Washington, September 7 (FinanceFlashNews) — In a pivotal move, Federal Reserve Governor Christopher Waller has backed a potential interest rate cut ahead of the central bank’s September 17-18 policy meeting, stirring volatility across traditional and digital markets. Waller’s statement signals a shift in the Fed’s approach to monetary policy, leaving investors eager to see how the decision will impact cryptocurrency prices.
According to CNBC, Waller reiterated Fed Chair Jerome Powell’s remarks from August, suggesting that the time for policy adjustments has come. However, Waller did not specify the pace or extent of the anticipated cuts. The possibility of easing monetary policy is gaining traction, as a weaker-than-expected nonfarm payrolls report on Friday showed only 142,000 job gains, falling short of the predicted 161,000.
| Metric | Actual | Expected |
|---|---|---|
| Nonfarm Payrolls | 142,000 | 161,000 |
| Bitcoin Price (BTC/USD) | $54,360 | – |
| Ethereum Price (ETH/USD) | -4% | – |
| Dogecoin Price (DOGE/USD) | -4% | – |
Crypto Market Reaction Despite the Fed’s comments, the cryptocurrency market has remained relatively muted. Bitcoin (BTC) slipped by 3%, trading at $54,360, while Ethereum (ETH), Dogecoin (DOGE), and other digital assets also posted losses of over 4%. However, assets such as Algorand, BONK, and Optimism traded in the green with gains of up to 4%. The crypto market’s close correlation with global stocks has left it in a holding pattern as investors await further clarity from the Fed.
Historically, a looser monetary policy has been seen as a positive catalyst for speculative assets like cryptocurrencies. Lower interest rates often push investors to seek higher returns in riskier markets, potentially driving up crypto prices.
Keywords: Fed interest rate cut, cryptocurrency market reaction, Bitcoin drop, Ethereum price, Fed monetary policy.
