Federal Reserve Chairman Jerome Powell’s recent comments had a noticeable impact on the crypto markets, causing a slight downturn in prices. In his speech at a Dallas conference, Powell emphasized that the current strength of the economy does not warrant an urgent need to lower interest rates. This more hawkish stance from the Federal Reserve led to a drop in the price of bitcoin (BTC) by about 3.2% over the past 24 hours, with ether (ETH) experiencing a similar decline.
Despite the dip in prices, the broader CoinDesk 20 Index managed to stay up by 0.5% during the same time period. Ripple’s XRP saw a significant 13% increase, possibly influenced by remarks from Securities and Exchange Commission Chair Gary Gensler hinting at a potential exit following the recent political developments.
The likelihood of a Federal Reserve rate cut at the upcoming meeting in December has decreased to 62% from 83% just a day ago, reflecting the impact of Powell’s speech on market expectations. Traditional markets also saw a pullback, with the Nasdaq experiencing a 0.75% decline towards the end of the trading day.
Despite these fluctuations, the crypto markets have been on an upward trend, with bitcoin still showing a 15% increase week-over-week. Other cryptocurrencies like Cardano (ADA), XRP, NEAR, and XLM have also seen gains ranging from 20% to 40% during this period.
It is important to note that CoinDesk, the source of this information, upholds strict editorial policies to ensure integrity, editorial independence, and freedom from bias in its publications. As part of the Bullish group, CoinDesk is dedicated to providing accurate and unbiased coverage of the cryptocurrency industry. Additionally, CoinDesk employees, including journalists, may receive equity-based compensation from the Bullish group, which was founded by technology investor Block.one.
Overall, while Powell’s comments may have caused a temporary dip in the crypto markets, the long-term outlook remains positive as the industry continues to experience growth and adoption. Investors should stay informed and monitor market developments to make well-informed decisions in this dynamic environment.
