In recent times, the value of cryptocurrencies like Bitcoin and Ethereum has been taking a bit of a tumble. People are getting used to these drops, where prices can fall by over $1,000 in a short span. It's making investors a bit nervous. The drop this time might have something to do with what the folks at the Federal Reserve (Fed) are saying.

Towards the end of last year, some investors thought the Fed would reduce interest rates by 1.5% by 2024. Now, they've cut that prediction in half to 0.75%. But after seeing the inflation numbers from the first part of this year, the expectation for rate cuts in 2024 has dropped even more, down to just 0.5%, which is below what the Fed had in mind.

While the economy and job market seem pretty strong, the inflation numbers from the first quarter were not so great, according to Fed's Logan. He thinks there are risks that inflation could rise more than expected, and maybe they haven't tightened the money supply enough. So, there's talk of maybe not lowering interest rates just yet, and Logan even hints at the possibility of raising them. On the other hand, Fed's Kashkari is talking about how important artificial intelligence is for making things more efficient, while Bowman feels like they should keep things steady for a bit longer.

After all these discussions, Bitcoin's price took a hit, and Ethereum also dipped below $3,000 again.

In summary, cryptocurrency values are dropping, partly because of what's being said at the Fed. They're talking about inflation, interest rates, and keeping things steady for now. It's making investors a little unsure, and that's reflecting in the market prices.