Boston Federal Reserve Bank President Susan Collins said on Saturday that she tends to oppose the Federal Reserve lowering interest rates next month. Collins pointed out that the central bank still faces persistent risks regarding inflation and employment targets. In a press conference, she stated, "There are reasons to hesitate about lowering short-term borrowing costs at the Federal Open Market Committee meeting on December 9-10." She added, "Given the current economic conditions, after lowering rates by 50 basis points in September and October, the current policy seems slightly tight, which is appropriate."
This means that the US dollar interest rates may remain high, putting pressure on cryptocurrencies in the short term: investors may reduce their allocation to risk assets, leading to increased volatility in the crypto market and a decrease in trading volume. The long-term impact still depends on inflation trends and institutional investor strategies. In a high-interest-rate environment, the short-term attractiveness of cryptocurrencies decreases, but they may still be seen as a hedge against inflation.