According to Bitfinex’s head of derivatives department, Jag Kooner, the digital asset market is currently experiencing a short-term correction. This is due to the fact that the price of Bitcoin has not yet reflected the intentions of the Fed to postpone their rate cut.
Kooner explained that if the Fed decides to pause on the rate cut issue at their upcoming meeting, market expectations for a rate cut will remain high and could potentially cause a decline in the cryptocurrency market.
Recently, Fed Chairman Jerome Powell stated that the Fed is unlikely to make an early rate cut in 2024, despite market expectations for one in March.
He cited the need to reach a 2% inflation reduction as a reason. At their meeting on January 31, the Fed decided to keep the key rate range at 5.25-5.5% per annum.