January 12, 2022

Powell's Speech Brings Shine For Crypto Investors?

 The movement of its main cryptocurrency, Bitcoin (BTC) showed rays with a jump of over 4% to a daily high, $ 43,101 last night from a daily low, $ 41,285 yesterday.

The speech of the chairman of the Federal Reserve (The Fed), Jerome Powell seems to have had a positive impact on the price of BTC, including the altcoins market.

What happen?

It is understood the Fed has decided to deal with high inflation. This means that the central bank will reduce its balance sheet this year.

At the same time, the entire market is also awaiting the US Consumer Price Index (CPI) report which is expected to be announced today.

The expectation for CPI for December 2021 increased 0.5% month -on -month to 7.1%.

Cryptocurrency market movements

For the record, Bitcoin exhibited volatile price movements after the announcement of the CPI two months ago.

So it is not surprising why some investors see BTC as a risky asset, just like stocks that are ‘sensitive’ with monetary policy tightened due to high inflation.

However, The Fed’s decision last night contributed to the BTC price spike, followed by Ethereum (ETH) which jumped nearly 5%, trading at $ 3,232; Solana (SOL) - $ 139.93 (+3.3%); Cardano (ADA) - $ 1.20 (+4.36%); XRP - $ 0.77; and Terra (LUNA) - $ 72.59 (+3.83%).

Meanwhile, Binance Coin (BNB) and Polkadot (DOT) became two crypto assets that recorded a jump of over 5%in 24 hours with each trading at $ 461, up 8.55%, and $ 25.70, up 8.12%.

However, Internet Computer (ICP) and Chainlink (LINK) recorded declines. They were down nearly 7%, respectively, trading at $ 32.95 and down nearly 5%, trading at $ 26.56.