Breaking: The Crypto Market rose up but fell soon after Powell’s speech by the U.S. Fed Chair
On Tuesday, the crypto market saw a significant increase after Federal Reserve Chair Jerome Powell answered macroeconomic question regarding the United States at The Economic Club of Washington. The S&P 500 Index increased 0.65% due to the Fed Chair’s statements. The ever-volatile digital asset market saw a 0.66% increase, with the market cap reaching $1.08 trillion.
The Crypto Market Goes Green
The announcement resulted in Bitcoin (BTC) climbing to $23,311 from £22,960. Ethereum (ETH), the altcoin supremo, saw its price rise from $1,616 up to $1,666.
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The prices of flagship cryptocurrencies like XRP, Solana and Dogecoin saw a significant increase within minutes of the announcement. Among the top 150 coins in market value, Shiba Inu, Fantom, Optimism, Optimism, Terra (LUNA), Quant (QNT), and Optimism were the most popular. Some of these coins fell by more than 3% within the hour.
Powell’s Bullish Outlook
David Rubenstein, co-founder of Carlyle Group was quick to respond to questions. He started by asking if the Federal Reserve’s decision last Friday to raise its benchmark Federal funds rates by only 25 basis points could be altered by last Friday’s blowout job report, which showed a 517,000 job increase. Powell stated that there was little chance that the news would have led to a change.
Powell spoke about the current state in the country and stated that the U.S. is clearly slowing down from the 2021 record-setting growth rates. This was due to the reopening after the pandemic recession. Powell believes the economy is showing strong underlying momentum, despite mixed economic data. The Fed Chair says the labor market is especially strong with 517,000 new jobs added in January.
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