The cryptocurrency market’s exuberant rally following Donald Trump’s election victory took a breather on Thursday after Federal Reserve Chair Jerome Powell poured some cold water on expectations of imminent interest rate cuts. In remarks delivered at a conference in Dallas, Powell suggested that the central bank may not be in as much of a hurry to lower rates as previously thought.
“The economy is not sending us any signals that we need to rush to cut rates,” Powell said, adding that the current strength in the economy gives the Fed leeway to approach its decisions carefully. The comments sent a slight shiver through the crypto market, with the price of Bitcoin (BTC) dipping around 1.5% to $88,300 in the minutes following Powell’s speech.
Bitcoin Leads Market Pullback as Rate Cut Odds Dip
At press time, Bitcoin was trading just above $88,000, down 3.2% over the past 24 hours. Ethereum (ETH) saw a similar decline, while the broader CoinDesk 20 index managed a 0.5% gain, buoyed by a 13% surge in Ripple’s XRP token. The jump in XRP may have been fueled by comments from SEC Chair Gary Gensler that could be interpreted as signaling his plans for a quiet exit after Trump’s victory.
Just hours earlier, a December rate cut from the U.S. central bank had been seen as a near certainty. But in the wake of Powell’s remarks, the odds of a cut at the Fed’s mid-December meeting dropped to 62%, according to the CME FedWatch tool. One day ago, those odds stood at 83%.
Traditional Markets Also Feel the Chill
Traditional markets also took a bit of a pause on the hawkish tone, with the tech-heavy Nasdaq slipping 0.75% in a low-volume session just minutes before the day’s trading close. Despite the late-day pullback, crypto markets remain firmly in the green over the past week, with Bitcoin still boasting a 15% gain and names like Cardano (ADA), Ripple (XRP), NEAR Protocol (NEAR), and Stellar (XLM) sitting 20% to 40% higher.
“The market got a little ahead of itself in pricing in an imminent pivot from the Fed,” said a senior crypto analyst who requested anonymity due to their firm’s media policy. “Powell’s comments served as a reality check, but the overall trend still seems to favor risk assets like crypto in the post-election environment.”
Altcoins Outperform as Investors Seek Higher Returns
The analyst noted that the outsized gains seen in many altcoins reflect a growing appetite for risk among crypto investors, who may be rotating out of Bitcoin and Ethereum in search of higher returns. This dynamic could continue to play out in the coming weeks, especially if Bitcoin’s rally loses steam near the psychologically important $90,000 level.
Amid the broad market retreat, Ripple’s XRP token emerged as a notable outlier, surging 13% on the day. The rally may have been sparked by SEC Chair Gary Gensler’s post-election remarks, which some interpreted as laying the groundwork for his potential departure from the agency.
Ripple has been locked in a lengthy legal battle with the SEC over allegations that the company’s sales of XRP constituted unregistered securities offerings. A change in leadership at the SEC could potentially lead to a more favorable resolution for Ripple, although the outcome remains highly uncertain.
Looking Ahead: Key Levels to Watch
As the crypto market digests the latest developments, traders will be keeping a close eye on key technical levels for signs of a potential trend reversal. For Bitcoin, a sustained break below the $86,000 support could open the door to a deeper correction, while a bounce from current levels may set the stage for a retest of the $90,000 resistance zone.
Meanwhile, Ethereum will look to defend its recent gains above $3,000, with bulls targeting a potential run toward the all-time high near $3,500. For altcoins like XRP, ADA, and NEAR, the ability to hold above their respective breakout levels will be crucial in determining whether the current rally has legs or is merely a flash in the pan.
As always in the fast-moving world of crypto, investors will need to stay nimble and adapt to changing market conditions. With the U.S. election now in the rearview mirror and the Fed’s policy path coming into clearer focus, the stage is set for an exciting finish to a tumultuous year in the digital asset space.
Amid the broad market retreat, Ripple’s XRP token emerged as a notable outlier, surging 13% on the day. The rally may have been sparked by SEC Chair Gary Gensler’s post-election remarks, which some interpreted as laying the groundwork for his potential departure from the agency.
Ripple has been locked in a lengthy legal battle with the SEC over allegations that the company’s sales of XRP constituted unregistered securities offerings. A change in leadership at the SEC could potentially lead to a more favorable resolution for Ripple, although the outcome remains highly uncertain.
Looking Ahead: Key Levels to Watch
As the crypto market digests the latest developments, traders will be keeping a close eye on key technical levels for signs of a potential trend reversal. For Bitcoin, a sustained break below the $86,000 support could open the door to a deeper correction, while a bounce from current levels may set the stage for a retest of the $90,000 resistance zone.
Meanwhile, Ethereum will look to defend its recent gains above $3,000, with bulls targeting a potential run toward the all-time high near $3,500. For altcoins like XRP, ADA, and NEAR, the ability to hold above their respective breakout levels will be crucial in determining whether the current rally has legs or is merely a flash in the pan.
As always in the fast-moving world of crypto, investors will need to stay nimble and adapt to changing market conditions. With the U.S. election now in the rearview mirror and the Fed’s policy path coming into clearer focus, the stage is set for an exciting finish to a tumultuous year in the digital asset space.
For now, all eyes will be on the Nov. 22 release of the minutes from the Federal Reserve’s latest policy meeting, which could provide further clues on the central bank’s thinking around the pace and timing of future rate moves. Any hints of a more dovish stance could reignite the crypto market rally, while a doubling down on hawkish rhetoric may extend the current pullback.
Ripple’s XRP Bucks the Trend
Amid the broad market retreat, Ripple’s XRP token emerged as a notable outlier, surging 13% on the day. The rally may have been sparked by SEC Chair Gary Gensler’s post-election remarks, which some interpreted as laying the groundwork for his potential departure from the agency.
Ripple has been locked in a lengthy legal battle with the SEC over allegations that the company’s sales of XRP constituted unregistered securities offerings. A change in leadership at the SEC could potentially lead to a more favorable resolution for Ripple, although the outcome remains highly uncertain.
Looking Ahead: Key Levels to Watch
As the crypto market digests the latest developments, traders will be keeping a close eye on key technical levels for signs of a potential trend reversal. For Bitcoin, a sustained break below the $86,000 support could open the door to a deeper correction, while a bounce from current levels may set the stage for a retest of the $90,000 resistance zone.
Meanwhile, Ethereum will look to defend its recent gains above $3,000, with bulls targeting a potential run toward the all-time high near $3,500. For altcoins like XRP, ADA, and NEAR, the ability to hold above their respective breakout levels will be crucial in determining whether the current rally has legs or is merely a flash in the pan.
As always in the fast-moving world of crypto, investors will need to stay nimble and adapt to changing market conditions. With the U.S. election now in the rearview mirror and the Fed’s policy path coming into clearer focus, the stage is set for an exciting finish to a tumultuous year in the digital asset space.
For now, all eyes will be on the Nov. 22 release of the minutes from the Federal Reserve’s latest policy meeting, which could provide further clues on the central bank’s thinking around the pace and timing of future rate moves. Any hints of a more dovish stance could reignite the crypto market rally, while a doubling down on hawkish rhetoric may extend the current pullback.
Ripple’s XRP Bucks the Trend
Amid the broad market retreat, Ripple’s XRP token emerged as a notable outlier, surging 13% on the day. The rally may have been sparked by SEC Chair Gary Gensler’s post-election remarks, which some interpreted as laying the groundwork for his potential departure from the agency.
Ripple has been locked in a lengthy legal battle with the SEC over allegations that the company’s sales of XRP constituted unregistered securities offerings. A change in leadership at the SEC could potentially lead to a more favorable resolution for Ripple, although the outcome remains highly uncertain.
Looking Ahead: Key Levels to Watch
As the crypto market digests the latest developments, traders will be keeping a close eye on key technical levels for signs of a potential trend reversal. For Bitcoin, a sustained break below the $86,000 support could open the door to a deeper correction, while a bounce from current levels may set the stage for a retest of the $90,000 resistance zone.
Meanwhile, Ethereum will look to defend its recent gains above $3,000, with bulls targeting a potential run toward the all-time high near $3,500. For altcoins like XRP, ADA, and NEAR, the ability to hold above their respective breakout levels will be crucial in determining whether the current rally has legs or is merely a flash in the pan.
As always in the fast-moving world of crypto, investors will need to stay nimble and adapt to changing market conditions. With the U.S. election now in the rearview mirror and the Fed’s policy path coming into clearer focus, the stage is set for an exciting finish to a tumultuous year in the digital asset space.
