The Federal Reserve Chairman Jerome Powell’s pro-inflation stance has led to a bullish surge in the price of Bitcoin.
The price surge for Bitcoin (BTC) may have been precipitated by the testimony of Federal Reserve Chairman Jerome Powell to the U.S. Senate, as the chart abruptly transitioned to green.
Powell remains uncertain about the direction of inflation
BTC has experienced a 2.99% increase in the past 24 hours and is currently trading at $57,453.86. This is a significant development for the coin, given the substantial losses it has experienced from liquidations over the past week. The primary factors that initiated most of this selling pressure were the United States and German governments’ repayment and offloading of Mt.Gox. Recent discussions concerning inflation in the United States are believed to have impacted the coin’s new outlook.
Federal Reserve Chair Jerome Powell addressed the Senate Banking Committee on Tuesday as part of his semiannual address to Congress on monetary policy. Policymakers had requested additional evidence that inflation is returning to the 2% target before this speech. Therefore, a small number of them eagerly anticipated Powell’s speech, examining it closely for any indications of the steps necessary to initiate the relief process.
The chairman of the U.S. central bank has stated that he and his colleagues “want to be more confident that inflation is moving sustainably down toward 2% before we start the process of reducing or loosening policy.” Powell’s testimony before the House Financial Services Committee will continue on Wednesday.
Altcoins Also Experience Price Increases
Acknowledging that the Fed Chair’s statement conveys a neutral stance regarding inflation and interest rates is essential. Nevertheless, it served as an incentive for the cryptocurrency market to adopt a more optimistic outlook.
In addition to Bitcoin, other cryptocurrencies experienced gains ranging from 2% to 13%. Although this surge is also driven by the anticipation of spot Ethereum ETF trading approval from the Securities and Exchange Commission (SEC), Ethereum is currently trading at $3,065.99, a 3.45% increase. Solana is trading at $141.28, following a 3.53% increase in the past 24 hours.
PEPE, DOGE, TRON, BONK, and SHIB have each experienced a 1.92%, 1.60%, 3.28%, 10.35%, and 2.02% increase, respectively. It needs to be determined how still being determined these digital currencies will maintain their abrupt increase. Similarly, the German government still needs to register still needs to register offload. Instead, it proceeded to accumulate additional Bitcoin. Currently, the market may experience a period of tranquility.
In the interim, Powell has emphasized that the United States economy is confronted with various risks, including elevated inflation. He asserts that maintaining interest rates at an excessively high level may adversely affect economic growth for an extended period.
