Crypto investors are facing new challenges following Bank of America’s announcement and the postponement of interest rate cuts by the Federal Reserve.
Bank of America’s Interest Rate Statement
Bank of America CEO Moynihan stated that there will be no interest rate cuts this year or next. He also expressed doubts about regulatory changes and suggested that private lending could pose risks in the current economic climate.
Tariff Concerns and Their Impact
Mexico’s President plans to sign a customs agreement with the U.S. by Tuesday, but the real concern lies in Trump’s expansion of the trade war to the EU and China. China has responded to strengthen its position, prolonging negotiations over months.
Inflation and Cryptocurrency Consequences
With the rise in short-term inflation, the risk for cryptocurrencies increases. FedWatch’s interest rate forecast has adjusted, Treasury yields dipped to 4.33%, and Chinese stocks have weakened. Upcoming consumer confidence data at 18:00 may cause volatility.
While crypto markets remain in a state of uncertainty, the lack of promised rate cuts adds complexity for investors.
