Today, the crypto market was volatile as traders watched a number of potential catalysts including Federal Reserve announcements and events in the Middle East.
The following is a summary of the information that you will find on this website:
- Austan Goolsbee’s statement that he supports more interest rate reductions caused the crypto market to tremble.
- He thinks that further cuts may be needed if the inflation rate continues to fall.
- The Fed had just published its minutes for the last meeting of its monetary policies when the statement was released.
Austan GOLSWEE’s statement is dovish, and the crypto market has been on edge since.
BitcoinBTCEthereum () was unchanged at $67,700.ETH() traded at $1980. Market capitalization for all coins fell by 0.15% over the last 24 hour to exceed $2.34 billion.
The Altcoin Season Index traded at 31.
Austin Goolsbee of the Chicago Fed noted there is room to cut interest rates several times this year, if the inflation rate continues to drop toward 2%. He said:
“I do think that if this proves to be transitory, and we can show that we’re on path back to 2% inflation, I still think there’s several more rate cuts that can happen in 2026, but we’ve got to see it.”
This statement was made a few weeks after the Bureau of Labor Statistics released encouraging figures showing that consumer inflation fell to 2.4% from 2.7% in January, and the core CPI did not change at all. The trend of inflation has been downwards from the previous 3% and may continue to be seen in the months ahead.
A recent dot plot indicated that Fed would only reduce interest rates by one percentage point this year. Polymarket traders predict the bank to cut rates 3 times.
As we witnessed during the Covid Pandemic when central banks cut rates, Bitcoin and many altcoins reached record levels.
Bets against the Dollar by Hedge Funds
Goolsbee’s comment came at a time when a report indicated that hedge funds had become increasingly negative on the US Dollar. Bank of America’s survey showed the dollar had fallen to its lowest position among fund managers in more than a decade. A weaker dollar should be good for the crypto-market because many coins are listed in U.S. currency.
The next catalyst will be the Federal Reserve’s release of the minutes of its most recent monetary policy meetings on Wednesday. The minutes of the meeting will give more details about what happened at the previous one and provide hints as to what is expected in future meetings.
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Source: crypto.news
