"Seriously, the interest rate will not be cut this year, it's not good like that."
Michelle W. Bowman, the Governor of the Federal Reserve (Fed) declared that indeed considering a cut in interest rates in 2024 is too early amid investors being nervously waiting for 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 no doubt that the Bank of England (BoE) is considering interest rate cuts due to its recent drop in inflation to 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, Bowman's statement indicated that interest rate cuts are unlikely to happen until 2025 as borrowing costs remain relatively high, potentially restricting the flow of investment into the crypto market.
BTC's recent Relative Strength Index (RSI) hitting 28 usually signals oversold conditions and a potential 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.