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Breaking Cryptos, S&P 500, Gold Tumble as Jerome Powell Doesn’t Anticipate Rate Cuts

1 min
Updated by Bary Rahma
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In Brief

  • Jerome Powell signals no rate cuts in the upcoming March FOMC meeting.
  • Cryptocurrencies, S&P 500, and gold all fell following Powell's announcement.
  • Investors appear to adjust portfolios anticipating continued high-interest rates.
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In a recent statement, Jerome Powell, the Federal Reserve Chairman, conveyed skepticism about the likelihood of interest rate cuts in the upcoming FOMC meeting in March.

This announcement sent shockwaves through the financial markets, leading to a noticeable downturn across various asset classes.

Crypto Reacts to Jerome Powell’s Skepticism About Rate Cuts

Following Powell’s remarks, significant assets witnessed a downturn. Bitcoin, the leading cryptocurrency, fell by 2.30%, moving from $43,744.10 to $42,701.90. Similarly, Ethereum also saw a decline of 2.25%, dropping from $2,346.85 to $2,294.00. These movements highlight the sensitivity of cryptocurrencies to global financial policies and investor sentiment.

The traditional markets were not spared either. The S&P 500, a barometer for US equity market health, dipped by 1.10%, sliding from $4,906.75 to $4,852.16. Gold, often considered a safe haven during turbulent times, also retreated by 1.11%, from $2,053.65 to $2,030.81, reflecting investor uncertainty and the immediate impact of Powell’s stance.

Bitcoin, Ethereum, S&P 500, Gold Price Performance
Bitcoin, Ethereum, S&P 500, Gold Price Performance. Source: TradingView

Powell’s comments underscored the Fed’s cautious approach to monetary policy, hinting at a meticulous strategy for combating inflation without stifling economic growth.

“I don’t think it’s likely that the committee will reach a level of confidence by the time of the March meeting to identify March as the time to [cut], but that’s to be seen,” Powell stated.

Read more: How to Protect Yourself From Inflation Using Cryptocurrency

This cautious stance by the Fed signals a critical juncture for investors. Indeed, the traditional correlation between interest rates and asset valuation now become a focal point. With rate cuts off the table for now, investors are recalibrating their portfolios in anticipation of a potentially prolonged period of high interest rates, impacting investment strategies across the board.

This is a developing story…

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Bary Rahma
Bary Rahman, a talented journalist, graduated from New York University with a degree in Journalism. Skilled in SEO, she has worked with CNN, showcasing her investigative skills and storytelling abilities. In addition to her journalistic accomplishments, Bary has contributed her expertise as a content writer for Binance, crafting insightful articles on the dynamic crypto industry. Her unique fusion of journalism and SEO makes her a versatile and highly respected figure in the industry.