Grayscale Research Head Jack Pans said the cryptocurrency market could face short-term pressure as the possibility of a Federal Reserve rate hike gains attention following the release of the U.S. August Consumer Price Index (CPI).
In a post on X on the 11th, Pans said elevated inflation could increase the likelihood of an additional Fed rate hike, describing it as a “speed bump” scenario for the cryptocurrency market.
However, he expected the market decline to be limited. He explained that if a correction occurs, it could provide a new entry opportunity for capital that missed the chance to invest during the August price surge.
U.S. August CPI rose 3.4% year over year and 0.4% month over month.