Another day passes with Bitcoin $79,292 lingering below $97,000. During the writing of this article, Fed’s Bostic made remarks indicating that tariffs could directly impact prices. Minutes from recent meetings revealed that some Fed members suggested halting balance sheet tightening. What are experts expecting from this situation?
Interest Rates, Markets, and Cryptocurrency
The Federal Reserve began cutting interest rates rapidly, but then abruptly halted these reductions. This pause has led to expectations that there may not be significant cuts for almost another year, with forecasts suggesting just one to two cuts for 2026. Such monetary constraints could hinder the performance of cryptocurrencies, which have been negatively affected by these concerns.
In recent meetings, some Fed members proposed stopping or even reversing the balance sheet contraction. This development would be quite favorable for cryptocurrencies. However, as of the article’s writing, Bostic noted that some further tightening of the balance sheet might still occur.
Crypto Predictions from Market Observers
The macroeconomic landscape appears complex, yet intriguingly, U.S. indices do not face significant losses while cryptocurrencies are severely weakening. This discrepancy may be attributed to rapid emotional fluctuations in response to market conditions and shallow liquidity that can easily manipulate order books.
For those who have been in the crypto space for over five years, they understand that such periods eventually come to an end, leading to rallies that seemed unlikely. Recently, Miles Deutscher noted that the bleak Solana $107 memecoin situation appears to be diminishing.
“In the last 24 hours, net flows have bridged from Solana to EVM networks, like Ethereum
$1,555, Arbitrum, Base, and Avalanche. When the music slows down at one place, people will seek opportunities elsewhere and begin trying other networks.”
Anbessa predicts that Bitcoin’s market dominance may begin to decline, allowing altcoins to rise. Previous predictions of decline were met with slight retracements and subsequent increases in Bitcoin’s dominance.
Ether’s rise is considered a crucial trigger for the recovery of altcoins. In a recent assessment, Daan Crypto Trades remarked:
“The $2,800 level remains challenging to surpass, yet the price is consolidating and gradually rising. This yellow diagonal serves as essential support; otherwise, a test around $2,400 is likely.”