Bitcoin’s price jumped above $17,000, a level not seen in the past two weeks, as investors anticipated a speech by the chairman of the U.S. Federal Reserve that may signal a less aggressive monetary policy.
The world’s largest cryptocurrency by market capitalization briefly dipped below $15,000 a few days ago but has since recovered the $17,000 mark.
After Sam Bankman-Fried’s FTX cryptocurrency exchange crumbled and declared bankruptcy earlier this month, investor confidence in the industry took a major hit.
Given that the crypto market is currently dealing with FTX’s fall, the central bank’s monetary policy, and China’s ongoing problems caused by its tight COVID controls, the crypto asset’s rise is impressive.
Bitcoin’s price rose by as much as 3.78%, reaching $17,021.67, its highest price in two weeks. As of writing, CoinMarketCap shows that Bitcoin has moved below the $17,000 level and is trading up 2.30% at $16,890.27 with a 24-hour volume of $25,116,087,381.
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The increase occurred before Federal Reserve Chair Jerome Powell’s anticipated speech, which many assume will confirm earlier predictions of lesser interest rate increases in the United States.
On Wednesday, Powell is scheduled to appear at a gathering organized by the Brooking Institution. Powell could bring up what Fed officials have indicated about the country’s slower-than-expected implementation of interest rates. If accurate, it would be a welcome change from the Federal Reserve’s typically aggressive monetary policy, which is thought to be a major factor in the recent decline in Bitcoin prices.
The Federal Reserve released the minutes from its most recent meeting last week, which sent the prices of many crypto assets through the roof. The minutes highlighted that smaller increases would enable authorities to evaluate the effects of the increment.
The implosion of the hedge fund Three Arrows Capital in January and the collapse of the algorithmic stablecoin terraUSD (UST) in May have contributed to the loss of more than $1.3 trillion in the value of cryptocurrencies this year. The situation has become much direr since the FTX crash.
The Fed Chair will speak on Wednesday, and the substance of his address will be eagerly followed by traders for hints about the Fed’s intentions for interest rates. There might be a positive impact on risky assets like stocks and cryptocurrencies if the market anticipates a slower pace of rate hikes.
Related market reads:
Crypto Founders Included in Forbes 30 Under 30 Despite Market Downturn
Tether Supply Drops $2B While USD Coin Rises
See original on DailyCoin
Source: Cryptocurrency - investing.com
