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Crypto investors are facing a challenging day, further darkened by recent developments. A new announcement from Bank of America adds to the discouragement felt by market participants. The Federal Reserve has postponed interest rate cuts this year, and further delays seem likely based on current data. While Trump advocates for rate drops, his policies are hindering declines in multiple ways.
Bank of America’s Interest Rate Statement
During a statement made by CEO Moynihan, he implied that those awaiting interest rate cuts are in for disappointment. According to him, there will be no rate reductions this year or even next year. The CEO also expresses skepticism about regulatory changes alongside government policies, suggesting that private lending could pose risks in the current climate.
Concerns Over Tariffs and Their Impact
Meanwhile, the President of Mexico announced plans to sign a customs agreement with the U.S. by Tuesday, yet the real concern lies in Trump’s expansion of the trade war to the EU and China. As China retaliates to strengthen its position, these negotiations are expected to last several months rather than weeks. This scenario undoubtedly increases risks for cryptocurrencies.
With the risk of short-term inflation rising accompanied by supportive recent data, FedWatch’s interest rate predictions have adjusted accordingly. Treasury yields have dipped to around 4.33%, while Chinese stocks have weakened. The upcoming consumer confidence data at 18:00 may cause some volatility.
