- The Fed has announced a slower rate cut cycle due to recent economic growth.
- This has raised speculations on the possible impacts that could be expected in the crypto market.
The Asian side of the world woke up to the crypto market’s slight dip in prices. However, on a positive note, prices have steadied their position in the bull run after recent rallies. This clears the path for more progressive growth in the coming days.
Meanwhile, turning eyes to major propellants of the bull market, the USA gave a new update a few hours ago. The country’s leading economic regulator, Federal Reserve chair Jerome Powell, discussed the economy and inflation recently. During his speech, Powell stated that the US economy has shown growth along with a solid job market, and thus, interest rate cuts can be slowed down.
On Thursday, in Dallas, the Fed Chair stated that the USA’s inflation rate had remained below 2%. These positive improvements suggest that we could proceed more carefully with interest rate cuts given the strong economy, said Jerome Powell. The Fed recently in the beginning of November, made its third interest rate cut.
Furthermore, on reverting to the crypto market, the previous rate cuts resulted in upward price movements. Additionally, the November rate cut was one of the contributing factors to the Moonvember bull rally. Thus the recent announcement has raised speculations on how its impact would be in the crypto market.
How Will the Crypto Market Receive Fed’s Rate Cut Pause?
Assuming from historical data, Fed interest rate cuts have resulted in positive impacts on cryptocurrency prices. However, there have also been cases when it didn’t have any effects on the crypto market. Despite that, a continuous rate-cut cycle could be expected to propel prices further when combined with current bullish trends.
Subsequently, a slower Fed rate cut cycle would mean the absence or a delay in a positive contributing factor. Leading cryptocurrencies would require to prolong the bullish trend without one additional propellant. Relatedly, a recent announcement revealed that several US states have filed complaints against the SEC headed by Chair Gary Gensler.
On the other hand, the current crypto market, despite the aforementioned price dip, still remains within the limits of the bull run. Altcoins such as Ethereum and DOGE have continued to hold market attention with their price activity.
