Analysis: The Fed’s rate cut has become a consensus in the crypto market, but the BIS warns that policy easing may trigger inflation again

Odaily Odaily News Market analysis believes that the consensus in the cryptocurrency market is that increased debt concerns will force the Federal Reserve and other central banks to cut interest rates, thereby stimulating more investors to flow into alternative assets such as Bitcoin. The Chicago Mercantile Exchange's FedWatch tool shows that traders expect the Federal Reserve to cut interest rates twice this year, by 25 basis points each time. However, the Bank for International Settlements said that premature easing of policies could reignite inflationary pressures and force costly policy reversals. In fact, the risk of inflation expectations de-anchoring has not disappeared, and pressure points still exist. In its annual report released on Sunday, it said: "Although financial market pricing currently shows only a small possibility of public fiscal pressure, confidence may collapse rapidly if economic momentum weakens and public spending is urgently needed in structural and cyclical aspects. Government bond markets will be hit first, but the pressure may spread more widely, as in the past." (Coindesk)