Crypto Prices Dip as Fed Chair Powell Stresses Caution on Rate Cuts

The cryptocurrency market experienced a mild downturn late Thursday following remarks by Federal Reserve Chair Jerome Powell at a conference in Dallas. Powell emphasized a measured approach to monetary policy, stating, "The economy is not sending any signals that we need to be in a hurry to lower rates. The current strength allows us to make careful decisions."

Bitcoin (BTC) reacted swiftly, dropping 1.5% to $88,300 shortly after Powell’s comments and extending its decline to $87,000 by press time—a 4.2% decrease over the past 24 hours. Ethereum (ETH) mirrored this trend, falling by a similar margin. 

Market sentiment surrounding a potential December rate cut also shifted. According to CME FedWatch, the probability of a cut dropped from 83% to 62% after Powell’s speech. This newfound uncertainty spilled over into traditional markets, with the Nasdaq shedding 0.75% by the end of the trading session.

While the Trump administration's victory had initially buoyed markets, Powell’s hawkish tone reminded investors of the Federal Reserve's cautious stance, influencing both crypto and traditional assets.