U.S. Federal Reserve (Fed) Chairman Jerome Powell issued a "hawkish" signal on Thursday, suggesting that "the U.S. economy is strong" and "the Fed does not need to rush to cut interest rates", suppressing market expectations for an interest rate cut in December. After the election The cryptocurrency market fell today (15th), with Bitcoin once falling below $87,000.
In a speech to business leaders in Dallas on Thursday, Ball emphasized that "the U.S. economy has not sent a signal that it urgently needs to cut interest rates" and "the resilience of the economy allows us to make decisions more cautiously." The market interpreted Ball's remarks as more hawkish, implying that "the U.S. economy is strong and there is no need to rush to cut interest rates."
The CME Group's FedWatch tool showed traders' expectations for a rate cut in December had slipped to 62% from 76% following Ball's speech, compared with a whopping 82.5% chance the day before.
Affected by this, the price of Bitcoin fell rapidly after Ball’s speech, reaching a minimum of $86,994. By the time of writing, it had regained $88,000, a drop of 2.4% in the past 24 hours.
Ethereum (ETH) also fell by nearly 4%, retreating to the US$3,000 mark; however, Ripple (XRP) bucked the trend and rose by 17.5%. The market speculated that this was related to the US Securities and Exchange Commission (SEC) Chairman Gary Gensler. Gensler may quietly resign due to Trump's election.
Ball's speech also affected traditional financial markets, especially the technology-heavy Nasdaq, which fell as much as 0.75% before closing.
Despite this, the overall cryptocurrency market remains strong, with Bitcoin still experiencing weekly gains of more than 16%, and popular competing currencies such as Cardano (ADA), Ripple (XRP), and SUI also recording weekly gains of 20% to 40%. The weekly increase of Dogecoin (DOGE) is more than 90%, showing that the market’s confidence in cryptocurrency is still strong.
"Fed Ball "throws cold water" on interest rate cuts! Bitcoin once fell below 87,000 US dollars, and Ethereum fell back to the 3,000 mark." This article was first published on (Block Guest).
