Bitcoin jumps to highest since August in post-Fed crypto rally
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Bitcoin jumps to highest since August in post-Fed crypto rally

Bitcoin jumps to highest since August in post-Fed crypto rally

The largest token rose as much as 2.4 per cent and was trading at $24,020 in Singapore

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Bitcoin hit the highest since August as investors interpreted Federal Reserve Chair Jerome Powell’s comments about progress on inflation as a sign that a less harsh monetary policy backdrop lies ahead.

The largest token rose as much as 2.4 per cent and was trading at $24,020 as of 9:35am in Singapore amid wider crypto gains, including a 3 per cent climb in second-ranked Ether.

A gauge of the top 100 digital assets has added 37 per cent this year.

A range of investments from stocks to bonds and crypto pushed higher after Powell said the disinflationary process is underway.

He didn’t push back aggressively on a rally in global markets this year that’s loosened financial conditions, which can make it harder to temper price pressures.

He was speaking after the Fed downshifted as predicted to a quarter-point interest-rate hike.

Powell said policymakers expect to deliver a “couple” more rate rises before putting their aggressive tightening campaign on hold.

“Cryptocurrencies are rallying on risk-on sentiment after dovish comments from the Fed overnight,” said Cici Lu, founder of Venn Link Partners, a blockchain adviser. She added that she’s detected more purchases by institutional clients in recent weeks.

Digital assets are rebounding from steep losses last year, a period pockmarked by blowups like that of the FTX exchange.

“Usage, adoption and innovation remain a much more positive picture than pricing and investor sentiment was reflecting,” said Richard Galvin, co-founder of fund manager Digital Asset Capital Management.

Read: Bitcoin’s bearish futures are signalling a slowdown into 2023

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