Cryptocurrency Market May Fall Due to Delayed Fed Rate Cut

Jag Kuner, Head of Derivatives at Bitfinex, predicts a short-term correction in the cryptocurrency market. According to him, the Bitcoin price has not yet reacted to the Fed's statement about a possible delay in the rate cut.

"The cryptocurrency market may fall in the short term if market expectations for a key rate cut remain high and the next Fed meeting does not result in the expected cut," Kuner explained.

On February 4, Fed Chair Jerome Powell said in an interview with 60 Minutes that an early rate cut in 2024 is unlikely, despite market expectations for it in March.

"We want to be confident that inflation has come down to 2%. It is unlikely that the committee will reach the required level of confidence by the March meeting, which is in seven weeks," Powell said.

Experts believe that the delayed Fed rate cut could negatively impact the cryptocurrency market, which has been showing growth recently.