Recently, Federal Reserve official Kashkari's remarks have attracted market attention. He pointed out that the central bank faces an almost irreconcilable dilemma between fighting inflation and maintaining economic growth. This signal is subtle but profound — officials are hinting that future rate hike cycles may be more complicated than market expectations.

For the crypto market, this is not good news. Once the Federal Reserve continues to adopt a tight monetary policy to combat inflation, risk assets like Bitcoin and Ethereum are bound to come under pressure. Investors are generally concerned that the rate hike cycle may be extended, which would raise risk-free yields and further squeeze the valuation space for digital assets. In the short term, such policy shifts could continue to dampen overall market sentiment in the crypto space.