Major coins traded green on Wednesday late evening, as Federal Reserve Chairman Jerome Powell hints at ‘disinflation’. The global market cap went up 3.91% reaching $1.09 trillion, recorded at 8:30 p.m. EST.
What Happened: The largest cryptocurrency by market value Bitcoin BTC/USD traded at $24,001. Ethereum ETH/USD was changing hands at $1,680, up 5.96% in the last 24 hours.
Dogecoin DOGE/USD was up 0.08% in the last 24 hours, pushing its price up to $0.094.
U.S. equities rallied on Wednesday after Powell said for the first time that the disinflation process has begun. The tech-heavy Nasdaq Composite closed up 2%, and the S&P 500 and the Dow Jones Industrial Average (DJIA) rose 1.5 and 0.02% respectively.
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Despite a turbulent 2022, ARK Invest remains steadfast in its prediction that bitcoin prices will surpass $1 million by 2030.
Analyst Notes: “Bitcoin initially dropped after the Fed signaled policy will stay restrictive for some time. Risk appetite is struggling today and that is dragging down crypto. If inflation continues to ease at a healthy pace, the bull case for crypto will remain. Bitcoin turned positive as Powell didn’t fret over the recent easing of financial conditions. Powell didn’t go full hawk and that gave many traders permission to pile back into risky assets. Bitcoin has massive resistance at the $24,000 level but if that is breached, momentum traders may try to keep the rally going towards the $26,500 region,” said Edward Moya, senior analyst at OANDA, in a note seen by Benzinga.
Crypto analyst Kaleo said that Bitcoin’s move above the current range is likely to be “so violent” that the next real range above $24,000 will be within a higher range of $28,000 to $30,000.
According to Michaël van de Poppe, the crucial resistance level for Bitcoin remains at $23,300.
“Otherwise, I’m projecting a sweep at $22.3K and expecting to see $21.6K as a potential test here,” he said.