The crypto market stayed unsettled on February 17 as traders tracked macro signals. Bitcoin was near $67,000, while Ethereum changed hands at $1,980. The total market capitalization of all coins slipped 0.15% in 24 hours to more than $2.34 trillion.
Risk appetite remained fragile. The Crypto Fear and Greed Index stood deep in the extreme fear zone at 13, and the Altcoin Season Index was at 31, showing that sentiment had not recovered even as major tokens held relatively steady.
Goolsbee comments keep rate-cut expectations in focus
One of the main drivers was a dovish comment from Chicago Fed President Austan Goolsbee. He said there could be room for several rate cuts if inflation keeps moving back toward the Federal Reserve’s 2% target. He also made clear that policymakers still need confirmation from incoming data.
In his words, if the recent inflation pressure proves transitory and the economy remains on a path back to 2% inflation, he still believes that several more rate cuts could happen in 2026, though officials need to see the evidence first.
The remark came one day before the Federal Reserve was set to release the minutes from its last monetary policy meeting. For crypto traders, that matters. Rate expectations shape liquidity conditions, and liquidity has long been one of the strongest macro inputs for Bitcoin and the broader digital-asset market.
Inflation cools, but the market is split on how many cuts will come
Recent U.S. inflation data added to the debate. According to the Bureau of Labor Statistics, consumer inflation fell to 2.4% in January from 2.7%, while core CPI held at 2.5%. The report said inflation had been trending down from 3%, a move that could keep easing on the table in the months ahead.
Even so, expectations are not aligned. The latest Fed dot plot pointed to one rate cut this year, while Polymarket traders were pricing in three cuts. That gap helps explain why Bitcoin and altcoins were not making a decisive move despite softer inflation readings.
Bearish dollar positioning adds another macro signal
Another data point came from the foreign-exchange side. A Bank of America survey showed hedge funds turning more bearish on the U.S. dollar, with positioning among fund managers falling to its lowest level in more than a decade. In theory, a weaker dollar tends to support assets priced in dollars, including crypto.
The next scheduled catalyst is Wednesday’s Fed minutes. Traders are looking for detail on the last policy meeting and clues about what officials may do in upcoming meetings. Until then, the market appears stuck between softer inflation data and uncertainty over how quickly the Fed is willing to ease.