Bitcoin and Ethereum Pull Back After Rally, Fed Rate Cut Expectations in Focus

Bitcoin (BTC) and Ethereum (ETH) prices have retreated following a strong start to January, as financial markets continue to adjust their expectations for potential interest rate cuts by the U.S. Federal Reserve. The initial surge in crypto markets, often linked to optimistic sentiment around looser monetary policy, has given way to a period of consolidation. Analysts note that this easing reflects a broader recalibration across risk assets, with investors closely monitoring economic data for clues on the Fed's timeline. The price action underscores the cryptocurrency market's ongoing sensitivity to traditional macroeconomic forces and central bank policy outlook.