The crypto market is reacting to fresh comments from Federal Reserve Vice Chair Philip Jefferson, who urged caution when considering interest rate cuts in the current economic environment. His remarks came shortly after the FOMC decided to keep interest rates steady at 4.25%-4.5%, following three consecutive rate reductions aimed at controlling inflation.
Jefferson acknowledged that inflation is cooling, with the PCE index rising 2.6% year-over-year in December, but it still remains above the Fed’s 2% target. While he expects inflation to ease further, he warned against rushing into aggressive rate cuts too soon.
Crypto Market Reacts with Volatility
🔹 Bitcoin (BTC) saw sharp swings over the past few days, dropping from $104,000 to $91,178 over the weekend, before bouncing back to $99,600. It’s now sitting 10% below its all-time high of $109,114 recorded on Jan. 20, 2025.
🔹 Ethereum (ETH) tumbled to $2,150 before recovering to $2,763, while Solana (SOL) fell to $176 but is now back above $203.
🔹 Altcoins showed resilience, with Cardano (ADA), Tron (TRX), Avalanche (AVAX), Shiba Inu (SHIB), PEPE, and Algorand (ALGO) gaining between 1.75% and 7%.
Key Bitcoin Levels to Watch
According to analysts, Bitcoin has reclaimed a crucial demand zone between $96,475 and $99,360, acting as strong support.
If BTC can break through the $102,350-$103,900 resistance zone, bulls could regain control, potentially setting the stage for another move toward $109K+.
What’s Next?
With the Fed hesitant to cut rates aggressively, crypto markets remain highly sensitive to macroeconomic shifts. Traders are now closely watching:
✔️ Upcoming economic data that could influence the Fed’s next move
✔️ Bitcoin’s ability to hold above key support levels
✔️ Potential breakout opportunities if resistance is breached
Will Bitcoin climb back above $100K, or will uncertainty keep markets under pressure? The next few weeks will be crucial for traders and investors.
