Bitcoin Reaches $62,000 Following Federal Reserve Chair’s Interest Rate Cut Indications
On Friday, the price of Bitcoin surged to $62,000 following indications from Jerome Powell, the Chair of the U.S. Federal Reserve, regarding a potential interest rate cut at the upcoming September meeting. The cryptocurrency reached a peak of $62,276 in value after Mr. Powell’s highly anticipated address at the annual Jackson Hole symposium in Wyoming, USA. At 12:30 p.m. EDT (16:30 GMT), Bitcoin was trading at approximately $61,500, reflecting a daily increase of 1.6%.
Simultaneously, Ethereum, recognized as the largest altcoin by market capitalization, was valued at $2,670, which denotes a daily rise of 2.2%. As per data compiled by CoinMarketCap, the total value of the cryptocurrency market reached $2.18 trillion, exhibiting a daily growth rate of 1.94%. Bitcoin maintained a market dominance of 55.7%, while Ethereum occupied 14.7% of the market share, with several altcoins experiencing noteworthy increases of up to 18%.
During his address, Mr. Powell expressed bolstered confidence in the assertion that inflation is returning to a sustainable trajectory toward the target rate of 2%. He remarked that the time had arrived for an adjustment in monetary policy. Furthermore, he indicated that the specific timing and rate of interest rate reductions would be contingent upon forthcoming macroeconomic data, the evolving economic landscape, and the associated risks.
It is pertinent to note that the cryptocurrency market faced significant downturns at the beginning of August, attributed to recessionary fears that triggered a worldwide decline in market values. Bitcoin notably plummeted to a low of $49,551 on August 5th. Overall, the current rebound in cryptocurrency values appears to be closely tied to investor sentiment surrounding monetary policy adjustments and inflation projections.
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