Simean Koch's analysis reveals the influence of the Federal Reserve's monetary policy on the altcoin market.
Fed Policy and Its Impact on Altcoins
Simean Koch pointed out that the tight monetary policy implemented by the Fed threatens the altcoin season. However, it does not completely extinguish hopes for the future. Historically, altcoin bull seasons are seen during low interest rates, and the current high rate significantly restricts their growth.
Trump's Opinion on Fed Chairman Jerome Powell
U.S. President Donald Trump continues to criticize Fed Chairman Jerome Powell. In his latest press conference, Trump stated, 'I don’t think he’s an intelligent person. I don’t think he’s a political person either. He doesn’t like me, I’ve both praised him and criticized him, but it didn’t work. He’s just stupid.' This statement illustrates the level of conflict surrounding monetary policy in U.S. politics.
Future of Altcoins in a High Interest Rate Environment
Simean Koch emphasized that the U.S. economy faces the risk of stagflation, which limits the Fed's actions. Furthermore, increasing pressure on small investors and dissatisfaction with domestic politics may negatively impact demand for altcoins. Despite this, Koch believes that the altcoin season is not over yet if the Fed lowers interest rates, which he thinks may occur in the future.
The situation in the altcoin market remains uncertain, but not all hopes for their growth are lost. It is crucial to monitor changes in Fed policy.
