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Sujit Kumar
Nov 15, 2024
by Sujit Kumar

Fed Chair Powell's Rate Remarks Shake Crypto Markets

Jerome Powell

Table of contents

  1. Crypto Price Action
  2. Liquidation and Market Sentiment
The cryptocurrency market experienced a significant downturn after Federal Reserve Chair Jerome Powell stated that the central bank is "not in a hurry" to cut interest rates. Speaking on Thursday, Powell noted, “The economy is not sending any signals that we need to be in a hurry to lower rates,” emphasizing the resilience of the U.S. economy.

Despite a quarter-point rate cut last week and expectations of another in December, Powell’s comments tempered market optimism. Recent economic data, including a 0.2% rise in the producer price index and a drop in unemployment claims to 217,000, underscored the economy’s strength, further supporting the Fed’s cautious stance.

Crypto Price Action

Following Powell’s remarks, Bitcoin's price fell 1.84% to $89,000, retreating from its $93,465 all-time high earlier this week. Ethereum, Solana, Dogecoin, and Shiba Inu saw losses of 3%-7% in the last 24 hours. Lesser-known tokens like Dogwifhat (WIF), Neiro, and Mew dropped by 12%-14%.

Despite the broader market slump, select tokens outperformed. XRP surged 15% to $0.8122, while Hedera (HBAR) climbed nearly 13%. Cronos, Stellar, Cardano, Near, and BRETT also posted gains between 3% and 15%.

Liquidation and Market Sentiment

CoinGlass data reveals that $504 million in crypto positions were liquidated in the last 24 hours, with $358 million coming from long positions. The market’s reaction reflects waning optimism over immediate rate cuts, highlighting the sensitive relationship between macroeconomic signals and crypto performance.

While Bitcoin remains up 17% on a weekly basis, Powell’s remarks reinforce the need for cautious optimism in a volatile market.

Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
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Fed Chair Powell's Rate Remarks Shake Crypto Markets
Sujit Kumar
Sujit received his Bachelors in Science from the LNMU Darbhanga. He is currently working as a Content Strategist. He has more than three years of professional experience in information systems, security policies, technologies, and Cryptocurrency. He has published 6 books in the area of information security and assurance. He has published more than 50 research articles in leading journals Regarding the Latest and Breaking Crypto News and updates. His research interests include access control, computer forensics, Digital Marketing, Web development, business hacks, player experience, and virtual storytelling.

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