Bitcoin Rallies Following Fed Chair’s Remarks

The price of the leading cryptocurrency climbed back above $59,000 following a speech by Federal Reserve Chair Jerome Powell in the Senate.

Bitcoin’s value rose by 3.3% over the past day. The market capitalization increased by 2.5%, reaching $2.23 billion.

Ethereum’s price exceeded $3100. Despite a 7.6% decline over the past week, it has seen a 67% increase year-on-year, according to data.

Following Bitcoin, all major altcoins turned “green.” Key stock market indices such as the S&P 500 and Nasdaq 100 strengthened by approximately 0.2% over the past day.

During the Banking Committee hearing, Powell stated that the U.S. economy is “no longer overheated,” and the labor market has “significantly cooled” compared to the pandemic era.

He noted that the arguments for lowering interest rates are becoming increasingly compelling. The inflation rate has improved in recent months, providing grounds for easing monetary policy, Powell remarked.

Earlier, Citi forecasted the start of a cycle of Federal Reserve rate cuts in September.