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Bitcoin Rises as Investors Await Comments from Fed Chair Powell

2 mins
Updated by Ali Martinez
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In Brief

  • Bitcoin's market value is climbing, amid investors' anticipation of Federal Reserve Chairman Jerome Powell's upcoming comments to Congress.
  • The Federal Reserve's ongoing pause in its rate-hiking and the expected further rate hikes are adding to the optimistic sentiment around Bitcoin.
  • Global financial trends, like the UK's pending Bank of England interest rate decision and high US inflation rates, continue to influence the market.
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Bitcoin witnessed a steady climb as investors anticipate imminent insights from United States Federal Reserve Chairman Jerome Powell.

The forthcoming testimony, set to echo through the chambers of Congress, holds the potential to shape the future of Bitcoin and the entire crypto market.

Bitcoin Price Soars Ahead of Fed Chair Powell’s Testimony

Undeterred by previous rate hikes, eager investors continue to fuel the crypto market’s $20 billion capitalization surge, representing a 1.97% increase. Meanwhile, Bitcoin is witnessing an 800-unit upswing, or a rise of 2.81%, as of 10:00 UTC on Wednesday.

Crypto market observers keenly focus on Fed Chair Powell’s upcoming testimony before the House Financial Services Committee at 14:00 UTC.

Bitcoin and Crypto Market Cap
Bitcoin and Crypto Market Cap. Source: TradingView

Investors expect the forthcoming remarks from a series of Fed officials to provide a clearer perspective on the US economy. This interest builds upon the Federal Reserve’s recent pause in its rate-hiking campaign initiated in March 2022.

Despite its current halt, the strategy has signaled further rate hikes on the horizon. Per central bankers ‘ estimations, the prognosis for two additional increases of 25 basis points each this year lends a fresh, yet cautious, optimism to investors.

The unexpected surge in May’s housing starts and building permits fuels this confidence. Both exceeded forecasts, presenting potential indicators of a more robust US economy on the horizon.

Interest Rate Target Probability
Interest Rate Target Probability. Source: CME

However, it is not solely domestic fiscal health influencing Bitcoin’s allure. Global financial trends, such as the United Kingdom’s looming Bank of England interest rate decision and the surprisingly high US inflation figures — registering at a steeper than anticipated 8.7% for May — also sway investor sentiment.

Since economic data can unpredictably impact the crypto market, no significant revelations are anticipated this Wednesday.

As Fed Chair Powell’s statements loom large, Bitcoin’s rise underscores a delicate balance between investor anticipation, economic forecasts, and the undeniable influence of key decision-makers. The uptrend hangs in the balance, waiting for words that could spur further investment or inspire cautious withdrawal.

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Bary Rahma
Bary Rahma is a senior journalist at BeInCrypto, where she covers a broad spectrum of topics including crypto exchange-traded funds (ETFs), artificial intelligence (AI), tokenization of real-world assets (RWA), and the altcoin market. Prior to this, she was a content writer for Binance, producing in-depth research reports on cryptocurrency trends, market analysis, decentralized finance (DeFi), digital asset regulations, blockchain, initial coin offerings (ICOs), and tokenomics. Bary also...
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