U.S. Federal Reserve Chair Jerome Powell Suggests Potential Increases in Interest Rates

• As inflation remains above the central bank’s 2% target, he forecasted additional rate increases.
• The probability of a 25 basis point rate hike at the FOMC meeting on July 26th is substantial.

On Wednesday, the values of Bitcoin and Ethereum reached their peak in six weeks, indicating a broader recovery in the cryptocurrency market. Over the previous day, Bitcoin’s price surged by 8% to exceed $29,000, while Ethereum’s price rose by 6% to surpass $1800.

In a testimony before the US House Financial Services Committee, US Federal Reserve Chair Jerome Powell suggested that the current pause in interest rate hikes is merely temporary. With inflation still above the central bank’s 2% target, he anticipated further rate increases. The probability of a 25 basis point hike at the FOMC meeting on July 26th has risen to 80%, according to the CME FedWatch Tool.

Traders expected that prices might pull back again, as it was another short squeeze event that triggered a significant market rebound.

Market Optimistic Over ETF Filings

Following BlackRock iShares’ submission of a spot Bitcoin ETF application to the US SEC last week, the market began to recover, encouraging other major financial institutions to file for Bitcoin ETFs. Institutional interest in the cryptocurrency sector has fostered a growing sense of optimism.

Bitcoin’s upward trajectory persists as the cryptocurrency rebounded from the $24,800 support level. Fresh buying activity from whales and institutional interest in cryptocurrency propelled Bitcoin’s price above $29,000 today.

Conversely, in light of increasing regulatory pressures from the U.S. regulatory body, Binance, the world’s largest cryptocurrency exchange, has announced the launch of a digital asset platform in Kazakhstan. Binance Kazakhstan and representatives from the Kazakh financial sector held a press conference on June 20, 2023, to unveil the new platform.