The encryption market in the red color where investors weighs recent comments from major federal reserve officials, which reflects a cautious approach by the central bank regarding interest rates.
according to CNBCFederal Reserve Governor Michel Bowman said on Monday that although monetary policy is “now in a good place”, she wants to see more inflation before further interest rates.
The latest notes are in line with the previous comments from other federal reserve officials. Federal Reserve Chairman Jerome Powell has repeatedly stated that the central bank does not rush to reduce interest rates, but investors will be welcomed by any vision in the future path of monetary policy.
Feelings stabilized after the producers ’price index was released last Thursday and the consumer price index report on Wednesday, which pushed the interest rate expectations back until the second half of 2025.
According to CME data, markets only expect one or two interest points by the end of 2025. Markets are pricing in the possibility of approximately 98 % of the lack of price discounts at the next meeting in the Federal Reserve in March.
The encryption markets interact
The majority of cryptocurrencies decreased in the trading session early on Tuesday, as cautious expectations of the Federal Reserve of interest rate discounts have led to the enthusiasm of speculative assets. High rates tend to reduce the attractiveness of risky assets, while lower rates tend to be useful for encryption assets. In the past 24 hours, approximately $ 279 million has been filtered in the cryptocurrency market.
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Bitcoin has lost less than 1 %, but ETHEREUM (ETH), XRP, Cardano’s Ada and BNB BNB series all decreased by 4 %. Solana Sol decreased by 8 % to about $ 169, while Meme Coins Dogecoin (Doge) and Shiba Inu (SHIB) decreased.
Investors are looking towards FOMC meetings later this week, and they will also see the minutes of the Federal Reserve meetings, to be issued on Wednesday, to obtain hints about the period in which the central bank wants to maintain fixed prices.
