Crypto Is Now Set For ‘Unbelievable’ Shock After $250 Billion Bitcoin, Ethereum, BNB, XRP, Cardano, Dogecoin, Polygon and Solana Price Surge
BitcoinBTC, ethereum and other major cryptocurrencies have surged into 2023, with the combined market adding around $250 billion – a rally some believe could have much longer to run.
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The bitcoin price is now hovering around $23,000 per bitcoin, up from under $17,000 at the start of the year. EthereumETH and other top ten cryptocurrencies BNBBNB, XRPXRP, cardano, dogecoin, polygon and solana have also rallied, with some smaller coins leaving bitcoin in the dust.
Now, after last week’s red-hot US jobs report sparked fears of a return to aggressive interest rate hikes by the Federal Reserve, Fed Chair Jerome Powell is set to deliver a speech tomorrow in which he could deliver a wake-up call to bitcoin, ethereum, crypto and stock markets .
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“Bitcoin continues to lose momentum after the stronger-than-expected jobs report in January forced the market to brace for two more rate hikes,” Yuya Hasegawa, crypto market analyst at Tokyo-based Bitbank, said in an emailed statement.
Friday’s nonfarm payrolls report showed the U.S. added just over 500,000 jobs in January, blowing an estimate of under 200,000 out of the water. Earlier this week, Powell announced a quarter-percent interest rate hike, the eighth straight increase but the smallest increase since March, and warned that “the job” — of stopping inflation — “is not quite done.”
However, Powell’s comments were taken by the market to be more dovish than expected, sending bitcoin, ethereum, crypto and stocks sharply higher.
The jobs report “was an incredible surprise, and it raises a lot of questions about what the Fed is going to do next,” said Kristina Hooper, chief global market strategist at Invesco. Reuters. “What I think is causing some of the volatility is markets trying to understand how the Fed will perceive this.”
Tomorrow, Powell will give a speech that will be closely watched for signs that he has turned hawkish in the face of a booming labor market. On Wednesday, the president of the Federal Reserve Bank of New York, John Williams, will also give a speech.
“Given last week’s failure to quell the market’s optimistic rate outlook, Fed members will likely continue to remind the market that the Federal Funds rate will climb above 5% and will be held there throughout the year,” Hasegawa added.
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Although last week’s surprisingly strong jobs data sparked fears of aggressive Federal Reserve action, some believe the better-than-expected numbers may just be “seasonal noise.”
“The 517,000 increase in total employment was almost certainly a function of seasonal noise and traditional attrition in the job and wage environment at the start of the year, exaggerating what is already a robust trend in hiring,” said Joe Brusuelas, chief economist at consulting firm RSM US, in a client note seen by Politico.
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