Fed Chair Powell's Remarks Trigger Crypto Market Dip, Bitcoin Falls 3.2%

Crypto markets saw a slight dip late Thursday during U.S. trading hours. This came right after Federal Reserve Chairman Jerome Powell made some remarks that caught attention.

Powell said, “The economy is not sending any signals that we need to be in a hurry to lower rates.” He added, “The strength we are currently seeing in the economy gives us the ability to approach our decisions carefully.”

After those comments, the price of Bitcoin (BTC) fell about 1.5%, dropping to $88,300. It then dipped further to $88,000, marking a 3.2% decline over the last 24 hours. Ether (ETH) also saw a similar drop. However, the broader CoinDesk 20 Index managed to rise by 0.5% during this time. Ripple’s (XRP) price surged 13%, possibly due to comments from SEC Chair Gary Gensler that hinted at his potential exit following Trump’s victory.

Just a day ago, the chance of a Fed rate cut at the upcoming mid-December meeting stood at 83%. After Powell’s speech, that likelihood fell to 62%, according to CME FedWatch.

Traditional markets also pulled back a bit. The Nasdaq dropped 0.75% to a session low shortly before the trading day ended.

Despite these recent changes, cryptocurrency markets remain strong. Bitcoin is still up 15% week-over-week. Other coins like Cardano (ADA), Ripple (XRP), NEAR, and Stellar (XLM) have seen gains between 20% and 40%.