ALBAWABA – Bitcoin, the first decentralized cryptocurrency, recorded a 5% increase on Friday, along with other cryptocurrencies, after the recent remarks of Jerome Powell, Chair of the Federal Reserve of the United States.
Interest rate cuts
Jerome Powell, Chair of the Federal Reserve of the United States, announced upcoming interest rate cuts to begin in September 2024. Following his latest remarks, Bitcoin and other cryptocurrencies saw a boost.
At the Kansas City Federal Reserve's annual symposium, the globe's premier economic gathering, Powell expressed confidence in managing inflation after it reached its highest levels in four years since 2022.
Bitcoin and other cryptocurrencies hike
Following Powell’s speech, Bitcoin recorded a boost of more than 5.59% reaching $63,720 per coin, while Ethereum increased by 2.9% to $2,685. Solana rose by 2.4% to $147 and Polkadot gained 2.7% on the same day.
Bitcoin recorded a boost of more than 5.59% reaching $63,720 per coin. (Shutterstock)
It is worth noting that traditional markets also saw strong gains with Nasdaq increasing by 1.7%, the S&P 500 increasing by 1.2%, and gold rising by 2%. Additionally, US 10 Year Treasury Yield fell by 5 basis points to 3.80% and the dollar index decreased by 0.6%.
The relationship between interest rates and cryptocurrency prices are known to be inverse. Bitcoin often experiences gains when interest rates decrease and market liquidity increases. When the Federal Reserve increased interest rates in 2022, it impacted market liquidity, Bitcoin, and stocks similarly.
