The crypto market was down in the early Wednesday session, apparently in response to recent remarks by Federal Reserve Chair Jerome Powell. Major crypto assets like Bitcoin, XRP, and Shiba Inu are posting losses amid market caution.
Jerome Powell's Role in Current Market Decline
On Tuesday, Federal Reserve Chair Jerome Powell reiterated the central bank's commitment to lowering inflation and hinted that policymakers are not rushing to cut interest rates. Powell's comments were consistent with his prior views and those of his colleagues, who face a mix of fiscal and monetary factors creating uncertainty.
Major Cryptocurrencies Show Decline
Markets have interpreted the Fed's recent messaging as indicating that rates will remain on hold, likely through the summer. Bitcoin's price fell nearly 2% in the past 24 hours. Most cryptocurrencies, such as XRP and Shiba Inu, are recording losses of over 3%, with other major cryptocurrencies also seeing declines.
Outlook and Impact on Crypto Economy
Powell stated that the current policy stance allows for flexibility, with the benchmark Fed funds rate remaining from 4.25% to 4.5%. The market continues to react to the Fed's statements, leading to general uncertainty and volatility in the crypto market.
Jerome Powell's statements continue to impact the crypto market, sparking caution among investors. Future developments in financial markets will depend on economic policy and reactions in the global markets.
