Fed's Jerome Powell Delivers Essential Message for Crypto Investors: Details

Federal Reserve Chair Powell's Remarks Impact Crypto Market

Federal Reserve Chair Jerome Powell's recent remarks may have implications for the cryptocurrency market.

On Monday, Powell stated that the central bank will not wait for inflation to reach 2% before considering interest rate cuts. Speaking at the Economic Club of Washington, D.C., Powell emphasized the time lag in monetary policy and the Fed's aim to achieve "greater confidence" that inflation will decline to the 2% target.

Despite Powell's statement that he did not intend to indicate the timing of rate cuts, the Fed's next policy meeting is scheduled for late July. Other Fed officials are expected to speak this week, while investors will monitor retail sales data and import and export prices on Tuesday.

Market Reaction

The cryptocurrency market has exhibited a mixed reaction, with profit-taking following a positive start to the week. Nevertheless, most cryptocurrencies remain in positive territory as investors digest Powell's comments on the economic outlook and interest rates.

Certain cryptocurrencies, including meme coins, have posted significant gains. Dogwifhat (WIF) and Floki (FLOKI) rose by 20.35% and 18.4%, respectively, over the past 24 hours. Frog-themed cryptocurrency PEPE also saw a 23% increase in the same period.

Bitcoin has experienced a modest recovery, gaining 0.46% over the past 24 hours to reach $63,166. Earlier today, it reached a near-one-month high of $65,025.

Fluctuating expectations for U.S. interest rate cuts had previously dampened demand for riskier assets, leading Bitcoin to fall to February lows. Powell's recent remarks, however, seem to have a bullish effect on the crypto market, suggesting the potential for rate cuts.