JPMorgan sees Fed's next move an interest-rate increase, crypto bulls talk about cuts

JPMorgan has predicted that the Federal Reserve will keep interest rates unchanged this year, followed by an increase next year. This forecast is crucial for traders looking for indicators of future monetary policy. With inflation remaining high, the likelihood of a rate hike from the Fed is increasing. Conversely, there are traders in the cryptocurrency market suggesting the possibility of rate cuts, which could create confusion regarding market trends. An rise in interest rates typically leads to selling of risk assets, including cryptocurrencies, indicating potential adverse effects. Market participants may have to reassess their positions ahead of any Fed policy announcements. This backdrop may lead to varied market reactions.