After Federal Reserve Chairman Jerome Powell made hawkish remarks at a conference in Dallas, the cryptocurrency market experienced volatility. Powell stated that the economy has not signaled a need for rapid interest rate cuts, which caused the prices of Bitcoin (BTC) and Ethereum (ETH) to drop temporarily. Nevertheless, the overall cryptocurrency market still maintained a high weekly gain.
Key Points
-
Powell's remarks led to a roughly 1.5% drop in Bitcoin's price in a short period.
-
The current price of Bitcoin is $88,000, down 3.2% in the past 24 hours.
-
The price of Ethereum also saw a similar decline.
-
Due to Powell's comments, market expectations for a rate cut by the Fed at the December meeting have decreased.
-
Despite short-term volatility, the overall cryptocurrency market remains strong with a significant weekly gain.
Powell's Hawkish Remarks
At the conference in Dallas, Powell emphasized the strong performance of the economy and stated that there is no need to rush into interest rate cuts. He pointed out that the current strong economic performance allows the Fed to make decisions cautiously. This statement drew widespread attention in the market, especially in the cryptocurrency sector.
Response from the Crypto Market
Following Powell's remarks, Bitcoin's price quickly fell, with the specifics as follows:
-
Bitcoin (BTC):
-
Price: $88,000
-
24-hour change: -3.2%
-
-
Ethereum (ETH):
-
Price drop similar to Bitcoin
-
Although the prices of Bitcoin and Ethereum have declined, some other cryptocurrencies performed strongly. For example, Ripple (XRP) rose by 13% after Powell's speech.
Response from Traditional Markets
Powell's hawkish remarks not only affected the crypto market but also had an impact on traditional markets. The Nasdaq index fell by 0.75% before the trading day ended.
Conclusion
Powell's speech has led to new expectations in the market regarding future interest rate policies. Despite the short-term volatility in the crypto market, the overall trend remains positive. The drop in prices for Bitcoin and Ethereum did not change their strong performance over the past week.