Declaration of "pigeon" from the Fed raises the hope of recovery for Bitcoin and Altcoin
The cryptocurrency market may be about to witness a strong recovery after a sudden speech from a senior official of the US Federal Reserve (Fed), creating a new optimistic wave in investors.
🗣️ Fed refers to interest rates in July
In a recent speech, Governor Fed Christopher Waller revealed that the central bank could start cutting interest rates as soon as the July session, when he realized that the economy was slowing down and the risk of inflation from new tariff policies would be temporary.
"I believe that the current interest rate is 1.25% to 1.5% higher than neutral. We have room to reduce, then observe the reaction of inflation," Waller said.
This is an important signal after the Fed has just decided to keep the interest rate in the area of 4.25% - 4.50% at the last meeting and show that there may be two more cuts at the end of the year.
🇺🇸 Political pressure from Trump and compare with ECB
Waller made a comment in the context that the Fed is under increasing pressure from former President Donald Trump, who called on the Fed to reduce rates strongly, on the grounds that the European Central Bank has lowered interest rates to eight times last year to support economic growth.
📈 Electronic market reaction: A big push for Bitcoin and Altcoin
If the Fed really enters the interest rate reduction cycle, this may be a strong catalyst for Bitcoin and Altcoin like Ethereum, Solana or Cardano. In the past, digital assets have grown strongly when the monetary policy is loose-especially the CIVID Pandemic period in 2020-2021.
💼 Wall Street is speeding up Crypto
On-chain data and ETF cash flow show that organizational investors are gradually catching the new policy trend. Specifically:
Spot Bitcoin ETFs have attracted US $ 389 million in the fourth day, bringing the total cash flow in the month to US $ 2.28 billion, and $ 46.65 billion accumulated from the launch.
Similarly, the Ethereum ETF has sucked nearly US $ 1.5 billion in the past three months, bringing a total cash flow of up to US $ 3.9 billion.
These are the numbers that show that the capital flow is strongly pouring into the crypto market - a positive signal for prices in the medium term.
📉 The supply decreases on the floors - the signal increases strongly
The cash flow into ETF funds and the amount of Bitcoin and ETH on the exchanges decreased significantly, reducing the pressure of selling and creating opportunities for a potential price increase.
🧭 Conclusion: Fed is soft, crypto to the throne?
Christopher Waller's statement not only marks a change in policy views, but also arouses the expectation that the low interest rate environment is about to return - something that the cryptocurrency market always responds positively.
If the Fed actually acts like it is referring to, resonating with the positive organization and psychological cash flow, Bitcoin and altcoin may be entering a strong recovery phase in the second half of 2025.
