Bitcoin hit the highest since August as investors interpreted US Federal Reserve chairman 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% and was trading at $US24 020 as of 9.35am in Singapore amid wider crypto gains, including a 3% climb in second-ranked ether. A gauge of the top 100 digital assets has added 37% this year.
A range of investments from stocks to bonds and crypto pushed higher after Powell said the disinflationary process is under way. 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.
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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.
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“Usage, adoption and innovation remain a much more positive picture than pricing and investor sentiment was reflecting this,” said Richard Galvin, co-founder of fund manager Digital Asset Capital Management.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry