US Inflation and Fed Announcements Cause Volatility in Crypto Markets
Cryptocurrency markets have been volatile in recent days due to US inflation data and statements from the Federal Reserve (Fed) regarding its monetary policy. Here are the developments and market reactions:
US Inflation Data and Market Response The
Markets saw a positive movement as US inflation data came in below expectations, leading to an influx of approximately $80 billion into crypto markets. However, this positive sentiment reversed after Federal Reserve Chairman Jerome Powell made hawkish comments.
Fed’s Monetary Policy and Powell’s Statements The Fed
kept interest rates unchanged as expected, but Powell’s comments caused fluctuations in the markets. Powell emphasized that the current interest rate policy would be shaped by economic data, refraining from committing to rate cuts. This led to a downward trend in the cryptocurrency markets.
Status of Bitcoin and Other Crypto Assets Bitcoin
Initially moved towards the $70,000 level before retracing following Powell’s remarks. Particularly during periods of increased volatility, rapid movements were observed in the meme coin market, with high trading volumes noted for major meme coins like DOGE, SHIB, and PEPE. The short-term outlook for these assets remains critical at key support levels.
Crypto markets will closely monitor economic data flow and Fed monetary policy statements in the upcoming period. Investors should remain cautious, considering volatility and sudden changes in the market, and continue to make investment decisions prudently.
