Federal Reserve Bank of San Francisco President Mary Daly has hinted at potentially fewer rate cuts this year, citing inflation’s persistent presence as a key factor. While she remains optimistic about the U.S. labor market and anticipates two cuts in 2023, any further adjustments will depend on inflation trends and economic growth, with Daly emphasizing a gradual approach to interest rate changes. This uncertainty has impacted digital asset markets like Bitcoin, causing liquidity concerns and influencing risk appetite. Despite short-term volatility, large Bitcoin holders are increasing their positions, indicating cautious optimism in the cryptocurrency market.