Grayscale: If inflation remains high, the Federal Reserve may delay interest rate cuts until later this year or 2025

In its February report, Grayscale pointed out that recent US inflation has slowed down, and the market is beginning to anticipate higher inflation. If inflation remains high, the Federal Reserve may delay interest rate cuts until later this year or 2025. Rising US interest rates may be beneficial for the US dollar but could be detrimental to Bitcoin.

Grayscale analysts believe that the most likely scenario is for US inflation to continue declining, eventually prompting the Federal Reserve to cut interest rates. However, cryptocurrency investors need to closely monitor upcoming inflation reports and policy guidance at the next Federal Reserve meeting.