Crypto Market Reeling As Fed Hints At More Rate Cuts
The crypto market is experiencing a bit of a dip as Federal Reserve officials continue to hint at potential interest rate cuts.
## Fed Officials Eyeing More Rate Cuts
Raphael Bostic, the President of the Federal Reserve of Atlanta, has indicated that he may support another 50 basis point rate cut in November, if US job data shows improvement. This conditional expectation is not entirely new, as other Fed officials have made similar statements.
The Fed’s focus on US job data is significant. Bostic has said that the Federal Open Market Committee (FOMC) will closely examine the data at its November meeting. He noted that weak job data could lead to more aggressive rate cuts.
The Fed’s goal is to bring inflation down to 2% annually. With inflation still elevated, the Fed needs to remain in a “restrictive posture” until there’s evidence that inflation is falling.
Market Reactions
The news of potential rate cuts has sent ripples through the crypto market. Bitcoin (BTC) has dropped by 4.08% in the past 24 hours, trading at $63,112.16. Ethereum (ETH), Binance Coin (BNB), XRP, and Solana (SOL) also saw declines.
Rate cuts typically have an impact on the price of Bitcoin and the broader financial market. With more capital potentially freed up, the US Dollar could become devalued, leading investors to seek out alternative ways to save their funds.
**Stay tuned for more updates on the crypto market as the Fed’s decisions continue to shape the landscape.**
