Analyst Predicts Short-Term Correction in Cryptocurrency Market

The digital asset market is poised for a short-term correction as Bitcoin’s price has yet to reflect the Federal Reserve’s decision to delay a rate cut. This was stated by Jag Kooner, head of derivatives at Bitfinex, in an interview with The Block.

“The cryptocurrency market may decline in the short term if market expectations for a rate cut remain high and the next Fed meeting results in a pause on this issue,” he explained.

On February 4, Federal Reserve Chair Jerome Powell, in an interview with 60 Minutes, ruled out an early rate cut in 2024, despite market expectations for such a move in March. He described it as “unlikely.”

“We have stated that we want to be confident in reducing inflation to 2%. It is unlikely that the committee will reach the necessary level of confidence by the March meeting, which is in seven weeks,” Powell said.

Earlier, at the meeting on January 31, the Fed maintained the key rate range at 5.25–5.5% per annum.