Earlier this week, we shifted to a bullish stance as we noticed promising developments in the cryptocurrency market. Concurrently, we launched our cryptocurrency portfolio.

However, our short-term optimism has been tempered slightly. Yesterday afternoon, Jerome Powell, chair of the Federal Reserve, addressed the market. He challenged the market’s overly optimistic expectations of impending interest rate cuts, stating that a rate cut in March is unlikely, despite the market before yesterday betting a more than 50% chance on it. The Fed officials emphasized in their statement that rate cuts would not be considered until there is greater assurance that inflation is steadily returning to the 2% target. Consequently, the market is now leaning towards a potential rate cut in May instead of March.

Despite these developments and the sudden shift in the market sentiment, we maintain our positive outlook on cryptocurrencies, although it appears that much of Crypto Twitter has turned to the dark side overnight. We believe the market should remain calm; the delay in rate cuts is a minor adjustment rather than a significant shift in the financial landscape. We will explain our perspective by examining both the broader economic environment and specific factors within the crypto market, starting with the latter.