- Fed Atlanta chief Raphael Bostic has defended no rate cuts for 2026.
- The crypto market cap has surged by 3.47% to $2.65 trillion.
- Other possible factors are the India-US trade deal closure and a statement by Mike Belshe.
Raphael Bostic, Chief Executive Officer of Fed Atlanta, shared his insight on further rate cuts in 2026. The crypto market has reacted positively. It could also be in light of a recent India-US deal closure, or a remark by Mike Belshe, BitGo CEO. However, a statement by Bostic seems to be gaining more traction, given it directly links to the appetite of investors.
Fed Atlanta Chief on Rate Cuts
The CEO of the Federal Reserve Bank of Atlanta, Raphael Bostic, believes that there should not be any more rate cuts this year, which is 2026. According to a report by Reuters, Bostic has based his statement on the strength of the economy and stabilization of the labor market. He has said that a rate cut might make it difficult to get inflation under the target.
His statement comes after the selection of Kevin Warsh as the next Fed Chair. He is known to align with the principles of US President Donald Trump when it comes to lowering the lending rates. The January meeting of the US Fed concluded with a 10-2 voting number in favor of no rate cut. Thereby maintaining the rate in the range of 3.50% and 3.75%.
Reaction of the Crypto Market
The global crypto market has surged in terms of cap, which is up by 3.47% to $2.65 trillion. BTC, the flagship cryptocurrency, has gained 3.75% over the last 24 hours, to exchange hands at $78,099.14, when the article is being written.
A positive reaction of the crypto market is also reflected from upticks in the values of ETH, BNB, and XRP, by 5.17%, 5.21%, and 3.83%, during the same timeline, respectively.
Bitcoin tokens, for one, are trying to reclaim a support margin of around $80k. Overall, the FGI is 17 points, but projections remain bullish amid the possibility of increasing volatility and fluctuations.
Other Possible Factors
The crypto market also reacted positively because India and the US recently closed a long-negotiated trade deal. While details about the same are awaited, it is known for certain that the US has agreed to lower tariffs on India to 18% – boosting confidence among businesses for international trades.
The U.S. Chamber of Commerce has called this move a progress towards the goal of achieving a market-opening deal with India.
A statement by BitGo CEO Mike Belshe may also have triggered an upswing in the crypto market. He recently posted on X, supporting stablecoin yields. He called it proof that blockchain infrastructure could deliver better capital efficiency.
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