Crypto markets hold steady after Powell reiterates data-dependent stance

The total cryptocurrency market showed limited reaction following remarks from Federal Reserve Chair Jerome Powell, as investors digested continued signals that U.S. monetary policy will remain data-dependent amid elevated inflation.

Speaking after the Federal Open Market Committee voted to hold interest rates at 3.50%–3.75%, Powell said the central bank views its current policy stance as appropriate, following 75 basis-point rate cuts over its previous three meetings.

Powell signals policy near neutral, no preset path forward

Powell said the U.S. economy entered 2026 on “firm footing,” with consumer spending and business investment remaining resilient. 

While job growth has slowed, the unemployment rate has stabilized, and inflation, though easing from 2022 highs, remains above the Fed’s 2% target.

He emphasized that future policy decisions would depend on incoming data, the evolving economic outlook, and the balance of risks, reiterating that monetary policy is “not on a preset course.”

The Fed offered no guidance on the timing of additional rate cuts.

Total crypto market cap shows muted response

Broader crypto market data suggests investors responded cautiously to the press conference. The total crypto market capitalization excluding stablecoins hovered near $2.7 trillion, showing little change in the hours following Powell’s remarks.

The aggregate market remains below its 20-day and 50-day moving averages, reflecting a broader consolidation phase that has persisted since late November. 

Despite intermittent rebounds, total market capitalization has struggled to regain levels above $2.9 trillion. This indicates that risk appetite remains constrained under current macro conditions.

Trading volume across the market also remained subdued, reinforcing the view that Powell’s comments did not materially alter near-term liquidity expectations.

Macro uncertainty continues to cap risk appetite

Powell acknowledged that inflation pressures in the goods sector, partly driven by tariffs, continue to weigh on the outlook, even as disinflation in services progresses. 

He also noted that the recent federal government shutdown likely weighed on growth last quarter, though those effects are expected to reverse.

For crypto markets, the absence of a dovish surprise kept conditions largely unchanged. 

With policy now closer to neutral but no clear signal on further easing, investors appear to be waiting for stronger confirmation that inflation is on a sustained path toward target before increasing risk exposure.

Final Thoughts

• Powell reiterated that the Fed will remain data-dependent after holding rates at 3.50%–3.75%, offering no guidance on the timing of further cuts.
• The total crypto market capitalisation, excluding stablecoins, remained near $2.7 trillion, suggesting consolidation rather than a directional move.