The main cryptocurrencies have reversed night losses, and analysts claim that Wednesday’s decision stressed President Trump’s growing influence on the Central Bank, strengthening the long -term upward case for cryptography.
The Fed maintained the stable reference interest rate by 4.25% as expected, and President Jerome Powell decreased the perspectives of renewed rate cuts in September, emphasizing that the Central Bank focuses on controlling inflation, not on government loans or the costs of the housing mortgage that Trump wants to reduce.
Powell’s comments shook the cryptographic market, with Bitcoin (BTC) falling to $ 116,000. XRP, Ethher (Eth) and Solana (Sun) also fell, shaking the leverage bets of the futures markets.
These losses, however, have been reversed. At the time of writing this article, BTC was quoted at $ 118,400, with XRP and ETH changing the hands to $ 0.00314 and $ 3,870, according to Coindesk data. The Coendesk 80 index, a broader market meter, was around 915 points, 0.8% more in 24 hours.
Jimmy Yang, co -founder of Orbit Markets, said that Fed’s decision during the night revealed a threat to the independence of the Fed.
While the Central Bank maintained the stable rates, two policy formulators, vice president of the supervision, Michelle Bowman and Governor Christopher Waller, appointed for the Board by President Donald Trump, disagreed, favoring a tariff cut.
Trump has repeatedly criticized Powell for keeping interest rates and costing the United States billions of dollars. Keep in mind that both the wallet and Bowman have publicly defended by tariff cuts in recent weeks.
“There are increasingly greater concerns about the independence of the Fed, since two of Trump’s appointed voted for a feat cut last night; this should strengthen the case of long -term cryptography,” Yang told Coindesk.
He added that without an immediate tariff cut in sight, the market could continue to trade largely without direction, waiting for fresh catalysts: the launch of the Julio IPC.
“The CPI is likely to increase when tariffs are activated in the coming months. Cryptocurrencies could initially be sold together with broader risk assets. However, if inflation fears they persist, cryptography could recover as a coverage narrative, especially for Bitcoin,” said Yang.
Greg Magadini, director of Amberdata derivatives, said that although the Fed’s decision was in line with the expectations, the concerns about the independence of the Fed Delay.
“The biggest imminent question this year for the bond market is around the independence of Fed. Wednesday’s decision helped Fed defend its independence. Even so, if Powell is fired or begins to reduce rates too soon, I hope that hard assets (BTC, especially) join significantly. At the same time, inflation and bonds would probably lose a considerable value,” Magadini said. ” “Today, US credit markets trust Fed Independence.”
Magadini explained that the bond markets are staring at the price of long -term inflation, which weakens the case of rapid fire rate cuts at ultra low levels, as Trump wishes.
“We have seen that long link yields increase a lot from Trump’s elections.
This means that the bond market is staring on long -term inflation, especially since “real yields” are historically positive … if inflation remains where it is today, “Magadini said.
