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An expert analyst warns that the cryptocurrency market may head for a downward correction in the short term as the market has not yet priced in the FED's possible interest rate cut postponement.
Bitfinex Head of Derivatives Jag Kooner argues that the market is currently pricing in the Fed to be more dovish than Chairman Powell's comments implied. Powell's latest comments warn that the delay in market pricing could trigger a downward correction for Bitcoin, as well as other cryptocurrencies and financial markets.
“If market expectations for a rate cut remain high and the next FOMC meeting results in a fixed rate, the cryptocurrency market may decline in the near term,” Kooner said. He added that Powell's signal that the rate cut would be postponed “potentially contributed to the risk-off sentiment in the market.”
According to BIT Mining Chief Economist Youwei Yang, there are other uncertainties in current market conditions that are contributing to this risk-off sentiment.
Related News: <a href="https://en.bitcoinsistemi.com/four-cryptocurrency-whales-have-become-active-in-the-last-hours-they-traded-high-volume-on-different-altcoins/" target="_blank" rel="noopener noreferrer nofollow">Four Cryptocurrency Whales Have Become Active in the Last Hours: They Traded High Volume on Different Altcoins</a>
“The delay in the rate cut, the reduced likelihood of a soft landing, and the dotcom bubble-type patterns seen in AI stocks have concerns that markets are currently turning into a risk-off sentiment, which could lead to a broad sell-off triggered by any new events such as CPI data,” Yang said.
Vertex Protocol Co-Founder Darius Tabai echoed these views, stating that there is still no clarity on when the interest rate cuts will come into effect. “For now, it doesn't make sense to see big moves in either direction given inflation and interest levels, as central bankers tend to move slowly in their analysis,” Tabai said.
*This is not investment advice.
 Continue Reading: <a href="https://en.bitcoinsistemi.com/analyst-warned-there-may-be-a-short-term-decline-in-the-cryptocurrency-market-due-to-the-fed/" rel="noopener noreferrer nofollow">Analyst Warned: “There May Be a Short-Term Decline in the Cryptocurrency Market Due to the FED”</a>

Analyst Warned: “There May Be a Short-Term Decline in the Cryptocurrency Market Due to the FED”

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