• Fed Chair Jerome Powell hinted at the possibility of additional rate cuts later in the year.
• The crypto market historically performs better during low interest rate environments.
• Despite the speech, Bitcoin and the crypto market continued their downtrend, with a general decline of 4.2% in the past 24 hours.

The general crypto market continued on a downtrend on Monday despite Fed Chair Jerome Powell hinting at the possibility of further interest rate cuts later in the year.

Crypto market sees decline amid possibility of further rate cuts

Federal Reserve (Fed) Chairman Jerome Powell stated on Monday that the 50 bps interest rate cuts shouldn't be interpreted as proof that future cuts will be as high.

"Looking forward, if the economy evolves broadly as expected, policy will move over time toward a more neutral stance. But we are not on any preset course," Powell told the National Association for Business Economics. 

Powell stated that the economy is in solid shape, indicating a desire to keep it that way. He further noted that the 50 bps rate cut decision reflects growing confidence towards a stronger labor market, which would ultimately result in a fall in inflation.

Additionally, Jerome Powell hinted at the possibility of more interest rate cuts, which will be decided based on economic data. "As we consider additional policy adjustments, we will carefully assess incoming data, the evolving outlook, and the balance of risks," said Powell.

Further Fed rate cuts may positively impact the crypto market, as history has shown a correlation between Bitcoin's price and lower interest rates.

This trend was particularly evident during the 2017 crypto market bull run and the initial coin offering (ICO) surge when rates were approximately between 0.75% and 1.25%. However, a market correction began in 2018 as the Federal Reserve started raising interest rates.

Following Powell's speech on Monday, the crypto market remained mum, with a general market decline of 4.2% at the time of publication.