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HomeNewsBTC Breaks $65K Barrier: FED's Powell's Rate Cut Signal Boosts Bitcoin

BTC Breaks $65K Barrier: FED’s Powell’s Rate Cut Signal Boosts Bitcoin

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  • Bitcoin (BTC) hit a daily high of $67,781, recording a recovery of more than 10% in just a few hours.
  • Ether (ETH) erased its previous 6% drop, boosted by news about a confidential investigation and the SEC.

The cryptocurrency markets witnessed a sharp rebound, with Bitcoin (BTC) targeting a remarkable $67,000 benchmark on Wednesday. This surge came in the wake of comments made by U.S. Federal Reserve Chair Jerome Powell, who maintained a dovish stance despite the central bank’s outlook for three rate cuts this year, in the face of hotter-than-expected inflation figures.

The Surge of Bitcoin and Ether

Bitcoin (BTC) astonishingly hit a daily high of $67,781, marking a recovery of more than 10% from the levels seen just hours earlier. Similarly, Ether (ETH) managed to erase a 6% dip experienced earlier in the day.

This dip had been triggered by news reports about the Ethereum Foundation facing a confidential inquiry from an unnamed government, alongside considerations by the U.S. Securities and Exchange Commission to classify the asset as a security.

Altcoins Join the Rally

Not to be left behind, altcoins such as Dogecoin (DOGE), Litecoin (LTC), and Bitcoin Cash (BCH) led the gains among major cryptocurrencies. This was largely attributed to the crypto community finally taking notice of a Coinbase plan to offer futures contracts on these currencies, a plan that had been posted on a U.S. regulator’s website several weeks prior.

Traditional Markets and Crypto Correlation

Interestingly, traditional markets also experienced an uplift alongside cryptocurrencies. The S&P 500 index jumped nearly 1% to hit a fresh all-time high, while the tech-heavy Nasdaq-100 gained 1.3%. Moreover, the U.S. dollar index (DXY) saw a decline of nearly 0.7% from its session high, indicating a greater risk appetite among investors.

The Impact on Crypto Markets

The crypto market’s sharp recovery can be attributed to a combination of factors. Firstly, the Federal Reserve’s decision to maintain a steady course on interest rates and rate cuts, despite inflation concerns, played a critical role.

Additionally, the resilience of traditional markets, particularly the S&P 500 and Nasdaq-100, contributed to boosting investor confidence across the board.

Analysis of Investor Sentiment

The recovery also highlighted a shift in investor sentiment. The initial risk aversion seen prior to the Fed’s decision gave way to a more optimistic outlook, as evidenced by the broad-market gains across both traditional and cryptocurrency markets.

The Role of Regulatory News

Furthermore, the regulatory news surrounding Ethereum and the potential classification of Ether as a security by the SEC did not deter the overall market recovery.

This suggests that, while regulatory scrutiny remains a significant factor for individual assets, the broader market can still find positive momentum through other developments.

Disclaimer: ETHNews does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to cryptocurrencies. ETHNews is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned.
Isai Alexei
Isai Alexei
As a content creator, Isai Alexei holds a degree in Marketing, providing a solid foundation for the exploration of technology and finance. Isai's journey into the crypto space began during academic years, where the transformative potential of blockchain technology was initially grasped. Intrigued, Isai delved deeper, ultimately making the inaugural cryptocurrency investment in Bitcoin. Witnessing the evolution of the crypto landscape has been both exciting and educational. Ethereum, with its smart contract capabilities, stands out as Isai's favorite, reflecting a genuine enthusiasm for cutting-edge web3 technologies. Business Email: info@ethnews.com Phone: +49 160 92211628
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