The running week for the cryptocurrency industry has been better than the past few weeks and it is all thanks to Jerome Powell.
The US Federal Reserve chair, Jerome Powell had positive comments to make about the upcoming interest rate hikes that helped the crypto market experience a slight rally.
Leniency on Interest Rate Hikes
The current week has been a promising one for the entire cryptocurrency market because of the supporting comments that have come from the Feds.
Last week, the entire cryptocurrency industry was moving downstream until the investors decided to hold their trading activities.
It was because the investors wanted to see what Powell had to say about the interest rate hikes in the upcoming months.
This is because the value of the dollar will start dropping as soon as the Feds lower the interest rates. This would eventually start pulling the trading price of the dollar versus the entire cryptocurrency industry.
Powell Commented in Favor of Crypto
It was not only the entire cryptocurrency industry but also the rest of the trading industries who rejoiced after Powell’s comments were posted.
Powell confirmed that although they won’t completely stop hiking the interest rates they will indeed lower their aggression. This meant that the interest rates will no longer be hiked by 75 bps on a monthly basis.
Now the investors are confident that the month of January will have low-interest rate hikes and they will have a cushion to freely spend their money.
With the interest rate hikes slowing down, things will start falling in favor of the investors who will start investing in cryptocurrencies.
Since June, the investors were bound by the interest rate hikes by 75 bps which put a lot of pressure on their spending. They had to plan their budget accordingly and crypto became the least of their worries.
With the interest rates expected to lower in the upcoming months, the cryptocurrency industry will continue experiencing uptrends.
Performance of Major Cryptocurrencies
Following the positive comments shared by the Feds, confidence has returned to the cryptocurrency industry. The investors are now confident that they will be able to run stronger rallies.
Therefore, the trading prices of the assets have started experiencing stronger gains. The situation has become quite promising for the entire cryptocurrency industry.
The major cryptocurrencies are all moving in the bullish zones. If Bitcoin moves into positive territory, it is obvious that the rest of the cryptocurrencies will start following it.
It has become a trend that the entire cryptocurrency industry tends to follow Bitcoin in terms of trend. This is the reason why Bitcoin is considered the trend-setting cryptocurrency in the industry.
Performance of Bitcoin and Ether
Due to the latest developments, the trading price of Bitcoin (BTC) and Ether (ETH) has surged quite remarkably.
Prior to the reports, the trading value of Bitcoin was hovering around $16.2k. However, as the surge has taken place, the trading price of BTC has surged over $17,200.
On the other hand, the trading price of ETH was hovering around $1.15k when the comments came from Powell. Right after the announcement, the trading price of ETH rose to a high of $1.3k.
The data suggests that the trading price of BTC surged by 5% while the trading price of ETH surged by 13%.
Performance of other Currencies
Other popular cryptocurrencies such as Binance Coin (BNB), Apecoin (APE), and Fantom (FTM) have also recorded strong gains.
A look at the performance of these assets suggests that the value of BNB has surged 5% throughout the week. However, APE and FTM have recorded very high gains in the same period.
Their prices have surged by 22% and 32% from the time of the announcement until now.
The trading price of Uniswap (UNI), Aave (AAVE), and many more tokens have surged tremendously since the announcement. These assets have recorded at least 10% rallies each.