U.Today – Crypto Market Reaction to Fed's Interest Rate Remarks

The crypto markets fell after Federal Reserve Chair Jerome Powell stated that the central bank is not "in a hurry" to cut interest rates.

Powell, in a recent address, emphasized that the U.S. Federal Reserve does not need to rush lowering rates. Last week, the Fed reduced its benchmark borrowing cost by a quarter percentage point, and traders anticipate similar cuts in December.

> "The economy is not sending any signals that we need to be in a hurry to lower rates," Powell said. "The strength we are currently seeing in the economy gives us the ability to approach our decisions carefully."

The Fed's views followed the announcement of inflation and employment figures. The producer price index grew by 0.2% in October, aligning with Dow Jones predictions. Initial unemployment claims for the week ending Nov. 9 totaled 217,000, a decrease of 4,000 from the previous week, indicating economic resilience.

Crypto Market Price Action

Powell's remarks affected market sentiment, reducing expectations for a December rate cut. After hitting an all-time high of $93,465 on Wednesday, Bitcoin's price fell on Thursday, pulling other cryptocurrencies down and resulting in many long bets being liquidated.

Despite signs of recovery, Bitcoin remains down 1.84% in the last 24 hours at $89,000 but is up 17% on a weekly basis. Ethereum, Solana, Dogecoin, and Shiba Inu fell between 3% and 7% in the past 24 hours, with Dogwifhat (WIF), Neiro, and Mew experiencing larger losses of up to 14%.

A few cryptocurrencies returned to positive territory, including Hedera (HBAR), which rose nearly 13%, while Cronos, Stellar, Cardano, Near, and BRETT saw gains of 3% to 15%.

XRP outperformed the top 10, rising 15% in the last 24 hours to $0.8122. CoinGlass data indicates that $504 million in positions were liquidated across all cryptocurrencies in the last 24 hours, with $358 million in long positions.

This article was originally published on U.Today.