Renowned cryptocurrency analyst Michaël van de Poppe recently delved into the current downturn in the cryptocurrency market and shared his insights on the reasons behind it. Describing Bitcoin’s price action as “terrible,” he highlighted how this downward trend has adversely impacted altcoins. Van de Poppe attributed this situation to various macroeconomic events that unfolded last week.
The Consumer Price Index (CPI) data released last Wednesday played a significant role in influencing the Federal Reserve’s decision on interest rates. The lower-than-expected data supported risky assets, paving the way for a potential rate cut. Similarly, the Producer Price Index (PPI) data indicated positive outcomes for risky assets, further hinting at a potential interest rate reduction.
Van de Poppe emphasized Jerome Powell’s recent hawkish speech, noting that the data trends point towards an imminent recession. He stressed the importance of an interest rate cut, particularly in election years, as the US government’s mounting debt poses additional financial challenges.
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