Collins' Warning: Inflation's Persistence May Trigger Rate Hikes, Impacting BTC

Boston Fed President Susan Collins has weighed in on the US Federal Reserve's (FED) monetary policy, sparking interest among market observers. In a recent article published on the official Boston Fed website, Collins emphasized that if inflation does not continue to fall, the FED may need to raise interest rates soon. She stated that 'inflation is still very high' and expressed concerns about price stability.

Collins noted that while the US economy was growing at a pace close to its trend, and the labor market was generally stable, inflation remaining above the Fed's 2% target for more than 5 years was a significant cause for concern. She also warned that energy prices, developments in the Strait of Hormuz, new tariffs, and strong economic growth could pose upside risks to inflation.

Market experts believe Collins' statements have significant implications for Bitcoin (BTC). They note that she is not saying 'the Fed will definitely raise interest rates,' but rather making the rate hike conditional on the absence of a sustainable decline in inflation. Two scenarios stand out for Bitcoin in the coming period: if inflation remains high, the FED may become more hawkish, and Bitcoin may remain under pressure; if inflation continues to fall, expectations of interest rate hikes may weaken, and macroeconomic pressure on Bitcoin may lessen.