#Crypto_market
The recent decline in the cryptocurrency market is primarily attributed to the Federal Reserve's monetary policy decisions.
* Hawkish Stance: Despite cutting interest rates by 0.25%, Fed Chair Powell's comments signaled a more cautious approach to future rate cuts in 2025. This hawkish stance dampened investor sentiment.
* Slower Rate Cut Cycle: The expectation of a slower rate cut cycle in 2025 raised concerns among investors about the potential impact on the economy and risk assets like cryptocurrencies.
* Tightening Liquidity: The Fed's tightening monetary policy creates less liquidity in the market, making it harder for investors to borrow money and potentially impacting the demand for riskier assets.
* Rising Bond Market Volatility: Increased volatility in the bond market can also create uncertainty and risk aversion among investors, leading to a sell-off in cryptocurrencies.