Market Jitters: Cryptos Slide as Powell Reinforces Delaying Rate Cuts Stance

Cryptocurrencies experienced a decline on Tuesday as Federal Reserve Chairman Jerome Powell reinforced the likelihood of delaying rate cuts, while stocks saw a modest recovery after stronger-than-expected retail sales data.

Bitcoin and Ether Slip Ahead of Bitcoin Halving Event: Market Sentiment and Price Analysis

Bitcoin and ether both slipped approximately 3% on Tuesday, reversing Monday's slight gains. Bitcoin hovered around $62,400, potentially heading into its upcoming halving event later in the week on a negative note. Despite anticipation among some traders for the halving to catalyze a bull run, researchers caution that the event may already be priced into the market.

Stock Market Sees Modest Gains Despite Fed Rate Concerns: Retail Sales Boost Confidence

The stock market showed marginal gains on Tuesday, with the S&P 500 and Nasdaq Composites edging up around 0.1% amid stronger retail sales figures for March. However, traders remain cautious about the Federal Reserve's stance on interest rates, particularly in light of last week's higher-than-expected inflation data.

Fed Chairman Powell Acknowledges Economic Strength but Cautions on Inflation: Market Implications

During a panel discussion, Fed Chairman Jerome Powell acknowledged the recent solid growth in the consumer market and labor market strength. However, he noted a lack of significant progress in achieving the Fed's 2% inflation goal so far in 2024. Powell's remarks signaled that interest rates may need to remain higher for a longer duration, aligning with market sentiment.

Market Expectations Shift: Diminished Probability of Rate Cuts Reflects Positive Economic Data and Powell's Remarks

Market expectations for rate cuts in May and June have diminished, with futures data indicating a low probability of rate cuts. This shift in expectations follows the release of positive economic data and Powell's statements.

Tom Essaye, founder of Sevens Report Research, highlighted the shift in market expectations from initially anticipating multiple rate cuts to now considering only two or fewer cuts in 2024. This adjustment reflects the market's response to evolving economic indicators and the Federal Reserve's guidance.