Cryptocurrency collectively declines! Big news suddenly breaks about the Federal Reserve cutting interest rates!

On the evening of March 7, cryptocurrencies still trading experienced a broad decline. Major news about the Federal Reserve cutting interest rates has emerged.

As of press time, Bitcoin has fallen nearly 3%, and Ethereum has dropped over 3%.

According to CoinGlass data, over 88,000 traders were liquidated in the past 24 hours worldwide.

On the news front, the ongoing escalation of Middle East conflicts has caused oil prices to soar. Traders reacted to the unexpectedly declining U.S. employment data, leading to a decline in U.S. stocks on March 6.

Additionally, there are new statements from Federal Reserve officials regarding future rate cuts.

According to media reports, Federal Reserve Board member and supervisory vice chair Michelle Bowman hinted that the below-expected February employment report suggests she is once again inclined to support further rate cuts.

After the non-farm payroll report was released, Bowman said, “I was fine with the January meeting holding steady, but now that we see the labor market situation, maybe that was just an exception.” The “exception” she referred to was the strong job growth in January.

She stated that the new data “confirms that the labor market remains soft and needs our policy rate to provide some support.” The Federal Reserve officials will hold their next policy meeting in Washington from March 17 to 18.

Federal Reserve official Harker also said that ongoing energy shocks could push inflation higher and put pressure on economic activity. If inflation does not cool down later this year, the Fed may need to consider raising interest rates. Inflation could fall to 2% by 2027, and the Fed may not need to wait until inflation reaches 2% to cut rates again.

(Source: Securities Times · e Company)