Crypto market steady as top Fed official makes case for more rate cuts
The crypto market held steady on Tuesday as investors bought the dip and as risky assets like stocks continued their recent rally.
- The crypto market held steady on Tuesday as the recent crash faded.
- Federal Reserve’s Stephen Miran supports more interest rate cuts this year.
- Technical analysis suggests that cryptocurrencies have further downside in the near term.
Bitcoin (BTC) price rose to $78,330, up by 5% from its lowest level this month. Other top altcoins like Ethereum (ETH), Solana (SOL), and Hyperliquid (HYPE) were in the green. The market capitalization of all tokens rose by 0.62% in the last 24 hours.
The crypto market rose as Stephen Miran, a top Federal Reserve official, insisted that the bank should deliver more interest rate cuts this year, as inflation has remained lower than expected. He supports cutting interest rates by more than 1 full point this year, saying:
“I don’t see a lot of strong supply-demand imbalances of the type that monetary policy should respond to. So I think we’re keeping rates too high, mostly because of quirks of how we measure inflation, rather than actual price pressures themselves.”
His statement came a few days after President Donald Trump nominated Kevin Warsh to become the next Federal Reserve Chairman, if confirmed by the Senate.
Warsh is widely seen as an interest-rate hawk who has opposed quantitative easing. He has also criticized the bank for holding interest rates low for long.
The crypto market also steadied as talks between the United States and Iran began, reducing the risk of war in the region.
Data compiled by Polymarket shows that the possibility of the US striking Iran has dropped from over 80% last week to 60% today. This trend explains why crude oil prices have dropped in the past few days, with Brent moving from $70 last week to $66.50 today.
Technical analysis suggests the crypto market is still at risk of a dive
A closer look at longer-term charts shows that the crypto crash has more room to go. The daily timeframe chart shows that the market capitalization of all coins remains below the 50-day and 100-day Exponential Moving Averages.
This chart also shows that it remains below the crucial support level at $2.7 trillion, its lowest level in November last year.
It is all slowly forming a bearish pennant pattern, which consists of a vertical line and a symmetrical triangle. Therefore, the most likely scenario is that it resumes the downtrend in the coming days or weeks.
