tl;dr
Federal Reserve Chairman Jerome Powell stated that the central bank is in a wait-and-see mode regarding interest rate adjustments, emphasizing the need for clarity amidst evolving economic conditions. This stance contradicts market expectations for rate reductions, with Powell indicating a cautious ...
Federal Reserve Chairman Jerome Powell has expressed a cautious approach to interest rate adjustments, contradicting market expectations. Powell emphasized the need for clarity amidst evolving economic conditions, stating that the central bank is in a wait-and-see mode regarding interest rate adjustments. This announcement coincided with a modest increase in nonfarm payrolls, impacting the cryptocurrency market. Altcoins such as XRP, Cardano's ADA, and Solana's SOL experienced significant losses, while Bitcoin demonstrated more resilience with a 3.38% decrease.
Powell reiterated recent statements, urging patience on monetary policy in the face of heightened uncertainty. His comments seem to contradict rising market expectations for interest rate reductions, as traders have priced in the equivalent of three-quarter percentage point reductions by the end of the year, beginning in June. The Fed chair's remarks come on the same day as the Labor Department's announcement of a 151,000 increase in nonfarm payrolls in February, somewhat lower than market estimates.
The cryptocurrency market reacted to the Fed's comments with a downturn, with altcoins like XRP, Cardano's ADA, and Solana's SOL falling more than market leader Bitcoin (BTC). XRP fell 8.11% in the last 24 hours to $2.33, Cardano's ADA lost over 8%, and Solana's SOL dropped 4% to $138 in the early Saturday trading session. Other altcoins suffered losses ranging from 9% to 12%, while nearly all of the top 100, except for a few assets, were in the red daily.
Crypto traders experienced a significant sell-off, with the market seeing $493 million in liquidations in the last 24 hours, according to CoinGlass data. Despite the market downturn, Bitcoin demonstrated considerable resilience in comparison to the altcoin market sell-off, trading at $85,950, down 3.38% in the previous 24 hours.