Despite skepticism from US Federal Reserve Chair Jerome Powell about further interest rate cuts this year, the altcoin market remained largely unchanged. Analysts have offered varying opinions on this.
Has the Market Priced It In?
Crypto analyst Matthew Hyland proposed the hypothesis that the market may have already priced in the uncertainty surrounding the Fed holding rates steady. This could explain the absence of significant sell-offs. "Markets are forward-looking; possible the market already sniffed this news out prior, hence the capitulation a week ago," he noted.
Split Opinions in the Crypto Community
There's a divide among crypto commentators on whether the Fed's restraint on quantitative easing will impact the chances for an 'altcoin season' in the near term. Trader Fejau expressed that "you don’t want zero rates and QE," as this could lead to short-term pains. Others, like Messari co-founder Dan McArdle, see moderately positive economic conditions as sufficient for a risk-on environment.
Outlook for the Near Future
Hartmann Capital founder Felix Hartmann pointed out that the market is near a bottom, as evidenced by negative funding rates and altcoins returning to long-term trendlines. Short-term prospects remain uncertain, yet some analysts remain confident in stabilization.
As the US Fed maintains its position, participants in the crypto market are divided on future developments. Analysts cautiously assess whether the altcoin market can continue to show resilience considering the current economic conditions.
