Bitcoin and Ether rose on Thursday morning in Asian trading, and all 10 cryptocurrencies were free in the traditional stock market, as the chairman of the Federal Reserve Jerome Powell said on Wednesday that the central bank may start reducing interest rate hikes.
● Bitcoin rose 4.4% to US $ 17,168 in the 24 hours of 8 am in Hong Kong to trade above US $ 17,000 for the first time in two weeks. Ether gained 6.5% to trade at US$1,395, according to CoinMarketCap.
● The total value of the crypto market is at $863, down 15.6% from $1,023 billion in Nov. 9, before the exchange FTX.com filed for bankruptcy. Total crypto exchange volume increased by 18.6% in the last 24 hours to $51.56 billion.
● US stocks also responded positively to Powell’s comments. The Dow Jones Industrial Average rose 2.2%, the Nasdaq Composite Index rose 4.4% and the S&P 500 index ended the day 3.1% lower to snap a three-day winning streak.
● The Fed has raised interest rates since March in an effort to keep rates from near zero to a 15-year high of 3.75% to 4%, and indicated that rates could eventually exceed 5%. The Fed has indicated that it will continue to raise rates until inflation gets closer to 2%. Consumer prices showed an increase of 7.7% in October, down from 8.2% in September.
● The Fed is expected to raise interest rates by 50 basis points at the December 13-14 meeting.
● The Fed may reduce its rates, but this may not have an immediate impact on the economy. Business leaders, including Tesla CEO Elon Musk, have warned about the possibility of an impending recession.
● “This incident is troubling. The Fed must immediately lower interest rates. They increase the risk of a recession,” Musk tweeted on Wednesday.
● November employment data from the United States is expected to be released on Friday, a key indicator of the impact of the Fed’s hawkish stance.