NewsletterWhy The Crypto Market Outlook Just Became Grimmer?
The Federal Reserve continues to create a restrictive macroeconomic environment. While the crypto market has not reached new lows, it has struggled to break from the unfavorable economic woes. Moreover, it appears that the outlook for the crypto market just got a lot grimmer. Raphael Bostic, the president and CEO of the Atlanta Fed, reveals that the fight against inflation is still in its early stages.
Bitcoin prices continue to be in the $19K-$20K range. It is currently trading at $20,214. Ethereum has failed to return to its pre-merge level. It is currently trading at $1366.
Meanwhile, OPEC+ has decided to cut oil production to spike petroleum costs. It can also result in higher inflation.
How The Fed Controls The Crypto Market Outlook
The Federal Reserve is responsible for controlling abnormal macroeconomic conditions by controlling the money supply. Due to soaring inflation levels, the Fed is restricting the money supply through interest rate hikes and quantitative tightening.
The Fed’s hawkish stance has caused a massive selloff in the crypto market. However, according to Bostic, the Fed is still in the early stages of its fight against inflation. He believes that the Fed needs to increase interest rates by another 150 bps before the end of the year.
The Organization of Petroleum Exporting Countries has also agreed to cut oil exports to cause a price surge. High energy costs can cause soaring inflation levels in the US. President Joe Biden claims that OPEC+ has decided to support Russia’s cause in the war against Ukraine.
Mary Daly, the President, and CEO of the San Francisco Fed also believe that more interest rate hikes are necessary.
Is The Fed Underestimating A Recession
The Bank of England pivoted to quantitative easing to stabilize the UK’s economy. The World Bank and the United Nations have warned the central banks about an impending recession.
However, it is unlikely that the Fed will pay attention to the cautionary warnings regarding the recession
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- $12T Charles Schwab to Launch Bitcoin and Ethereum Trading in Early 2026, CEO Confirms
- Senator Tim Scott Floats December 17 and 18 For Crypto Market Bill Markup
- BlackRock CEO Larry Fink Admits He Was Wrong on Bitcoin as IBIT Hits New Milestone
- Crypto Platform Polymarket Relaunches in U.S. Following CFTC Approval
- December Fed Rate Cut Prospects Strengthen After ADP Shows Deepening Labor Market Weakness
- Dogecoin Price Holds $0.15: Bullish Reversal or Just a Temporary Bounce?
- Sui Price Surges 10% As Vanguard Group Adds SUI to Bitwise 10 Crypto Index
- Bitcoin Price Prediction: Will Next Bull Run Push BTC to $100,000?
- Pepe Coin Price Risks 80% Crash as Alarming Pattern Forms and 6.5T Inflows
- Chainlink Price Surges 20%: What’s Driving Massive Upswing?
- Solana Price Poised for 25% Rally as ETF Inflows Surge Past $650M
