Cryptos Tumble as Jerome Powell Doesn’t Anticipate Rate Cuts

Crypto, S&P 500, Gold Tumble as Jerome Powell Doesn’t Anticipate Rate Cuts

In a recent statement, Jerome Powell, the Federal Reserve Chairman, conveyed skepticism about the likelihood of interest rate cuts in the upcoming FOMC meeting in March.

This announcement sent shockwaves through the financial markets, leading to a noticeable downturn across various asset classes.

Crypto Reacts to Jerome Powell’s Skepticism About Rate Cuts

Following Powell’s remarks, significant assets witnessed a downturn. Bitcoin, the leading cryptocurrency, fell by 2.30%, moving from $43,744.10 to $42,701.90. Similarly, Ethereum also saw a decline of 2.25%, dropping from $2,346.85 to $2,294.00. These movements highlight the sensitivity of cryptocurrencies to global financial policies and investor sentiment.

The traditional markets were not spared either. The S&P 500, a barometer for US equity market health, dipped by 1.10%, sliding from $4,906.75 to $4,852.16. Gold, often considered a safe haven during turbulent times, also retreated by 1.11%, from $2,053.65 to $2,030.81, reflecting investor uncertainty and the immediate impact of Powell’s stance.

Bitcoin, Ethereum, S&P 500, Gold Price Performance. Source: TradingView

Powell’s comments underscored the Fed’s cautious approach to monetary policy, hinting at a meticulous strategy for combating inflation without stifling economic growth.

“I don’t think it’s likely that the committee will reach a level of confidence by the time of the March meeting to identify March as the time to [cut], but that’s to be seen,” Powell stated.

This cautious stance by the Fed signals a critical juncture for investors, as the traditional correlation between interest rates and asset valuation becomes a focal point of market dynamics. With rate cuts off the table for now, investors are recalibrating their portfolios in anticipation of a potentially prolonged period of high interest rates, impacting investment strategies across the board.

This is a developing story…

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.

Source link

Be the first to comment

Leave a Reply

Your email address will not be published.


*