The Federal Reserve Chairman Jerome Powell’s testimony to the US Senate may have triggered a price surge for Bitcoin (BTC) as the chart suddenly turned green.
Powell Still Uncertain About Inflation Direction
In the last 24 hours, BTC has registered a 2.99% increase and is currently trading for $57,453.86. This is a major breakthrough for the coin considering how much losses it has registered this past week from liquidations. Most of this selling pressure was triggered by Mt.Gox repayment and offloads by the United States and German governments. The new outlook of the coin is believed to be linked with recent conversations surrounding inflation in the US.
As part of his semiannual address to Congress on monetary policy, Federal Reserve Chair Jerome Powell spoke to the Senate Banking Committee on Tuesday. Before this speech, policymakers had requested more evidence that inflation is heading back to the 2% target. Therefore, a handful of them looked forward to Powell’s speech, scrutinizing closely for hints about what it will take to start easing.
For now, all the U.S. central bank chairman has said is 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 will continue on Wednesday before the House Financial Services Committee.
Beyond Bitcoin, Altcoins Registers Price Gains
It is worth noting that the Fed Chair’s statement reflects a tone of neutrality about interest rates and inflation. Still, it spurred the crypto market towards a positive sentiment.
Besides Bitcoin, other cryptocurrencies also registered gains between 2% to 13%. Ethereum is up by 3.45% and now trading at $3,065.99 although this surge is also fueled by anticipation for spot Ethereum ETF trading approval from the Securities and Exchange Commission (SEC). Solana is currently trading at $141.28 after nabbing a 3.53% surge within the last 24 hours.
PEPE, DOGE, TRON, BONK and SHIB have recorded a 1.92%, 1.60%, 3.28%, 10.35% and 2.02% increase respectively. It is not yet clear how long these digital currencies will sustain the sudden upside. Similarly, no offload has been registered by the German government at this time. Rather, it went ahead to accumulate more BTC. The market may enjoy some peace for now.
Meanwhile, Powell has made it clear that elevated inflation is not the only risk that the United States economy is faced with. He says that holding interest rates too high for too long could impact negatively on economic growth.
Read More: Ethereum Price Analysis Warns $2500 Breakdown As Bearish Pattern Emerges
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
