Bitcoin's price fell to a session low of just below $113,000 after comments from Cleveland Fed President Beth Hammack indicated that the current economic data does not support lowering interest rates. Hammack emphasized that inflation remains too high and suggested that a rate cut would not be justified in the near future. This statement reflects the Fed's hawkish stance, which could hinder bullish sentiment in the crypto markets. Just a week earlier, Bitcoin had reached an all-time high above $124,000 amid expectations of an imminent rate cut, which have since declined significantly. Current market sentiment is impacted by these comments as traders recalibrate their expectations ahead of Fed Chair Jerome Powell's keynote speech at the Kansas City Fed's Economic Symposium. As it stands, the likelihood of a rate cut in September has dropped from nearly 100% to 71%, causing Bitcoin to plummet nearly 10% within the week. Hammack's views suggest the Fed's current policies may remain unchanged for the foreseeable future, keeping inflation concerns at the forefront of monetary policy discussions.

Source 🔗