"Seriously, the interest rate will not be cut this year, it's not good like that."
Michelle W. Bowman, Governor Federal Reserve (Fed) declares indeed considering an interest rate cut in 2024 is too early amid investors are anxiously awaiting several data releases this week.
The statement was made ahead of the United States (US) Gross Domestic Product (GDP) data for the first quarter to be released on June 27 tomorrow, then Personal Income, Personal Expenditure and US PCE inflation scheduled to take place on Friday.
It is not denied The Bank of England (BoE) is considering cutting interest rates due to its recent drop in inflation at 2%, but the US is unlikely to reflect that approach.
Higher interest rates usually lead to a strengthening of the US dollar which can put significant selling pressure on cryptocurrencies , while lower rates usually support digital asset price inflation as investors seek higher returns in risky markets.
However, statements given by Bowman indicate that interest rate cuts are unlikely to happen until 2025 Borrowing costs that remain relatively high have the potential to restrict the flow of investment into the crypto market.
BTC's recent Relative Strength Index (RSI) hitting 28 usually signals the situation oversold and potentially rebound, but the lack of an expected interest rate cut has fueled concerns about prolonged crypto market turmoil.
However, altcoins such as Ethereum (ETH), Solana (SOL) and Dogecoin (DOGE) are showing resilience even as BTC declines as fears of a crypto crash increase as the Fed maintains a hawkish stance on interest rate cuts.
