San Francisco Federal Reserve President Mary C. Daly recently indicated the possibility of a rate cut, citing weak job market indicators and subsiding inflation pressures.
Weak Job Data as Rate Cut Signal
Mary Daly noted that weakening job market indicators alongside decreasing tariff-induced inflation may signal a looming interest rate cut. Although uncertainty remains regarding the timing, Daly emphasizes that the Federal Open Market Committee (FOMC) is adaptable. She explained: > "We have the labor market slowing and we got that one labor market report that looks like it has some additional weakness in there. But again, unpacking the information, it's too early to tell whether that's a slowing to a sustainable pace... or if it's getting to a point where there's real weakness there, it's really too early to know." — Mary C. Daly, President, Federal Reserve Bank of San Francisco.
Bitcoin Steadies Amid Fed's Dovish Pivot
According to CoinMarketCap, Bitcoin (BTC) is currently trading at **$114,811.17**, with a market cap of **$2.28 trillion**. It holds a market share of **60.70%**, and trading volume has increased by **12.11%** in the last 24 hours, despite a **0.34%** price increase.
Impact of Potential Rate Cuts on Crypto Market
The Coincu research team notes that potential Fed rate adjustments could drive capital inflows into cryptocurrencies due to favorable conditions. Historically, dovish pivots bolster crypto markets, but precise timing and magnitude remain crucial from the FOMC.
Thus, the weak job data and decreasing inflation pressures highlighted by Mary Daly may lead to potential rate cuts, which in turn could impact both financial and cryptocurrency markets.