At the latest Fed meetings, it was decided to keep interest rates at the same level. This caused a stir in the cryptocurrency community. Let’s examine the main events and their impact on the market.
Fed Keeps Interest Rates Unchanged
Chairman Jerome Powell stated that rates remain stable despite ongoing inflation. This decision was not a surprise for traders, but expectations for a rate cut persist. Potential changes could occur at upcoming meetings in July, September, October, and December. Thus, the market remains in a 'wait-and-see' mode.
Trump Criticizes Powell and Backs Crypto
Donald Trump criticized Jerome Powell, calling him 'too-late Powell' and proposed a significant rate cut. In his remarks, he emphasized his support for digital assets. Trump sees cryptocurrencies as the future and contrasts his stance with the current administration. Meanwhile, Bitcoin is experiencing consolidation in the market.
Stablecoins Take Center Stage
Treasury Secretary Scott Bessent spoke in defense of the role of stablecoins in the U.S. economy, claiming they could strengthen the dollar. He noted that dollar-backed stablecoins could facilitate financial access in other countries. Moreover, a stablecoin bill has already passed in the Senate and could pave the way for clearer regulation of the crypto industry.
Therefore, the Fed meeting was not a disaster for the cryptocurrency market, but it also did not provide the impetus that bullish sentiments were hoping for. Politicians are becoming more active in discussing cryptocurrencies, and regulation is slowly taking shape.
