Ethereum

Solana

Jerome Powell

Chair

Bitcoin

The cryptocurrency market, including Bitcoin, continued its downward trend on Monday, even as Federal Reserve Chair Jerome Powell hinted at potential interest rate cuts later this year. Despite these signals, the market faced a general decline of 4.2% at the time of publication.Powell also <a href="https://www.youtube.com/watch?v=WuBXT-iZeLI" rel="noopener noreferrer nofollow">cautioned</a> that these rate cuts should not be seen as guarantees for future reductions. He stated, “Looking forward, if the economy evolves broadly as expected, policy will move over time toward a more neutral stance. But we are not on any preset course.” He emphasized that any further cuts would depend on ongoing economic data.Historically, lower interest rates have been correlated with rising Bitcoin prices, particularly evident during the 2017 bull run when rates were between 0.75% and 1.25%. However, despite Powell’s optimistic tone, major cryptocurrencies struggled. Bitcoin saw a decline of 3.5%, Ethereum dropped by 2.3%, and Solana fell by 2.6%.&nbsp;Additionally, the AI token category, including NEAR, ICP, ASI, RENDER, and GRT, also experienced significant declines.The meme coin market was similarly affected, with popular tokens like DOGE and SHIB <a href="https://www.cryptotimes.io/2024/09/30/bitcoin-ethereum-dogecoin-prices-dip-bedore-powell-speech/" rel="noopener noreferrer nofollow">falling nearly 10% in value</a>.&nbsp;Despite the market’s current struggles, some analysts remain hopeful about a potential turnaround. Vandell, the co-founder of Black Swan Capitalist, commented, “Very POSITIVE for risk-on assets like crypto. Rate Cuts = Increase Credit Creation = Increased Global Liquidity = Massive Crypto Bullrun.”His optimism suggests that Powell’s hints at further rate cuts could eventually attract more investors to the digital asset sector.As it stands, the cryptocurrency market remains under pressure, navigating a complex landscape amid ongoing macroeconomic uncertainties. The outlook remains cautious, with investors waiting to see how the Fed’s policies will impact market dynamics in the coming months.<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">Also Read: <a href="https://www.cryptotimes.io/2024/09/30/analysis-why-us-election-outcome-wont-impact-bitcoins-q4-rally/" rel="noopener noreferrer nofollow">Analysis: Why US Election Outcome Won’t Impact Bitcoin’s Q4 Rally</a></blockquote>

Crypto Market Stays Mum Despite Powell’s Rate Cut Signals

The Crypto Times

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