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Federal Reserve Chair Jerome Powell has recently delivered remarks that might have implications for crypto market.
On Monday, Powell stated that the central bank will not wait until inflation reaches 2% before cutting interest rates.
Powell, speaking at the Economic Club of Washington, D.C., cited the premise that central bank policy operates with "long and variable lags" to explain why the Fed would not wait for its target to be met.
According to Powell, the Fed seeks "greater confidence" that inflation will return to 2%.
Tomiwabold OlajidePowell stated at the opening of his address that he did not aim to provide any signals about when the Fed would begin to lower interest rates. The central bank will hold its next policy meeting at the end of July.
Other Fed officials are scheduled to speak this week. On Tuesday, investors will be looking for the latest retail sales data as well as import and export prices.
How cryptocurrencies reacted
The crypto market is posting a mixed reaction amid profit-taking after a bullish start to the week. However, most cryptocurrencies remained in the green as investors weighed comments from Federal Reserve Chairman Jerome Powell on the outlook for the economy and interest rates.
A few cryptocurrencies and select meme coins are posting significant gains. Dogwifhat (WIF) and Floki (FLOKI) were up 20.35% and 18.4%, respectively, in the last 24 hours. Frog-themed cryptocurrency PEPE was up 23% in the last 24 hours.
Meanwhile, Bitcoin was up 0.46% in the last 24 hours to $63,166, reaching a near-one-month high of $65,025 earlier today.
Fluctuating expectations for cuts in U.S. interest rates had reduced demand for riskier assets in recent weeks, with Bitcoin previously falling to lows last seen in February.
The recent remark from the Fed Chairman, which raised the prospect of rate cuts, appears bullish for the crypto market.
Alex Dovbnya
Vladislav Sopov
Dan Burgin
U.Today Editorial Team