Both the market expectation for a rate increase and Jerome Powell‘s comments about the increase, then the market also reacted positively. Following Jerome Powell’s announcement that inflation had begun to slow down in the world‘s largest economy, Bitcoin broke through the $24,000 barrier and the crypto market cap rose nearly 4%.
For the first time, we can say the disinflationary process has begun […] and we see it in goods prices,” Powell said during a press conference shortly after announcing a 25-basis point increase in interest rates on Feb. 1.
Powell’s Comment and Jumps in Market cap
After Powell’s speech, the crypto markets saw their market cap jump by over $40 billion in the hours following the rate hike and Powell’s comments. The markets had shown sideways trading prior to the speech but had gained ground afterward.
According to the latest figure from Coinmarketcap, the Global crypto market cap is $1.09 trillion and up 3.88% in the last day.
- Powell’s announcement that inflation had begun to slow down in the world’s largest economy.
- Bitcoin broke through the $24,000.
- the crypto market cap rose nearly 4%.
- Federal Reserve attempts to bring inflation back to the target level of 2%.
According to Coinmarketcap, For the first time in 2023, BTC raised slightly to $24,000 and reached $24,161.27, and expects for an increase in rates.
Jerome Powell said, Still, they are expecting inflation for the remaining increase and so be prepared for the ”ongoing rises of rate”.
“The [services] sector is experiencing more persistent inflation, which will take longer to lower, but we must do it”. As the Federal Reserve attempts to bring inflation back to the target level of 2%, the rate of the ongoing rise would still become appropriate, said Powell
Deflation, on the other hand, refers to a decrease in the general level of prices of goods and services, as compared to disinflation, which refers to a slowdown in general price increases.