Grayscale Report: Stubborn Inflation and Rate Cuts Delay or Hinder Rise in Cryptocurrency Valuations
Grayscale analysts stated that last month's acceleration of inflation in the United States, as well as the likelihood of a Fed rate cut, are the main reasons that could hinder the rise of cryptocurrency prices in the future.
The report stated: "An important lesson from the last cryptocurrency cycle is that macro factors (such as Fed monetary policy and economic conditions) may significantly affect the valuation of cryptocurrency assets. Unfavorable macro prospects may suppress valuation. If inflation remains high, Fed officials may consider delaying rate cuts until later this year or 2025. Generally speaking, rising US interest rates may be favorable for the value of the US dollar, but may be unfavorable for Bitcoin."
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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