CoinDesk reported that financial markets have virtually priced in a 25bp interest rate hike by the US Federal Reserve (Fed) Federal Open Market Committee (FOMC) in September, with some possibility of further tightening this year also reflected. The outlet stated, "The current environment is like a nightmare for Fed Chairman Kevin Warsh," explaining that "if less hawkish remarks than market expectations emerge, the dollar's value could fall, while long-term treasury yields could rise due to inflation and US debt concerns. While selling pressure may appear on risk assets in the short term, it could later become a boon for Bitcoin and gold." It added, "Investors may still perceive the Fed's monetary policy as dovish, anticipating further rate hikes, and confidence in the Fed's ability to respond to inflation may also weaken." In this scenario, analysis suggests that Bitcoin could gain attention as a store of value to avoid currency depreciation and treasury risks, potentially rising after an initial sell-off.
