Powell Says Fed Would Cut Rates Before Inflation Falls to 2% Target, but Crypto Markets Shrug

Traders who are feeling optimistic about the prospect of lower borrowing costs are likely still taking a cautious stance on digital assets and focusing on pockets of the equity market instead

Federal Reserve Chair Jerome Powell said on Wednesday that the central bank would be willing to cut interest rates before inflation falls in line with its 2% target, a statement that did little to move crypto markets.

Traders who are optimistic about the prospect of lower borrowing costs are likely still taking a cautious stance on digital assets and focusing on pockets of the equity market instead, according to FxPro analyst Alex Kuptsikevich.

“It seems that all the market bulls have moved on to U.S. and Japanese equities, avoiding cryptocurrencies…Fear remains the main driver of the market,” he wrote in a research note.

Ether (ETH), which is the second-largest cryptocurrency in terms of market cap, rose 0.7% to $3,116.

Among so-called altcoins, Solana (SOL) fell 0.9% to $142, while Cardano (ADA) rose 2.7% to 39 cents. Dogecoin (DOGE) dropped 0.5% to 11 cents.

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