John Williams, President of the New York Fed, shared predictions about gradual interest rate declines and potential inflation increases due to tariffs.
John Williams' Rate and Inflation Forecast
John Williams announced the expected **gradual decline in interest rates** based on economic performance. He mentioned a potential **rise in inflation by 1.00% to 1.50%** due to tariffs, though this effect has not yet significantly influenced long-term expectations. Additionally, he indicated that **unemployment may rise to approximately 4.5%** next year, with an inflation forecast of **3% to 3.25% by 2025**.
Monetary Policy Impact on Cryptocurrencies
Coincu analysts indicate that Fed policies targeting inflation and interest adjustments can significantly affect cryptocurrency valuations. Historically, capital flows into high-risk assets tend to increase during Fed rate cut cycles, benefiting cryptocurrencies during periods of monetary easing. Bitcoin is viewed as an inflation hedge, which also supports resilience in crypto markets.
Market Expectations and BTC Dynamics
Currently, **Bitcoin (BTC)** is trading at **$110,569.70** with a market cap of **$2.20 trillion** and a **dominance of 57.91%**. Recent data shows a **1.39% price drop in 24 hours** and a **5.96% increase over 90 days**. Furthermore, the trading volume has decreased by **4.82% in 24 hours**, indicating moderate market shifts.
John Williams' predictions should be taken into account when analyzing the market, as expected changes in monetary policy may significantly impact all assets, including cryptocurrencies.
