Gray Report: stubborn inflation and rate cut delays may hamper cryptocurrency valuations

Accelerating U.S. inflation over the last month and the reduced likelihood of a Federal Reserve interest rate cut are the main reasons why cryptocurrency prices may be hindered in the future, Grayscale analysts said in a report. The report reads, "One of the key lessons from the last crypto cycle is that macro factors (e.g., Fed monetary policy and the state of the economy) can severely impact the valuation of crypto assets. A less favorable macro outlook could dampen valuations. If inflation remains high, Fed officials may consider delaying interest rate cuts until later this year or 2025, and in general, rising U.S. interest rates may be good for the value of the U.S. dollar, but may be bad for bitcoin."