Cryptos 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.

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.

Read more: How to Protect Yourself From Inflation Using Cryptocurrency

This cautious stance by the Fed signals a critical juncture for investors. Indeed, the traditional correlation between interest rates and asset valuation now become a focal point. 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…