Bitfinex Derivatives Head Jag Kooner explained the factor that could cause a decline in the cryptocurrency market.
Jag Kooner from cryptocurrency exchange Bitfinex says the impact of the US Federal Reserve on the cryptocurrency market negative He stated that it could be reflected. Fed President Jerome Powell’s latest statement regarding the postponement of the interest rate cut Claiming that it has not yet been priced in the markets, the experienced name argued that this situation brings with it the risk of decline.
In his statement at the end of January, Powell stated that inflation had not yet decreased as much as they wanted. March He emphasized that he did not foresee an interest rate cut in 2020. But despite these statements, most risk products, including the cryptocurrency market, continued to maintain strong price movement. Expectations of the FED May It is shaping up to be an interest rate cut in 2020.
Kooner included the following remarkable statements in the details of his statement:
The market is currently pricing in the Fed to be more dovish than Powell’s comments implied. But I think the postponement of the discount is still not priced in the market. If market expectations for a rate cut remain high and the next FOMC meeting also results in a pause, the cryptocurrency market could decline in the short term.