GBP/USD attracts some sellers below 1.2620 on Fed Waller’s hawkish comments
Source Fxstreet
- GBP/USD remains under pressure around 1.2614 following hawkish comments from Fed’s official on Thursday.
- Fed’s Waller said there is no rush to cut the rate and may need to maintain the current rate for longer than expected.
- The dovish comments from BoE’s Bailey about rate cuts weigh on GBP.
- Investors will focus on the BoE's Mann speech, final UK Q4 GDP, and US GDP annualized data, due on Thursday.
The GBP/USD pair attracts some sellers to 1.2614 after retreating from a daily high of 1.2640 during the early Asian session on Thursday. The sell-off of the major pair is backed by recent hawkish comments from US Federal Reserve (Fed) official, affirming the higher-for-longer stance and no need to rush the rate cuts.
Early Wednesday, Fed Governor Christopher Waller said that the US central bank is in no rush to cut the benchmark rate and may need to “maintain the current rate target for longer than expected.” Waller emphasized that the Fed is in no rush to cut the policy rate as it’s prudent to hold its restrictive stance for longer than previously expected to bring down inflation to the 2% target. His hawkish comments boost the Greenback higher to 104.45 and weigh on the major pair.
On the other hand, the Bank of England (BoE) held the interest rate unchanged at 5.25% for the fifth meeting in a row last week. The UK central bank turned dovish on the interest rate outlook, and this has exerted some selling pressure on the Pound Sterling (GBP). The BoE Governor Andrew Bailey said that interest rate cuts will be ‘in play’ at future BoE policy meetings.
Market players will monitor the speech by BoE's C. Mann and the final UK Gross Domestic Product (GDP) growth numbers for Q4 on Thursday. Any dovish comments from the BoE policymaker or the weaker-than-expected GDP number might extend the selling pressure on the GBP. On the US docket, the GDP annualized number, the weekly Initial Jobless Claims and the Michigan Consumer Sentiment Index will be due later in the day.
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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Bitcoin briefly loses 2025 gains as crypto plunges over the weekend.Bitcoin experienced a sharp decline this weekend, briefly erasing its 2025 gains and dipping below its year-opening value of $93,507. The cryptocurrency fell to a low of $93,029 on Sunday, representing a 25% drop from its all-time high in October. Although it has rebounded slightly to around $94,209, the pressures on the market remain significant.
The downturn occurred despite the reopening of the U.S. government on Thursday, which many had hoped would provide essential support for crypto markets. This year initially appeared promising for cryptocurrencies, particularly after the inauguration of President Donald Trump, who has established the most pro-crypto administration thus far. However, ongoing political tensions—including Trump's tariff strategies and the recent government shutdown, lasting a historic 43 days—have contributed to several rapid price pullbacks for Bitcoin throughout the year.
Market dynamics are also being influenced by Bitcoin whales—investors holding large amounts of Bitcoin—who have been offloading portions of their assets, consequently stalling price rallies even as positive regulatory developments emerge. Despite these sell-offs, analysts from Glassnode argue that this behavior aligns with typical patterns seen among long-term investors during the concluding stages of bull markets, suggesting it is not indicative of a mass exodus.
Notably, Bitcoin is not alone in its struggles, as Ethereum and Solana have also recorded declines of 7.95% and 28.3%, respectively, since the start of the year, while numerous altcoins have faced even steeper losses.
Looking ahead, questions linger regarding the viability of the four-year cycle thesis, particularly given the increasing institutional support and regulatory frameworks now in place in the crypto landscape. Matt Hougan, chief investment officer at Bitwise, remains optimistic, suggesting a potential Bitcoin resurgence in 2026 driven by the “debasement trade” thesis and a broader trend toward increased adoption of stablecoins, tokenization, and decentralized finance. Hougan emphasized the soundness of the underlying fundamentals, pointing to a positive outlook for the sector in the longer term.
Bitcoin experienced a sharp decline this weekend, briefly erasing its 2025 gains and dipping below its year-opening value of $93,507. The cryptocurrency fell to a low of $93,029 on Sunday, representing a 25% drop from its all-time high in October. Although it has rebounded slightly to around $94,209, the pressures on the market remain significant.
The downturn occurred despite the reopening of the U.S. government on Thursday, which many had hoped would provide essential support for crypto markets. This year initially appeared promising for cryptocurrencies, particularly after the inauguration of President Donald Trump, who has established the most pro-crypto administration thus far. However, ongoing political tensions—including Trump's tariff strategies and the recent government shutdown, lasting a historic 43 days—have contributed to several rapid price pullbacks for Bitcoin throughout the year.
Market dynamics are also being influenced by Bitcoin whales—investors holding large amounts of Bitcoin—who have been offloading portions of their assets, consequently stalling price rallies even as positive regulatory developments emerge. Despite these sell-offs, analysts from Glassnode argue that this behavior aligns with typical patterns seen among long-term investors during the concluding stages of bull markets, suggesting it is not indicative of a mass exodus.
Notably, Bitcoin is not alone in its struggles, as Ethereum and Solana have also recorded declines of 7.95% and 28.3%, respectively, since the start of the year, while numerous altcoins have faced even steeper losses.
Looking ahead, questions linger regarding the viability of the four-year cycle thesis, particularly given the increasing institutional support and regulatory frameworks now in place in the crypto landscape. Matt Hougan, chief investment officer at Bitwise, remains optimistic, suggesting a potential Bitcoin resurgence in 2026 driven by the “debasement trade” thesis and a broader trend toward increased adoption of stablecoins, tokenization, and decentralized finance. Hougan emphasized the soundness of the underlying fundamentals, pointing to a positive outlook for the sector in the longer term.
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Ethereum is trading near $3,150 and just 8% above a key $2,895 long-term holders’ cost basis, with on-chain flows, macro uncertainty and support around $3,000–$2,800 all shaping what comes next for ETH.
