During a Thursday lunchtime address in New York, Fed Chair Jerome Powell made important comments hinting at no more future rate hikes in this monetary tightening cycle. As a result, investors in the crypto space have been cheering the development, with the broader cryptocurrency market gaining 3% over the last 24 hours.
Fed Interest Rate Hike Decision
As per the WSJ report, Federal Reserve Chair Jerome Powell has indicated that if the recent progress on inflation continues and long-term Treasury yields remain elevated, the central bank may pause its historic series of interest rate hikes.
His statements during a Thursday address in New York align with the sentiments expressed by fellow central bankers who have signaled their intention to keep short-term interest rates unchanged at the upcoming meeting scheduled for October 31 to November 1
The Fed chair stated that market uncertainties have indeed made their task complicated in maintaining a balance between tightening too much and tightening too little. He further boosted confidence among investors stating that the US economy remains resilient in the face of global macro challenges.
Powell also mentioned some green offshoots in terms of abating inflation and strong demand. Although Wall Street didn’t take Powell’s comments optimistically, the crypto market cheered.
Crypto Market Cheers
As said the broader cryptocurrency market is up 3% with Bitcoin making similar gains. The Bitcoin price is up 3.3% at press time eyeing a move to $30,000. As reported, BTC traders have been building long positions as per the Bitcoin options data.
On the other hand, altcoins have also joined the party enthusiastically. The major catalyst has been the developments in the ongoing XRP lawsuit, as the U.S. SEC decided to drop charges against Ripple executives, on Thursday. This development itself has pushed the XRP price up by over 8% and to $0.52.
On the other hand, other altcoins like Solana (SOL) have registered 10% gains giving a strong breakout. Altcoins are still presenting a good opportunity for investors to buy before the beginning of the next mega bull run in the crypto space.
