Amid rising inflation and uncertainty in the United States, the market has sensed a wave of fear. This affects cryptocurrencies, leading to new expectations and forecasts.
Inflation on the Rise
Inflation increased by half a point this month, marking the largest rise since August 2023. Prices on goods have risen due to tariffs imposed by Trump, creating alarming forecasts for 2025.
2025 Expectations
Post-data, the market predicts only one interest rate cut in October 2025. There is a possibility that rates will remain unchanged until the end of 2026. The impact of tariffs could significantly influence inflation, raising average rates by more than 20% - the highest level in 30 years.
Impact on Cryptocurrencies
Under the pressure of rising inflation, risk markets, including cryptocurrencies, remain vulnerable. Conditions can change rapidly, as they did when the Fed aggressively cut rates last year.
Market changes pose new challenges for investors. Rising inflation may have a significant impact on the economy, including the crypto market.
