reaction, experts are cautiously optimistic about the long-term outlook. The expected rate cuts are considered inevitable and could drive a significant rise in the cryptocurrency market once they occur. Hedge fund managers are already strategizing for a potential uptrend, counting on future rate adjustments to create positive momentum.
Recent U.S. economic data has led to adjustments in expectations for rate cuts, which has a significant impact on the cryptocurrency market. Investors should be prepared for short-term volatility, but should also be aware of the long-term positive effects that future rate cuts may bring.
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