Fed Chair Powell's cautious approach on rate cuts causes crypto market dip and uncertainty

From Investing.com

November 15, 2024 10:30 AM:

The crypto markets dipped as Federal Reserve Chair Jerome Powell indicated the central bank is not rushing to cut interest rates. Despite a recent rate decrease, Powell emphasized the economy’s strength, suggesting no immediate need for further cuts. Inflation and employment figures support this stance, with producer prices rising and unemployment claims dropping.

Powell’s remarks impacted market sentiment, leading to a decline in expectations for a December rate cut. Bitcoin’s price dropped after hitting record highs, affecting other cryptocurrencies and triggering liquidations of long positions. While Bitcoin is showing signs of recovery, it remains down 1.84% in the last 24 hours. Other cryptocurrencies experienced losses between 3% and 14%, with a few exceptions in the green.

Despite fluctuations, some cryptocurrencies saw gains amidst the overall market downturn. Hedera and Cronos performed well, with Hedera showing a nearly 13% increase. CoinGlass data reveals significant liquidations across all cryptocurrencies, totaling $504 million in the last 24 hours, with $358 million from long positions. Market volatility continues as investors navigate Powell’s cautious approach to rate cuts.

Read more at Investing.com: Fed Chair Jerome Powell Delivers Crucial Comments for Market, How Crypto Reacted By U.Today