Mohamed El-Erian, President of Queens' College, Cambridge, commented on the current state of interest rates and inflation in the U.S. and their possible impact on the cryptocurrency market.
Influence of the Federal Reserve's Policy
On August 23, 2025, Mohamed El-Erian stated that the Federal Reserve should focus on the path of interest rates rather than individual meetings, given the ongoing inflation in the country. Ultimately, interest rate changes could significantly impact investor behavior regarding cryptocurrencies like Bitcoin and Ethereum.
State of the Cryptocurrency Market
According to CoinMarketCap data, Bitcoin (BTC) was trading at $115,740.55 with a market capitalization of $2.30 trillion. Its 24-hour trading volume reached $83.04 billion, a 42.28% increase. However, the price of Bitcoin decreased by 1.78% over the past week.
Expert Opinions
El-Erian noted: "If we were to establish an inflation target today, we wouldn’t choose 2 percent. Structurally, we would go for a higher target of 2.5 to 3 percent. The problem is that the Fed cannot explicitly change its inflation target because it has missed it for so long."
Experts from Coincu Research predict that if inflation remains high, significant financial changes could occur, leading to regulatory responses and technological advancements in decentralized finance.
Thus, the comments and actions of the Federal Reserve may lead to significant changes in cryptocurrency markets. Investors should monitor new economic data to understand potential shifts in cryptocurrency prices.
