Crypto markets are under pressure due to diminishing expectations for interest rate cuts and concerns regarding upcoming statements from the Fed.
Prospect of Fed Interest Rate Cuts
Analysts believe recent statements from Hammack highlighting that "tariffs trigger inflation increases and reduce the likelihood of interest rate cuts" raise uncertainty in the market. The forecast for rate cuts in September has diminished to 61%.
Current State of Bitcoin and Altcoins
Bitcoin continues to decline and reached a 24-hour low of $112,015. Analyst Altcoin Sherpa expects a recovery, indicating the $110,000-$112,000 range as potentially favorable. Another analyst, Poppe, emphasizes that "brave times are approaching" and advocates accumulating at lower price levels.
Investment Decisions in Current Conditions
For investors with medium to long-term goals, the situation could be more positive considering potential ETF approvals and sustained demand. However, short-term investors should prepare for potential further price declines that may lead BTC to five-digit levels.
Crypto markets are in a challenging situation with many uncertainty factors. Investors should consider their goals and risks before making investment decisions.
