Crypto will go down — if the Fed does not lower the rate
After the Fed chair's speech, the stock market fell in a day: Nasdaq –3%, S&P 500 –2.2%
And crypto? Stays still. The calm before the storm?
Powell said:
"Inflation may pick up. We are not sure it's time to lower rates."
Translating from central bank language:
The Fed is not turning on the printing press, but is also not tightening screws further.
The economy and markets are in a "pause" mode.
What does this really mean for the market?
1. Investors are watching the Fed rates (interest rates): High rates = expensive loans → less money in circulation. Low rates = cheap money = more investments.
2. The Fed is not lowering the rate — which means:
* The economy is unstable
* Risks are high
* There will be no influx of "cheap" money (liquidity)
3. The reaction to this:
- Investors start to exit risky assets
- and risk is precisely crypto, stocks
- Money flows into bonds, the dollar, gold
That is:
If the Fed keeps rates high until the end of 2025 — many will temporarily exit crypto to avoid a downturn. And then they will re-enter. But at more favorable levels.
I am not panicking. BTC has shown multiple times how it bounces back after turbulence. So I am waiting for my entry point #PowellRemarks $BTC
After the Fed chair's speech, the stock market fell in a day: Nasdaq –3%, S&P 500 –2.2%
And crypto? Stays still. The calm before the storm?
Powell said:
"Inflation may pick up. We are not sure it's time to lower rates."
Translating from central bank language:
The Fed is not turning on the printing press, but is also not tightening screws further.
The economy and markets are in a "pause" mode.
What does this really mean for the market?
1. Investors are watching the Fed rates (interest rates): High rates = expensive loans → less money in circulation. Low rates = cheap money = more investments.
2. The Fed is not lowering the rate — which means:
* The economy is unstable
* Risks are high
* There will be no influx of "cheap" money (liquidity)
3. The reaction to this:
- Investors start to exit risky assets
- and risk is precisely crypto, stocks
- Money flows into bonds, the dollar, gold
That is:
If the Fed keeps rates high until the end of 2025 — many will temporarily exit crypto to avoid a downturn. And then they will re-enter. But at more favorable levels.
I am not panicking. BTC has shown multiple times how it bounces back after turbulence. So I am waiting for my entry point #PowellRemarks $BTC
