Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnSquareMore
Bitcoin correction continues while equities interpret new Fed-speak

Bitcoin correction continues while equities interpret new Fed-speak

BlockworksBlockworks2023/12/15 18:53
By:Blockworks

New York Federal Reserve President John Williams on Friday pushed back on the notion that sent markets surging earlier this week

Cryptocurrencies dipped and equities traded sideways Friday after conflicting statements from the Federal Reserve confused traders about what comes next.

New York Federal Reserve President John Williams on Friday presented a different narrative from the one investors ran with on Wednesday. Williams pushed back on the notion that rate cuts are imminent, an expectation the market has been riding since Fed Chairman Jerome Powell’s Wednesday press conference. 

“We aren’t really talking about rate cuts right now,” he said during a CNBC interview Friday morning. “It’s just premature to be even thinking about that.”

Read more: Bitcoin has rallied. But where is the price going next?

The comments appear to contradict the Fed’s earlier statement that peak rates have likely been achieved, leaving markets to anticipate a round of rate cuts in 2024. 

The SP 500 traded sideways midway through Friday’s session while the Nasdaq Composite managed to clock moderate gains of 0.4%. 

The Dow Jones Industrial Average, which surged to a record high after the Fed’s Federal Open Markets Committee meeting, was also flat. 

 

While equities digested the different statements from the central bank, the dollar moved into a mild recovery after a sharp decline Wednesday. Although if we do see rate cuts in the first quarter of 2024, analysts say the dollar is due for another correction. 

“If markets are interpreting the Fed’s statements this week correctly and US rates do start to come down within the next few months, funds are likely to flow out of dollars into other currencies,” Noelle Acheson, author of the “Crypto is Macro Now” newsletter, said. “We’re already starting to see this — in the 24 hours following Wednesday’s FOMC statement, the DXY index dropped around 2%.” 

Bitcoin correction continues while equities interpret new Fed-speak image 0

Bitcoin ( BTC ) and ether ( ETH ) fell around 3% each Friday afternoon, extending the correction that started this week. According to analyst sentiment, this was an expected development.

Both cryptos are down about 5% since Monday, but still on track to end the year well into the green, with bitcoin and ether currently up 151% and 87%, respectively, year-to-date. 

“Sentiment in the crypto market had begun to turn overly bullish, which was met by a flash crash…earlier this week,” analysts from Cycles Edge wrote in a note Friday. “Crypto fear and greed index is showing elevated levels of greed. While this is not a timing tool in and of itself, it does suggest that the current run requires some cooling off soon.” 

Looking ahead, traders will have an eye on next week’s core Personal Consumer Expenditures index release. 

 As the Fed opted to lower its 2024 core PCE to 2.4%, which is still above the central bank’s 2% target, but a major decline from the 3.46% year-over-year increase reported last month. 

Don’t miss the next big story – join our  free daily newsletter .

Tags
  • BTC
  • ETH
  • Federal Reserve
0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

2025 TGE Survival Ranking: Who Will Rise to the Top and Who Will Fall? Complete Grading of 30+ New Tokens, AVICI Dominates S+

The article analyzes the TGE performance of multiple blockchain projects, evaluating project performance using three dimensions: current price versus all-time high, time span, and liquidity-to-market cap ratio. Projects are then categorized into five grades: S, A, B, C, and D. Summary generated by Mars AI This summary was generated by the Mars AI model, and the accuracy and completeness of its content are still being iteratively updated.

MarsBit2025/11/28 16:26
2025 TGE Survival Ranking: Who Will Rise to the Top and Who Will Fall? Complete Grading of 30+ New Tokens, AVICI Dominates S+

Mars Finance | "Machi" increases long positions, profits exceed 10 million dollars, whale shorts 1,000 BTC

Russian households have invested 3.7 billion rubles in cryptocurrency derivatives, mainly dominated by a few large players. INTERPOL has listed cryptocurrency fraud as a global threat. Malicious Chrome extensions are stealing Solana funds. The UK has proposed new tax regulations for DeFi. Bitcoin surpasses $91,000. Summary generated by Mars AI. The accuracy and completeness of this summary are still being iteratively updated by the Mars AI model.

MarsBit2025/11/28 16:26
Mars Finance | "Machi" increases long positions, profits exceed 10 million dollars, whale shorts 1,000 BTC

How much is ETH really worth? Hashed provides 10 different valuation methods in one go

After taking a weighted average, the fair price of ETH exceeds $4,700.

ForesightNews 速递2025/11/28 15:05
How much is ETH really worth? Hashed provides 10 different valuation methods in one go

Dragonfly partner: Crypto has fallen into financial cynicism, and those valuing public blockchains with PE ratios have already lost

People tend to overestimate what can happen in two years, but underestimate what can happen in ten years.

深潮2025/11/28 14:53
Dragonfly partner: Crypto has fallen into financial cynicism, and those valuing public blockchains with PE ratios have already lost