A senior Fed official recently weighed in on monetary policy direction, suggesting the central bank should pursue more than 100 basis points of rate cuts throughout the year. This hawkish pivot—or rather, a call for more aggressive easing—comes amid ongoing debates about inflation control versus economic stimulus.

For crypto traders and investors, Fed policy moves matter. Lower interest rates typically reduce the opportunity cost of holding non-yield-bearing assets like Bitcoin and Ethereum. When treasury yields decline, capital often rotates into higher-risk, higher-reward digital assets.

The 100+ basis point target is substantial. If realized, it would represent a meaningful shift in the Fed's stance, potentially signaling confidence that inflation is cooling faster than expected, or conversely, concern about economic slowdown requiring swift intervention.

Market participants are closely watching how these rate-cut expectations will play out in real time. Any significant Fed action tends to create either tailwinds or headwinds for the broader crypto market, affecting trading volumes, liquidation levels, and overall institutional participation.