The cryptocurrency market is directly affected by global markets, making statements from Federal Reserve officials critically important. Today, three significant figures, including Federal Reserve Vice Chairman for Supervision Michael Barr, Federal Reserve Board member Philip Jefferson, and Dallas FED President Lorie Logan, have made important announcements.
Statement from FED Members
Dallas FED President Lorie Logan was the first to emphasize the inflation problem is far from over, pointing out that the rate hike campaign by the FED may not pause in June due to insufficient cooling of the inflation. She emphasized the following:
Upcoming economic data could suggest that it would be appropriate not to change the interest rate at the June meeting. However, we have not yet achieved as much improvement and progress in inflation as we need. We have a long way to go to reach a 2% inflation target.
Logan stressed that inflation is still too high and ensuring price stability is critically important. She underscored this as the most vital factor and added that the banking data are currently coming at the rate the FED desires.
Jefferson, on the other hand, stated that all factors would be considered for monetary policy, and steps would be taken in monetary policy accordingly. After emphasizing that inflation is very high, he mentioned that some precautionary processes have been slowed down. According to Jefferson, the one-year period to feel the impact of interest rate increases is not enough, and more time may be needed. Logan made a similar statement, expressing concerns about whether inflation is falling as fast as desired. Finally, she mentioned that the current data are not sufficient to halt the rate hikes, hinting at the continuation of increases. She explicitly underlined that there would be another rate increase in June.
Bad News for BTC
This situation implies a continuation of the downtrend or sideways movement for the leading cryptocurrency, Bitcoin. Bitcoin, which has an inverse relationship and correlation with DXY, might continue facing difficult days with the new rate increase expected in June. The data coming from the U.S. seem likely to continue affecting the cryptocurrency market for a while.
