Looks like interest rates will be rising in the United States later this year. Just when Wall Street investors were getting used to a long period of low borrowing costs, the president of the Federal Reserve Bank of St. Louis issued comments that strongly suggest higher rates are on the way.

As a result of the Fed commentary this week, cryptocurrency markets turned bearish with a heavy selling volume. Just when it seemed that Bitcoin would establish a line of support around $40K , traders executed their positions and retreated all the way down to $35K in a matter of two days. As usual, the rest of the major tokens such as Ethereum, Tether, and Ripple also took hits, thus bringing the market down with them.

Digital currencies were not the only trading instruments that felt the pain of the Federal Reserve commentary. On Wall Street, institutional investors were in a selling mood as well, erasing gains that had accumulated as a result of the American economy starting to emerge from the impact of the coronavirus pandemic. The NASDAQ and the Dow Jones Industrial Average lost ground over the two days when the Federal Reserve convened to provide macroeconomic analysis.

We are in a situation in which the Fed has failed to address the economic crisis and is now trying to manipulate the markets to suit itself. These recent Fed comments seem to reinforce that feeling, making it highly unlikely that we will see any meaningful rate hikes in the near future. It is very unlikely that there will be any rate increases for the next few years as a result of the Federal Reserve's comments.

We have seen other indicators that suggest that the current crisis has yet to be fully resolved. For example, it is unclear what will happen to the interest rates of investors and businesses when the next round of the Fed's bond and mortgage rate hikes hits. If you do decide to take part in the stock market this year, stay tuned for the market's response as it comes. The same can be said of cryptocurrency trading, which may not be as bullish as earlier this year.