Federal Reserve Chairman Jerome Powell’s Speech Causes Brief Dip in Crypto Market

Federal Reserve Chairman Jerome Powell’s recent speech sent shockwaves through the crypto market, causing a brief dip before rebounding to previous highs. During his address, Powell stated that the Federal Reserve is not in a hurry to cut interest rates due to concerns about inflation and the strength of the US labor market.

This news triggered a minor decline in the crypto market, with Bitcoin (BTC) prices dropping 1.5% to $88,300 immediately after the address. Ethereum (ETH), the second-largest cryptocurrency by market capitalization, experienced a comparable decline in value, plummeting 3.2% over the preceding 24 hours.

However, the CoinDesk 20 Index, which tracks the performance of various digital assets, experienced a 0.5% surge in the past 24 hours, suggesting that the dip was largely contained. Meanwhile, Ripple’s (XRP) price rebounded, rising 13% on the day, potentially due to statements made by Gary Gensler, who is leaving the regulatory agency.

Despite the short-lived drop, the crypto market has still seen significant gains in recent days. Altcoins like Cardano (ADA), Ripple (XRP), NEAR, and XLM have recorded substantial gains, ranging from 20% to 40%. The market’s resilience is also demonstrated by the diminishing likelihood of a Federal Reserve rate cut at its next meeting in mid-December.

Investors can capitalize on the dip created by the current environment, as the market is currently in the midst of unsettling news about central banks’ monetary policies. For more insights and information on the crypto market and its relationship with central banks, read Federal Reserve Chairman Jerome Powell Speaks on Inflation and Interest Rates on CoinSeeks.com.

The current upswing could continue if investors keep up with the trend, given that cryptocurrencies are often seen as hedge funds against inflation and uncertain markets. At the end of the day, the crypto market’s ability to bounce back from Wednesday’s crash is a testament to its growing maturity and resilience.