Markets
Fed Chairman Jerome Powell Delivers Crucial Message to Cryptocurrency Markets
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Federal Reserve Chairman Jerome Powell book a crucial message that has important implications for cryptocurrency markets.
Powell spoke on a panel that included European Central Bank President Christine Lagarde and Brazilian Central Bank Governor Roberto Campos Neto.
Powell said the Federal Reserve The Fed has made “considerable progress” in its fight against inflation. However, Powell stressed the need for further evidence of sustained progress before considering any interest rate cuts.
The comments come as markets keep a close eye on the Fed, with inflation appearing to slow and other central banks, such as the ECB, beginning to gradually lower interest rates.
Earlier this year, investors anticipated at least six Fed rate cuts, each by a quarter point. Market prices were adjusted to reflect two cuts, one in September and one before the end of the year.
Cryptocurrency market reacts
Crypto markets, known for their sensitivity to macroeconomic indicators, have been particularly attentive to Powell’s remarks. Bitcoin has fallen 3.36% in the last 24 hours to $60,349.
Several cryptocurrencies are also in the red, with losses ranging from 2% to 13%. After Powell’s comments on the economy, sentiment seems to have deteriorated.
Markets have somewhat reduced the chances of a rate cut at the Fed’s Federal Open Market Committee (FOMC) meeting to around 65%.
Moving forward to Bitcoin According to Glassnode, a break below $58,000-$60,000 would result in a significant number of short-term holders (STH) losing money and trading below the 200-day moving average. Price activity between $60,000 and $64,000 continues the market’s current sideways trend of hesitation.