Cryptocurrencies are experiencing a significant decline as traders prepare for the upcoming release of the Fed's FOMC meeting minutes and Jerome Powell's speech at Jackson Hole. Bitcoin fell 3.2% to below $114,000, while other cryptocurrencies such as Ether and XRP also saw sharp declines. The article outlines eight reasons why a rate cut in September seems unlikely, including potential tariff impacts and persistent inflation pressures. Companies that have absorbed tariff costs may soon pass these to consumers, risking inflation. Although the U.S. economy shows mixed signals with slowing job growth and resilient consumer demand, uncertainty surrounding tariffs increases the likelihood of a hawkish stance from the Fed. Additionally, historical precedents regarding tariffs and inflation suggest caution. The upcoming economic data releases could further signal the need for the Fed to maintain rates, impacting liquidity and potentially worsening the current crypto sell-off if Powell signals a cautious approach.

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