The mother of all cryptocurrencies Bitcoin (BTC) including several other digital assets managed to make a jump after the Chairman of the Federal Reserve (Fed) of the United States (US) Jerome Powell stated that he will reduce interest rate hikes at the December policy meeting.
As a result, BTC continued to climb 4% after Powell's speech where it is now trading at the $17,159 price zone while the second largest cryptocurrency Ethereum (ETH) gained 6% at $1,289 in the last 24 hours.
In fact, the movement of major digital assets also reacted when Powell intended to moderate interest rate hikes in the near term.
It is understood that US inflation is now at the highest level in 40 years following the central bank raising interest rates by 75 basis points for four consecutive meetings.
However, the situation may be different this time when the Fed is expected to raise interest rates by only 50 basis points for the last meeting of 2022.
This had a significant depreciation effect on the US dollar currency while the S&P500 rose by 2% following the speech.
Looking at the study, investors who have begun to consider crypto as a risky asset have resulted in the market now constantly following the movements of US equities.
That streak, most investors are more interested in the dollar than other assets because the Fed tightened monetary policy aggressively earlier to control inflation.
