Federal Reserve officials are signaling that additional rate cuts may not come as quickly as some market participants had anticipated. Paulson's recent comments suggest the central bank is taking a more cautious approach to monetary policy adjustments, monitoring inflation data and economic indicators before making further moves.

For crypto investors, this has real implications. Rate hike pauses and delays typically mean extended periods of tighter liquidity conditions, which can suppress demand for high-risk assets like digital currencies. Conversely, when rate cuts finally arrive, they often trigger a recovery in risk-on sentiment and renewed capital flows into alternative assets.

The timing and pace of Fed policy shifts remain crucial factors for understanding Bitcoin, Ethereum, and broader altcoin market cycles. Those tracking macro trends should stay alert to any policy pivots—they've historically preceded major market rotations.