Here's Why Shiba Inu (SHIB), XRP and Cardano (ADA) Just Recorded Major Price Jumps

Cover image via U.Today

Shiba Inu (SHIB), Cardano (ADA), XRP, and various other altcoins experienced a surge in value during a speech by Federal Reserve Chair Jerome Powell, before partially retracing their gains.

Powell allayed market concerns about "stagflation," a scenario combining slow economic growth with high inflation, stating that he did not perceive "the stag or the flation."

Prior to the speech, JPMorgan CEO Jamie Dimon had raised concerns about stagflation, suggesting that the US economy could be reverting to conditions similar to the 1970s.

Following Powell's remarks, American businessman and investor Jeffrey Gundlach expressed his anticipation of a single rate cut in the current year, ruling out the possibility of one in June. The Fed Chair himself acknowledged the difficulty in predicting rate changes, but indicated that a rate cut was unlikely to be the next policy move.

According to Powell, rate cuts could potentially occur sooner than expected if the labor market unexpectedly weakens. However, the decision will ultimately depend on incoming inflation data. Powell emphasized that the Fed is currently content with inflation remaining at 3%. The Fed's objective is to reduce inflation to 2% before initiating rate cuts.

Interest rate futures suggest a single rate cut in 2024, projected to occur in September.

The cryptocurrency market has been adversely affected by the Fed's policy shift, with Bitcoin recording its worst monthly performance since August 2023. The Fed had previously anticipated implementing at least three rate cuts in the current year.