Fed Vice Chair Philip Jefferson has recently made crucial comments regarding rate cuts, with the implications for Bitcoin, Ethereum and the broader crypto space now being assessed.

According to CNBC, Jefferson stated Tuesday that the central bank should be cautious when adjusting interest rates in an uncertain policy climate. The Fed vice chair echoes previous sentiment from other officials, saying that it is in the Fed's best interests to proceed cautiously while it assesses changing conditions.

The remarks came less than a week after the FOMC chose to keep the policy rate unchanged at 4.25% to 4.5%. The Fed committee had reduced the federal funds rate by a total of one percentage point in the previous three meetings after rapidly raising it to battle an increase in inflation.

HOT Stories Chainlink Sees Highest Whale Activity in 14 Months, Is Major Move Coming? ‘100% Big Deal’ – Ripple CEO Defends Crypto Czar’s Big Press Conference On Crypto Legislation SEC Reducing Crypto Enforcement Dogecoin (DOGE) Lands on Crucial Support, US Dollar Index (DXY) Signaling Bitcoin Surge, Ethereum (ETH) Shows Worst Top 10 Performance

Related
Thu, 07/18/2024 - 12:18 Federal Reserve: Crypto Reacts to Fed's Crucial Market Comments
Tomiwabold Olajide

Over the past year, the Fed's preferred inflation gauge, the personal consumption expenditures price index, has dipped. In December, the rate rose 2.6% year on year, significantly below its peak but still above the Central Bank's 2% target. Jefferson predicted that inflation might continue to fall, but he tempered his expectations.

How crypto reacted

The crypto market saw mixed price action in the early Wednesday session, with a handful of crypto assets sustaining Tuesday's gains. However, a few had slight losses at press time.

Over the weekend, Bitcoin fell sharply as market players responded to macroeconomic concerns. Bitcoin and other digital assets experienced significant declines and then a relief rally on Monday, with BTC falling from $104,000 to $91,178 before recovering. ETH fell as low as $2,150 on Monday before recovering to its current price of $2,763. Solana fell to a low of $176 before recovering to its current price of $203.

Related
Mon, 01/27/2025 - 14:01 What's Next for Crypto? Fed Meeting, Inflation Data to Shape Markets
Tomiwabold Olajide

Bitcoin was trading at $99,600, down 1.02% in the last 24 hours and around 10% off its record high of $109,114 reached on Jan. 20, 2025. Ethereum, Cardano, Tron, Avalanche, Shiba Inu, PEPE and Algorand sustained gains between 1.75% and 7%.

According to Ali, Bitcoin has reclaimed a critical demand zone between $96,475 and $99,360 as support. As long as this level holds, the odds favor the bulls, especially if the $102,350-$103,900 supply wall breaks.

免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。