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.

Persistent macroeconomic uncertainty continues to limit risk appetite. Fed Chair Jerome Powell noted that while service inflation is improving, tariffs and goods-sector pressures still cloud the outlook. Although the recent government shutdown briefly slowed growth, a recovery is expected.

Crypto markets remained stagnant without a dovish signal, as policy sits near neutral. Consequently, investors are sidelined, waiting for firm evidence that inflation is sustainably hitting its target before they increase risk exposure.#FedHoldsRates #WhoIsNextFedChair #VIRBNB #ClawdbotSaysNoToken