- The Federal Reserve’s stance influences global markets.
- Crypto markets experience volatility with $374 million liquidated.
- Despite the turbulence, Bitcoin price remains stable and increasing.
Federal Reserve Chair Jerome Powell stated that a significant rate cut is inappropriate for next month, according to The Wall Street Journal’s August 14 report.
The statement impacts cryptocurrencies, particularly Bitcoin and Ethereum, prompting market sensitivity amidst global macroeconomic conditions without triggering panic among investors or immediate responses from developers.
Crypto Markets Navigate Volatility Amid Powell’s Rate Remarks
Jerome Powell’s recent assertions emphasize the Fed’s steady approach to rate policy. Despite expectations for easing, Powell deemed large rate reductions inappropriate, impacting investor perceptions. His statements echo through markets as participants adjust their forecasts. Crypto assets responded the most, mirroring historical reactions to rate discussions. Minor fluctuations in crypto prices reflect cautious optimism rooted in potential future Fed shifts.
Market analysts and traders reacted to these pronouncements. The absence of a major rate cut caused $374 million in liquidations, especially among over-leveraged crypto positions. Overall, the broader asset landscape maintained composure amid initial turbulence spurred by the Fed’s stance.
Bitcoin’s price reached $121,661.87 with a market cap of formatNumber(2421822523120, 2) and a 1.41% increase over 24 hours, according to CoinMarketCap. Trading dynamics revealed a 30.90% surge in volume. Its circulating supply stood at 19,906,175, indicating a robust demand equilibrium.
Market Implications of Fed’s Stance
Did you know? Historically, crypto markets brace for increased volatility around Fed meetings, impacting high-beta altcoins and decentralized finance platforms.
Fed’s cautious stance bears implications for the crypto market’s trajectory. Recent actions highlight investors’ sensitivity to rate announcements, with potential policy pivots shaping longer-term asset valuations.
As of August 14, 2025, there are no direct quotes or official statements from Jerome Powell regarding the assertion that ‘a significant rate cut next month seems inappropriate.’
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Source: https://coincu.com/markets/fed-chair-discredits-rate-cut-rumors/