Fed Chair Powell Says No Rush to Cut Interest Rates, Bitcoin Slides  

• Fed Chair Powell says there’s no urgency to cut interest rates after recent inflation data.  
• Bitcoin prices dropped after Powell’s statement, breaching the $88,000 support level.  
• Altcoins, including Ethereum and XRP, are also seeing declines amid market reactions.  

The Federal Reserve Chair Jerome Powell recently delivered a clear statement regarding the future of interest rate adjustments. Speaking at a conference in Dallas, Powell emphasized that the central bank is not in a hurry to cut interest rates further, citing the current strength of the economy. 

He noted that the Federal Reserve would maintain its careful monitoring of economic indicators to determine if any adjustments are necessary. This stance comes shortly after the Fed’s second rate cut of the year, which had stirred speculation about potential further reductions.

In light of Powell’s remarks, the latest US Producer Price Index (PPI) inflation data also drew attention. The report revealed a year-on-year increase of 2.4%, which slightly exceeded expectations. 

The PPI is one of the Federal Reserve’s key measures of economic health. Powell highlighted that the inflation rate hovering near the 2% target suggests positive momentum. However, he acknowledged that some fluctuations could occur, pointing to the need for continued vigilance in the Fed’s approach.

Following the Fed Chair’s speech, the crypto market saw immediate reactions. Bitcoin, which had recently surged to an all-time high above $93,000, experienced a sudden correction. 

Investors appeared to interpret Powell’s statement as a signal to recalibrate their strategies, leading to a sell-off. At the time of reporting, Bitcoin had dropped below its $88,000 support level, trading at around $87,328, representing a 3.12% decline over 24 hours.

This downward trend wasn’t limited to Bitcoin alone. Altcoins like Ethereum (ETH), Solana (SOL), and Binance Coin (BNB) also faced declines. XRP, which had hit $0.8, its highest level this year, was similarly affected as it lost gains swiftly.

Market analysts suggest that the reaction in the crypto market could be a knee-jerk response to the Fed’s decision to hold off on further rate cuts. The absence of additional rate reductions may make traditional assets more attractive, potentially reducing the appeal of cryptocurrencies as a hedge against inflation. 

However, despite the current market dip, some experts believe that longer-term growth markers within the crypto industry remain strong.