February 12 Crypto Market: Is the Market Preparing for a Rally?

February 12 Crypto Market – Why Crypto Isn’t Reacting to Powell’s Rate Cut Comments

February 12 Crypto Market – US Federal Reserve Chair Jerome Powell stated on February 12, 2025, that the central bank sees no need to hurry when it comes to rate cuts, signaling that interest rates could remain elevated for the foreseeable future. Despite this, the crypto market showed notable resilience, with altcoins barely reacting to Powell’s remarks, leaving some analysts to suggest that the market bottom might already be in.

Matthew Hyland, a well-known crypto analyst, pointed out that the crypto market barely reacted to the potentially bearish news. In a tweet, Hyland noted that even though the market had received what he termed the “worst possible news” of 2025, altcoins largely held their ground, and some even experienced gains. He suggested that this stability could indicate that the market had already priced in the possibility of the Fed maintaining high rates throughout 2025.

Market Pricing in Rate Hold: A Potential Market Bottom?

Hyland further explained that the crypto market is typically forward-looking, meaning it may have already anticipated the Fed’s stance on interest rates. He referenced a recent capitulation a week prior as a possible sign that the bottom has already occurred.

Over the past 24 hours, Ethereum (ETH) was down by 3.78%, XRP had dropped by 1.24%, and Solana (SOL) decreased by 2.20%, according to data from CoinMarketCap. Despite these small declines, Hyland noted that the market’s lack of a more significant sell-off could signal that investor sentiment is stabilizing.

Diverging Opinions on the Impact of Rate Hold

Crypto experts remain divided on how the Fed’s stance will affect the market’s future. While some, like trader Fejau, argue that zero rates and quantitative easing (QE) would be detrimental to altcoins, others, including Dan McArdle, co-founder of Messari, suggest that a stable economy with some credit expansion could provide a moderately risk-on environment for altcoin investments.

This perspective aligns with recent comments by Felix Hartmann, founder of Hartmann Capital, who believes the market is near a bottom. Hartmann pointed out that crypto funding rates have been negative for some time and that many quality altcoins have retraced to long-term trendlines, erasing much of their Q4 2024 gains.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.