Positive Momentum Retained After Powell’s Speech

Cryptocurrency markets continued to remain in positive momentum after Powell’s speech. While Powell’s messages in his comment yesterday were perceived as neutral, crypto markets reacted positively to this comment. In his speech, Fed Chairman Jerome Powell said that in 2023, he saw that inflation started to decline, but there is still a way to go. In addition, Powell said that more rate hikes are needed and that they estimate it may take a few years for inflation to reach the 2% target. Stating that the balance sheet reduction will take a few years, Powell emphasized that the Fed does not want to surprise the markets.

The cryptocurrencies, which were volatile in the time zone where Powell spoke, then turned their direction up again. Total market capitalization rose close to 3% yesterday to 1.08 trillion, and gains were seen to be preserved in the early hours of the day.

While Bitcoin rose 2% after the 5-day negative closing in yesterday’s transactions, it started to trade in the $23,000 band again in the morning.