Today was a critical day for cryptocurrencies and things were not going well. of cryptocurrencies It does not work in his favour. The decline accelerated today for a few different reasons. BTC is setting its new daily bottom at the time of writing. Today’s Supreme Court hearing, especially regarding the dismissal of the Fed member, was extremely important.
Why Are Cryptocurrencies Falling?
We mentioned that investors should pay attention to 18:00 today. The expected happened and the process went in Cook’s favor. crypto coins pulled down. The US Supreme Court appears inclined to reject Trump’s request to immediately remove Fed Chairman Cook. The fact that Powell also testified in support of the hearing affected the sentiment even more negatively. With the decision likely to be in favor of Cook, the independence of the Fed will be protected by the judiciary, and this will support the prediction of a maximum of 2 interest rate cuts for 2026.
At the time the article was being prepared, White House Senior Advisor Hassett had just completed his important statements. Hassett, one of the brains of Trump’s economic policy, said;
“Trump is in Davos to lay out the truth with data. His big housing policy announcement is coming soon.
Fed members seem to want to have an opinion on everything. We expect to further reduce the budget deficit over the next year. I don’t think we’re bringing our allies closer to China.
Trump is disrupting an order that needs to be disrupted.
“We could see GDP growth of over 5% for two quarters.”
Denmark just announced that it has rejected Trump’s request for talks on its takeover of Greenland. Trump said he would not use excessive force and that urgent talks should be held.
- Trump’s insistence on Greenland.
- The USA and the EU made mutual harsh statements regarding Greenland.
- With employment data coming in better than expected, the possibility of a January interest rate cut will be reduced to zero.
- Powell’s support for Cook’s lawsuit challenging his dismissal.
- Powell’s statement the previous week that “I am being sued for not reducing interest rates”.
- Supreme Court hearing proceeds in favor of Cook.
- Mutual customs duties will be put into effect between the USA and the EU on February 1.
- Major European pension funds selling billions of dollars of US bonds due to “Trump’s unpredictability”. This essentially came as a reaction to the Greenland insistence.
When all these reasons come together cryptocurrencies It is rightfully in decline.
