Recently, the market has been a bit sluggish, and the underlying reasons are worth a deep dive.

According to the latest released Federal Reserve meeting minutes, participants in this meeting raised a common concern—the risk that the current high inflation could become entrenched and turn into a long-term stubborn problem. What does this mean? Simply put, the Fed has become more cautious about the continued rise in prices.

What’s more concerning is that attendees also hinted that further rate cuts might be misinterpreted by the market, or even understood as the Fed wavering on its 2% inflation target commitment. This creates a dilemma: on one side, the market expects more liquidity stimulation; on the other side, policymakers need to stabilize inflation expectations. When these two forces pull in opposite directions, BTC and other assets naturally lack the momentum to push higher.

In other words, as long as this macro uncertainty persists, it will be difficult for the market to experience a strong upward rally in the short term.