The fall in the crypto asset market contrasts with positive sentiment caused by the recent decision of the US Federal Reserve to increase the key rate (from 4.25-4.5% to 4.5-4.75%). Explaining the decision, Fed Chairman Jerome Powell said that now for the first time his department will be able to discuss disinflationary processes in the US economy.. However, Powell confirmed that interest rates will not fall this year.. That is, the gap between market expectations and the position of the Fed remains significant.
Regardless of this, the digital asset market turned out to be encouraged, which was reflected in the growth in the value of the main cryptocurrencies by capitalization.. However, positive sentiment began to wane as we waited for the US employment report.
Additional concerns for crypto investors were caused by a report from the consulting company ADP, which reported that the number of hiring cases in January fell significantly below expectations: only about 100,000 new jobs were created.. Experts have suggested that the US economy could be heading into a recession as jobs fall and unemployment rises.. They believe that if the nonfarm payroll data is worse than expected, it could affect the Fed's plans.
As a result, the cryptocurrency market is now experiencing a decline: over the past 24 hours, Bitcoin has fallen by more than 1.5%, to the value of $23,500, and Ethereum has decreased by 1.8%, to the level of $1600.
CNBC financial news columnist and Mad MoneyGram host Jim Cramer warned crypto investors against excessive activity and a possible drawdown in the bitcoin rate amid the Fed's decision.