- Bitcoin reached its highest trading level since November 15th, surpassing $17,000 before reversing course.
- After FTX failed this month, investor trust in cryptocurrencies plummeted.
- Powell’s speech at the Brookings Institution on Wednesday will also be keenly followed by traders.
Bitcoin (BTC) hit a two-week high on Wednesday as investors continued to think about the effects of the collapse of the cryptocurrency exchange FTX.
Bitcoin’s price jumped above $17,000, a level not seen in the past two weeks, as investors anticipated a speech by the chairman of the U.S. Federal Reserve that may signal a less aggressive monetary policy.
The world’s largest cryptocurrency by market capitalization briefly dipped below $15,000 a few days ago but has since recovered the $17,000 mark.
Given that the crypto market is currently dealing with FTX’s fall, the central bank’s monetary policy, and China’s ongoing problems caused by its tight COVID controls, the crypto asset’s rise is impressive.
Bitcoin’s price rose by as much as 3.78%, reaching $17,021.67, its highest price in two weeks. As of writing, CoinMarketCap shows that Bitcoin has moved below the $17,000 level and is trading up 2.30% at $16,890.27 with a 24-hour volume of $25,116,087,381.
Bitcoin Traders Anxiously Await Fed Chair’s Speech
The increase occurred before Federal Reserve Chair Jerome Powell’s anticipated speech, which many assume will confirm earlier predictions of lesser interest rate increases in the United States.
On Wednesday, Powell is scheduled to appear at a gathering organized by the Brooking Institution. Powell could bring up what Fed officials have indicated about the country’s slower-than-expected implementation of interest rates. If accurate, it would be a welcome change from the Federal Reserve’s typically aggressive monetary policy, which is thought to be a major factor in the recent decline in Bitcoin prices.
The Federal Reserve released the minutes from its most recent meeting last week, which sent the prices of many crypto assets through the roof. The minutes highlighted that smaller increases would enable authorities to evaluate the effects of the increment.
On the Flipside
Why You Should Care
The Fed Chair will speak on Wednesday, and the substance of his address will be eagerly followed by traders for hints about the Fed’s intentions for interest rates. There might be a positive impact on risky assets like stocks and cryptocurrencies if the market anticipates a slower pace of rate hikes.
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