Bitfinex Alpha: The volatility of cryptocurrency market will increase, and the Federal Reserve is expected to raise interest rates further

It is reported that, according to Bitlinex Alpha, after more evidence showed that inflation accelerated again in February and consumer spending was strong, the possibility of interest rate increase in the United States continued to envelop the market. As investors reassessed their expectations, the S&P 500 index fell by half of its gains in January last month. In January, the bond market was initially optimistic that the Federal Reserve would soon suspend raising interest rates. Now it has also changed its view on raising interest rates. Although Bitfinex Alpha expects more interest rate hikes, the monetary policy tightened by the Federal Reserve since last year began to have an impact on the economy.

Interpretation of this information:

The message reports that due to growing evidence of inflation acceleration and strong consumer spending in February, the possibility of an interest rate increase in the United States has continued to loom over the market. As a result, investors have reevaluated their expectations and the S&P 500 index has fallen by half of its gains from January. Despite initial optimism that the Federal Reserve would suspend raising interest rates, the bond market has also changed its view on the matter. Bitfinex Alpha predicts further interest rate hikes, however, the Federal Reserve’s tightened monetary policy since last year is beginning to impact the economy.

The message highlights the impact of inflation acceleration on the US economy and the potential implications of the Federal Reserve’s monetary policy on the market. As consumer spending remains strong, the possibility of an interest rate hike may put a strain on the economy, leading to reduced investments and overall economic slowdown. While Bitfinex Alpha predicts more interest rate hikes, the consequences of such a move are yet to be fully understood.