Crypto traders are beginning to lower their expectations for aggressive Fed rate cuts, even though some experts believe Kevin Warsh could take a more dovish stance if he steps into a key role. This shift shows that the market is no longer confident about how quickly monetary easing will happen in the U.S.
That uncertainty around interest rates and Fed direction is creating hesitation across financial markets and crypto is feeling it too. When traders aren’t sure whether liquidity will increase or stay tight, volatility tends to rise as positions get adjusted.
