The crypto market is currently struggling due to the hawkish stance by the Federal Reserve (Fed) which has pushed the price of Bitcoin (BTC) to fall below the $20,000 level before bouncing back, while Ethereum (ETH) is showing sluggish growth.
Even so, the Fed's top official may have good news for the crypto community.
According to the President of the Atlanta Fed, Raphael Bostic revealed that actions in the fight against inflation could result in interest rates slowing down.
In reality, the crypto market declined due to the aggressive stance of the Fed for fighting inflation in the United States (US) with quantitative tightening measures and interest rate hikes to eliminate high inflation levels.
Meanwhile, the crypto market is worried because the previously dovish Fed members have started to shift to a more hawkish stance on inflation, even Fed Chairman Jerome Powell stated in his speech in Jackson Hole that the negative impact will happen to households and businesses which will make the market crypto crashed.
Due to the statement, the cryptocurrency market continued to decline as many experts began to fear that a 100 basis point interest rate hike was inevitable.
Contradictively, the opinion from Bostic could bring good news to the crypto market.
Additionally, the crypto market strengthened following the revelation that the US Consumer Price Index (CPI) in August was lower than expected including Personal Consumption Expenditure (PCE).
The justification is that if the next data also highlights the Fed's progress, a 50 basis point interest rate hike could be considered.
