The crypto market wavered today, February 17, as traders watched several potential catalysts, including Federal Reserve statements and the happenings in the Middle East. Imagine a group of nervous squirrels, all scurrying to stash their acorns, but instead of acorns, they’re clutching crypto coins. A most peculiar sight, really.
“I do think that if this proves to be transitory, and we can show that we’re on path back to 2% inflation, I still think there’s several more rate cuts that can happen in 2026, but we’ve got to see it.”
The statement came a few days after the Bureau of Labor Statistics published encouraging consumer inflation dropped to 2.4% in January from the previous 2.7%, while the core CPI remained unchanged at 2.5%. Inflation has been trending downward from 3%, and the downtrend may continue in the coming months. A slow, sneaky retreat, like a mouse tiptoeing out of a room.
The recent dot plot signaled that the Fed will deliver one interest rate cut this year. On the other hand, Polymarket traders anticipate that the bank will cut rates three times. The Fed, ever the master of suspense, keeps its cards close to its chest, leaving traders to guess like children trying to read a magician’s mind.
The crypto market would benefit from more interest rate cuts, as we saw during the Covid pandemic, when Bitcoin and most altcoins jumped to record highs as central banks slashed rates. A tale as old as time: money falls, prices rise, and everyone’s suddenly a genius.
Hedge Funds Are Betting Against the Dollar
Goolsbee’s statement came as a report showed the hedge funds were increasingly bearish on the US dollar. The survey by Bank of America showed that the currency’s positioning among fund managers fell to the lowest level in over a decade. In theory, a weaker dollar benefits the crypto market because most coins are quoted in U.S. dollars. A bit like giving a hungry cat a bowl of tuna-everyone’s happy, except the tuna.
Looking ahead, the next major catalyst for Bitcoin and other altcoins will come on Wednesday, when the Federal Reserve releases minutes from its last monetary policy meeting. These minutes will provide more information about the last meeting and hints on what to expect in the next meetings. A mystery wrapped in a riddle, served with a side of anxiety.
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2026-02-17 19:58