Bitcoin Jumps to Highest Since August in Post-Fed Crypto Rally

  • In Business
  • 2023-02-02 01:48:33Z
  • By Bloomberg

(Bloomberg) -- Bitcoin hit the highest since August as investors interpreted Federal Reserve Chair Jerome Powell's comments about progress on inflation as a sign that a less harsh monetary policy backdrop lies ahead.

Most Read from Bloomberg

  • Merck Covid Drug Linked to New Virus Mutations, Study Says

  • Porsche Blunder Puts $148,000 Sportscar on Sale for Just $18,000

  • National Archives Releases Records Tied to Trump Classified Documents

  • Plenty of Americans Are Drinking Bleach, Still for Sale on Amazon

  • 8,000 Layoffs Don't Exactly Scream Family Values

The largest token rose as much as 2.4% and was trading at $24,020 as of 9:35 a.m. 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 underway. 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.

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.

"Usage, adoption and innovation remain a much more positive picture than pricing and investor sentiment was reflecting," said Richard Galvin, co-founder of fund manager Digital Asset Capital Management.

For crypto market prices: CRYP; for top crypto news: TOP CRYPTO.

--With assistance from Sunil Jagtiani.

Most Read from Bloomberg Businessweek

  • Wall Street: We Want Lower Rates. The Fed: Not So Fast

  • A 3D Printer Isn't Cool. You Know What's Cool? A 3D-Printing Factory

  • Sean Penn's Disaster-Relief Charity Ended Up a Money Mess

  • A $500 Million Bet on Reinvigorating Japan's Aging Ski Industry

  • Spanish-Speaking Streamers Are the Hottest Thing on Twitch

©2023 Bloomberg L.P.


More Related News

Do bank failures mean the Fed should slow its interest rate hikes?
Do bank failures mean the Fed should slow its interest rate hikes?

Choosing between reining in inflation and financial stability

Futures rise as focus shifts to Fed after banks see relief
Futures rise as focus shifts to Fed after banks see relief

Traders now largely expect a 25-basis-points rate hike on Wednesday at the conclusion of the Federal Reserve's two-day meeting - a dramatic turnaround from a...

Mercedes Loses EU Court Case Over
Mercedes Loses EU Court Case Over 'Defeat Device' System in Cars

(Bloomberg) -- Mercedes-Benz Group AG suffered a setback in a dispute at the European Union's top court over its duty to compensate owners of cars equipped...

IMF Wants
IMF Wants 'Swift' Sri Lanka Debt Talks After $3 Billion Loan

(Bloomberg) -- The International Monetary Fund approved a $3 billion loan program for Sri Lanka to bolster its economy and urged for swift progress in talks ...

Asian stocks rise ahead of Fed
Asian stocks rise ahead of Fed's next interest rate decision

Asian stock markets followed Wall Street higher on Tuesday ahead of a Federal Reserve decision on another possible interest rate hike amid worries about...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply


Top News: Business