Crypto Market Regains Momentum After Fed Dashes Early Rate Cut Hopes

17. Apr 2025 Posted by Laurent C. on News

The crypto market rebounded Thursday, stabilizing after a midweek slump driven by Fed Chair Jerome Powell’s signal that rate cuts won’t come anytime soon. The remarks, paired with mounting pressure from newly imposed U.S. tariffs, continue to stir uncertainty across global markets.

Bitcoin Climbs Back; Solana Leads the Pack

Bitcoin (BTC) regained ground, up 2% over the past 24 hours to nearly $84,500. Other major assets like Ethereum (ETH), XRP, Dogecoin (DOGE), and Binance’s BNB posted moderate gains between 1%-3%. Solana (SOL), however, stole the spotlight with a 6% rally, making it the top performer among the majors.

Further down the list, Hyperliquid’s HYPE posted an 8.5% surge despite no obvious catalyst, leading mid-cap gains. In contrast, Celestia’s TIA dropped 4%, likely weighed down by increasing sell pressure on long-unlock tokens, a trend intensified by Mantra DAO’s steep correction earlier this week.

Fed's Stance Shakes Markets

Jerome Powell’s comments suggest the Federal Reserve is taking a cautious stance, waiting to see the full economic impact of tariffs before making monetary policy adjustments. Analysts are warning that the combination of rising prices and slowing growth could steer the U.S. closer to stagflation — reminiscent of the 1970s economic malaise.

 

Technical Breakdown: Key Coins in Focus

Solana (SOL)
Solana saw a robust rally between April 11-14, rising 14.5% from $119.58 to $136.01. That spike, however, met resistance, leading to a corrective phase.

  • Trend: A descending resistance line has formed from the $136 peak.

  • Support Zone: $126-$127 range, with $125.67 being the critical level to hold.

  • Indicators: Weakening momentum suggests possible further downside if support breaks.

XRP
XRP made a sharp upward move, surging from $2.00 to $2.24 (11.7%) in under 24 hours before cooling off.

  • Support/Resistance: Resistance near $2.24, with support around $2.08.

  • Outlook: A bearish reversal and declining momentum hint at a consolidation phase.

  • Fibonacci Level: Price sits at the 61.8% retracement, a key stabilization area.

Ethereum (ETH)
ETH fluctuated sharply this week, with a price range of 7.8% from $1,546.87 to $1,666.50.

  • Pattern: Bearish double top formed after peaking at $1,690.

  • Volume: Heavy sell volume noted during April 14’s dip.

  • Key Levels: Resistance now at $1,625; watch for support at $1,585-$1,590.

Bottom Line

Crypto markets are clawing back after a rocky session triggered by Powell’s sobering comments and ongoing trade uncertainty. While the short-term technicals show signs of resilience, broader macroeconomic forces — including inflation fears and tariff policy — continue to dictate the pace. For now, the $80K+ zone for Bitcoin remains a critical battleground as traders await clearer signals from the Fed and global policymakers.