Renowned cryptocurrency analyst Michaël van de Poppe recently addressed the ongoing downturn in the cryptocurrency market and shed light on the underlying reasons. Describing Bitcoin’s price action as “terrible,” he highlighted how this has negatively impacted altcoins. Van de Poppe linked this decline to various macroeconomic events that transpired in the past week.
The release of the Consumer Price Index (CPI) data last Wednesday played a crucial role in influencing the Federal Reserve’s decision on interest rates. The data, which came in lower than expected, was seen as favorable for risky assets. Similarly, the Producer Price Index (PPI) data, which provides inflation insights from the producer’s perspective, also had a positive impact on risky assets, as it fell below expectations.
Van de Poppe emphasized the importance of Jerome Powell’s recent hawkish speech, noting that all signs point towards a potential recession and the necessity of an interest rate cut. With economic data showing signs of deterioration and the US government’s increasing debt burden, an interest rate reduction seems imminent, especially given the upcoming election year.
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