Bitcoin prices and the broader complex of virtual currencies rose and the U.S. dollar fell on Friday, after a speech by Federal Reserve Chairman Jerome Powell was interpreted as bad or less inclined to promote a tightening aggressive financial conditions.
Bitcoin prices at the last check changed hands at $ 48,224, up 2.7%, while Ether on the Ethereum blockchain traded up 4% at $ 3,239 on Friday afternoon.
The moves for Bitcoin come after Fed Chairman Jerome Powell said he advocated starting to reduce central bank bond purchases implemented during the worst financial market disruptions in 2020, but said he does not anticipate that the central bank increase benchmark interest rates, which will currently soon be between 0% and 0.25%.
Powell’s comments may also offer the central bank some leeway to see at least one more report on non-farm payrolls before committing to developing easy money policies as the delta variant of the coronavirus spreads.
Take a look at: You need to know: This is what the Fed will do, if it follows what Powell said in last year’s Jackson Hole speech
“I thought, like most of the participants, that if the economy evolved as broadly as anticipated, it might be appropriate to start slowing down,” Powell said.
Equity markets have risen, with the S&P 500 SPX index,
and the Nasdaq Composite Index COMP,
climb new heights and the DIA Jones Industrial Average DJIA,
not far from their record highs.
Meanwhile, comments from the Fed chair have also fueled the purchase of government debt, with the 10-year benchmark treasury note TMUBMUSD10Y,
with a yield of 1.32%, compared to 1.34% the previous day.
Investors still believe that historically low borrowing costs will support risk-taking on Wall Street. This dynamic can be applied to digital stocks and assets like bitcoin, Ether and even meme assets like dogecoin DOGEUSD,
“The global crypto market is 3.0% higher over the past 24 hours, as the market appears to be responding positively to Fed Chairman Jerome Powell’s impoverished comments this morning,” cryptographic researchers wrote. Fundstrat Global Advisors, in a daily update.
The total value of the cryptocurrency market is about $ 2.1 trillion, maintaining its highest levels since May, according to data compiled by CoinMarketCap.com.
Bitcoin, however, continues to struggle after starting the week at around $ 50,000, its highest level since mid-May, a level that is beginning to form resistance for cryptography.