The crypto market wavered on February 17 as traders reacted to fresh comments from a senior Federal Reserve official. Investors are also watching tensions in the Middle East and the upcoming release of the Fed’s meeting minutes.
Bitcoin was little changed at around $67,000, while Ethereum traded near $1,980. The total crypto market cap slipped by about 0.15% to $2.34 trillion in the last 24 hours.
Market sentiment remains weak. The Crypto Fear and Greed Index stayed in the extreme fear zone at 13, showing that many traders are still cautious. The Altcoin Season Index stood at 31, suggesting that Bitcoin continues to dominate the market.
The latest moves came after Austan Goolsbee, president of the Federal Reserve Bank of Chicago, said he supports several interest rate cuts this year if inflation keeps falling toward the Fed’s 2% target. He said more cuts could happen in 2026, but officials need clear proof that inflation is under control.
Recent data from the Bureau of Labor Statistics showed that consumer inflation slowed to 2.4% in January, down from 2.7%. Core inflation held steady at 2.5%. Inflation has been trending lower in recent months.
The Fed’s latest dot plot suggests only one rate cut this year. However, traders on Polymarket expect up to three cuts. Lower interest rates often help risky assets like crypto because they increase liquidity in the market.
There are also signs that hedge funds are turning bearish on the U.S. dollar. A survey by Bank of America showed that dollar positioning among fund managers has fallen to its lowest level in more than a decade. A weaker dollar can support crypto prices since most coins are priced in dollars.
Investors are now waiting for the Federal Reserve to release the minutes from its last policy meeting on Wednesday. The report could offer more clues about the central bank’s next move and where Bitcoin and other cryptocurrencies may head next.
