Bitcoin (BTC) experienced a significant boost in its price trajectory, surpassing $29,500 on October 20th. This surge came after an eventful 24 hours in the cryptocurrency market. Meanwhile, XRP (XRP) also saw a price jump, trading above $0.50, in response to Ripple’s legal victory.
Throughout the week, BTC/USD tracked closely on Cointelegraph Markets Pro and TradingView, inching closer to reaching two-month highs. The largest cryptocurrency appeared to be influenced by events surrounding a speech from Jerome Powell, the chair of the United States Federal Reserve, the day before.
With the ongoing U.S. bond rout, Powell was under pressure to deliver a suitable statement. Market analysis predicted a “very dovish” tone from Powell, which would dominate his speech. However, Powell’s speech, which was briefly interrupted by protestors, revealed a highly conservative outlook.
Powell stated that the current policy stance is restrictive, implying that tight monetary policy is exerting downward pressure on economic activity and inflation. He also acknowledged the potential risks of hiking interest rates too far. Powell emphasized that the Federal Reserve must tread carefully, considering the uncertainties and potential harm to the economy.
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Following Powell’s speech, market expectations regarding future rate decisions shifted. Data from CME Group’s FedWatch Tool showed that the Federal Open Market Committee (FOMC) is now unanimously expected to hold rates at their current levels during their next meeting on November 1st. Before Powell’s speech, the odds of a rate hold stood at 88%.
In addition to Powell’s speech, news broke that U.S. regulators had dropped criminal charges against executives of Ripple, a blockchain firm. This development had an immediate impact on the price of XRP, which saw a 6% increase in the 24 hours following the news.
Amid the anticipation surrounding the potential approval of a U.S. Bitcoin spot price exchange-traded fund (ETF), Bitcoin gained momentum overnight. Traders and analysts observed a positive trend and suggested that Bitcoin was on the verge of a significant upward movement.
Popular trader Jelle expressed optimism about Bitcoin’s price movement, stating that it was slowly but surely filling the wick and aiming for a tap of $30,000. Other traders, such as CrypNuevo, warned about the possibility of a retracement during the U.S. trading session, citing liquidation data and the ratio of long positions to shorts.
It’s important to note that this article does not provide investment advice or recommendations. Investing and trading in cryptocurrencies carry risks, and individuals should conduct their own research before making any financial decisions.
In conclusion, Bitcoin experienced a surge in price following an eventful 24 hours in the cryptocurrency market. The influence of Jerome Powell’s speech and the dismissal of charges against Ripple executives contributed to BTC’s upward trajectory. Traders and analysts remain cautiously optimistic about Bitcoin’s future movement, with some predicting a significant increase in price. However, it’s essential for individuals to conduct thorough research and assessment of the risks involved in cryptocurrency investments.
