U.S. Federal Reserve Chairman Jerome Powell delivered a prepared speech at a meeting in Dallas, Texas, indicating that the Fed has no intention of cutting interest rates in the short term. Powell pointed out: "The economy is not currently sending any signals that it is urgent to cut interest rates. The current resilience of the economy allows us to make more cautious decisions." This hawkish statement caught the market off guard and weakened expectations for an interest rate cut.
Bitcoin tumbles, followed by other major cryptocurrencies
Major cryptocurrency markets saw volatility following Powell's speech. Bitcoin (BTC) prices quickly fell 1.5% after Powell's comments, falling from $88,300 to $88,000, bringing the cumulative decline to 3.2% in 24 hours. Another major cryptocurrency, Ethereum (ETH), also saw similar losses. However, the CoinDesk 20 bucked the trend, rising 0.5% as ripple (XRP) rose 13%. There are market rumors that Securities and Exchange Commission (SEC) Chairman Gary Gensler may quietly resign due to Trump's election. This news may become a major factor driving the rise of Ripple.
Chances of interest rate cuts decline, market sentiment dampened
According to CME FedWatch data, market expectations for a rate cut by the Federal Reserve in December dropped sharply after Powell's announcement, with the probability of a rate cut plummeting to 62% from 83% the day before. Market sentiment has been suppressed as a result, and both cryptocurrency and traditional markets have been affected.
Under the influence of Powell's hawkish remarks, the traditional U.S. market also experienced shocks. The Nasdaq fell 0.75%, hitting its lowest point of the day at the end of the trading day, a sign of caution over uncertainty about future Fed policy.
Despite this, the cryptocurrency market has been performing strongly recently. Bitcoin is still up 15% in the past week, while crypto assets such as ADA, XRP, NEAR and XLM have risen between 20% and 40% in the past week, reflecting the market's resilience and investors confidence.
This article Fed Chairman’s hawkish remarks cool the cryptocurrency market, Bitcoin falls 2% first appeared on Chain News ABMedia.
