The Federal Reserve's Powell is hawkish! BTC falls below 87,000, but "this coin" goes To The Moon against the trend

Fed Chairman Powell: No need to rush to cut interest rates

According to CNBC, Federal Reserve Chairman Jerome Powell said in a recent speech that due to the strong performance of the U.S. economy, it can confidently decide on the extent and pace of interest rate cuts, emphasizing:

There is currently no signal in the economic aspect that requires an urgent rate cut.

In the speech, Powell expressed optimism about the US economy, stating that economic growth is far superior to other major economies.

He pointed out that despite disappointing job growth in October due to the impact of hurricanes and strikes, the overall labor market remains robust.

Regarding inflation, Powell stated that he has seen "significant progress" and expects the inflation rate to continue to approach the Federal Reserve's target of 2%.

October PPI shows a slight rebound in inflation.

On the same day as Powell's speech, the US also released the Producer Price Index (PPI) data. The monthly growth rate of PPI in October was 0.2%, a rise of 0.1% compared to September, in line with Dow Jones' expectations. The annual growth rate was 2.4%; the core PPI monthly growth rate was 0.3%, also in line with market expectations.

However, the core PPI annual growth rate of 3.1% is still above the Fed's target, but the overall trend indicates that inflation is gradually easing.

In terms of employment, the latest report from the US Department of Labor shows that as of the week ending November 9, the number of initial claims for unemployment benefits was 217,000, a decrease of 4,000 from the previous week, slightly lower than the expected 220,000, indicating a continued steady job market.

After Powell's speech, BTC fell sharply.

Although the US inflation seems to be under control and the job market continues to be steady, the most followed aspect in the risk asset market is still the magnitude and speed of interest rate cuts.

Therefore, Powell's hawkish remarks put pressure on the encryption coin market. BTC fell sharply within minutes after the speech, hitting a low of $86,668. Ethercoin ($ETH) also experienced a similar decline.

CME FedWatch data shows that the market's expectation of a rate cut in December has dropped significantly to 62% after Powell's speech, but it was still over 80% the day before.

Bullard's hawkish remarks also affected the traditional investment market, with the three major US indices all falling, including the Dow Jones falling 0.47%, the S&P 500 falling 0.6%, and the Nasdaq falling 0.64%.

Ripple ($XRP) rises against the trend

Despite the overall market pressure, Ripple coin ($XRP) has become a Mainstream Token that rises against the trend, soaring to a high of $0.8473, and quoting $0.8148 at the time of writing, with an intraday gain of over 17%.

Why is $XRP rising against the trend? CoinDesk believes it may be related to the remarks of Gary Gensler, Chairman of the US Securities and Exchange Commission (SEC). In his latest speech, he reviewed his experience since taking office, which was interpreted by the outside world as a possible quiet resignation after Trump took office.

Although experiencing a pullback, the encryption currency market still performs quite strongly recently.

The weekly increase in Bitcoin is still about 15%, while the gains of tokens such as Cardano ($ADA), Ripple ($XRP), Near Protocol ($NEAR), and Stellar ($XLM) have reached 20% to 40%. DOGE ($DOGE) and PEPE coin ($PEPE) have experienced big pump under the news of Musk and listing exchange.

Extended reading: DOGE coin surged more than 50%! Investors are ecstatic, 'DOGE to 1' slogan reappears, 3 major exchanges announced listing! PEPE coin big pump 90%, but 'this indicator' suggests caution

Disclaimer: The market is risky, and investment should be cautious. This article does not constitute investment advice. Users should consider whether any opinions, viewpoints, or conclusions in this article are applicable to their specific situation. Invest at your own responsibility.

The Federal Reserve's Powell hawkish! BTC falls below 87,000, but 'this coin' goes To The Moon against the trend. This article was first published in 'encryption city'.