The post Fed’s Hawkish Stance Spurs Crypto Market Decline appeared on BitcoinEthereumNews.com.

The cryptocurrency market faced a notable setback following the Federal Open Market Committee’s (FOMC) interest rate cuts. Despite a reduction in rates, Federal Reserve Chair Jerome Powell’s hawkish projections for 2025, which suggest half the previously expected rate cuts, rattled both crypto and equities markets. The cautious outlook dampened investor sentiment, leading to a widespread sell-off across digital assets. 📉 After the FOMC interest rate cuts, both crypto and equities traders were left feeling a bit concerned. Not because of the current cuts, but due to Jerome Powell’s projection for 2025 to have half the amount of rate cuts as expected. Altcoins, in particular, have gotten… pic.twitter.com/LVR2oIvCRu — Santiment (@santimentfeed) December 19, 2024 According to Santiment,The impact of Powell’s announcement was felt most acutely in the altcoin sector, where several prominent tokens experienced double-digit losses. Over the past 24 hours, Avalanche (AVAX), Chainlink (LINK), and Litecoin (LTC) each fell by 16%, while Pepe (PEPE) suffered a 17% decline. These substantial pullbacks outpaced the overall crypto market’s decline of 4.4% over the past week, highlighting the volatility and vulnerability of altcoins to macroeconomic developments. Traders and analysts view these declines as symptomatic of broader market uncertainty. The perceived overreaction to Powell’s forward guidance has raised questions about whether these depressed prices present a buying opportunity for investors willing to take on the risk. Interestingly, while the total crypto market capitalization shrank to approximately $3.94 trillion, representing a 4.4% drop in the past week, trading volume surged by 23%, reaching $781.5 billion. This increase in trading activity suggests heightened market engagement, with investors reacting swiftly to the Fed’s announcement and subsequent price movements. The sharp rise in trading volume reflects both panic selling and opportunistic buying. Market participants appear divided between those offloading assets to mitigate losses and others eyeing potential bargains…

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Filed under: News - @ December 20, 2024 3:09 am