Bitcoin and Ethereum jump as Fed Chairman signals slowing rate hikes

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Bitcoin and the broader crypto market surged on Wednesday after Federal Reserve Chairman Jerome Powell said in a speech that December would likely bring lower interest rate hikes.

The largest cryptocurrency by market capitalization was trading at $17,102 at the time of writing, up 2% in the hour after Powell’s speech and more than 4% in the past 24 hours. according to CoinGecko.

Ethereum, the second-largest digital asset, surged even further and was up over 6% in 24 hours, trading for $1,287.

All other major digital assets were up on Powell’s comments. The time to moderate the pace of rate hikes could come as early as the December meeting, he said.

The central bank has raised interest rates by 0.75 percentage points four times this year to rein in inflation, which is currently at its highest level in 40 years in the United States. The Fed, at its final meeting next month, is expected to raise interest rates by 0.50 percentage points.

The crypto market has closely followed US stocks this year. Indeed, investors largely view them as risky assets.

And with the Federal Reserve’s aggressive monetary policy to control inflation in the United States, it was better to avoid risk and turn instead to safe havens, such as the dollar.

The US dollar fell on Wednesday after Powells’ speech; US stocks rallied, with the S&P500 up 2%.

Trader Ryan Scott told Decrypt that it was clearer than ever that the Fed was going to slow down its tightening, but that it didn’t want to make it so explicit that it eased market conditions again, leading to a steep rise. power of action.

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