Price of XRPSolana is aThe nd Dogecoin The crypto market is trying to recover after a rough stretch during President Trump’s tenure.
Investors will be focused on Fed chair Jerome Powell’s remarks after the decision, as well as a summary of economic projections (SEP), which is due to be released by the U.S. Central Bank.
Bitwise Senior Investment strategist Juan Leon said that “Altcoin Season may be dictated this year by Powell.” Decrypt. “If officials add more cuts to the ‘dot plot,’ that would likely boost crypto, given expectations of lower rates and higher implied support from the Fed to the economy.”
Fed SEP includes projections for unemployment and economic growth. But the interest rate expectations of officials are the most significant factor in risk assets. Crypto markets reached new highs after the Fed announced a number of rate reductions last year.
The crypto market, however, has seen a $1 trillion loss in value since the Fed’s December meeting. CoinGecko. Policymakers Signs then that there would be fewer rate cuts this year than investors anticipated, projecting two quarter-percentage-point rate cuts instead of four.
The prices of XRP Solana and Dogecoin all fell by over 4% each on Tuesday. $2.26To sum up, the respective amounts are $124 and $0.16. Bitcoin dropped 2.4%, to $82,000, and Ethereum fell 1.7%, to $1900.
Leon stated that Powell is likely to strike a cautiously optimistic tone, while the officials keep their dot plots unchanged. He said the U.S. Central Bank is “waiting and seeing” about tariffs and inflation. Powell, on his part, will probably point out a murky economic outlook.
Donald Trump on-again, off-again Since his election, the price of crypto has been impacted by Trump’s tariff policy. They’ve also sparked Inflation concernsSome economists are concerned that the costs incurred by consumers and business could also affect economic growth.
Elon Musk’s Department of Government Efficiency or DOGE“, has been added Growing ConcernsMarket participants are analyzing the impact of federal budget cuts on employment and economic growth.
Leon noted that altcoins, such as XRP and Solana and Dogecoin, have been particularly sensitive to the expectation of rate reductions, since Securities and Exchange Commission is adopting a more crypto friendly tone.
He added that “they will be less at the mercy of specific regulatory action and more at macro’s whim”.
Andrew Hayward is the editor
