Bitcoin and Ethereum prices fell as Cleveland Fed President Beth Hammack declared she does not see a need for rate cuts, emphasizing stability in the labor market despite recent job growth slowdowns. In a recent speech at the central bank’s annual meeting in Jackson Hole, Hammack stated that without clear signs of economic weakening, she would not support monetary easing. This has impacted traders' sentiment, reducing the likelihood of a rate cut in September from 92% to 73% over the past week. As a result, Bitcoin dipped to around $112,300, while Ethereum fell to $4,230. Hammack argued that focus should remain on inflation, noting that while job demand may be decreasing, so is labor supply. The Fed Chair Jerome Powell's upcoming speech is expected to reflect this cautious stance, with potential implications for cryptocurrency markets, indicating further caution in rate discussions could negatively impact high-risk assets like crypto in the immediate future.

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