The cryptocurrency market remains resilient despite the Federal Reserve's decision not to cut interest rates, with Bitcoin exhibiting decoupling from tech stocks. Santiment, a cryptocurrency analytics firm, suggests this independent performance could indicate a positive trend for Bitcoin, as historical bull cycles have often occurred with minimal reliance on traditional stock markets. While Fed Chair Jerome Powell reaffirmed the 2% inflation target, he also stated the Fed doesn't need to wait for its achievement to begin cutting rates. Market analysts interpret Powell's comments as hawkish, decreasing the likelihood of rate cuts this year. However, Powell's assurance that banks are capable of serving cryptocurrency customers, coupled with the SEC's recent move to ease hurdles for banks to custody crypto assets, has likely contributed to Bitcoin's recent price surge.
As noted by cryptocurrency analytics firm Santiment, the market has not been phased by Jerome Powell and the Fed 's decision not to cut interest rates.
Economist Joseph Brusuelas noted that"overnight index swaps investors are interpreting Powell's comments and presser as hawkish." He added that the probability of rate cuts this year has declined. Polymarket bettors currently see the implementation of just two rate cuts in 2025 as the most probable scenario.
CRYPTOCURRENCY FED INTEREST RATES BITCOIN BANKING
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