Bitcoin price increased by over $ 10,000 after the Federal Reserve chairman commented on crypto
Bitcoin price skyrocketed above $ 10,000 after Fed Chairman, Jerome Powell, announced his support for cryptocurrency projects. His comments led to a rise in the price of Bitcoin and fueled the debate about the future of digital currency.
When Jerome Powell started his testimony today, the Dow was up 125, & heading higher. As he spoke it drifted steadily downward, as usual, and is now at -15. Germany & other countries get paid to borrow money. We are more prime, but Fed Rate is too high, Dollar tough on exports.
— Donald J. Trump (@realDonaldTrump) February 11, 2020
Powell’s opinion started the rise in Bitcoin price
Jerome Powell is providing testimony to the House Financial Services Committee. While talking about the US economy and its monetary policy, he spoke about the need for private crypto transactions. What he said was a transparent ledger, where visible payments of people would not be attractive in the US.
Jerome Powell, Chairman of the Federal Reserve
He was asked by MP Bill Foster what is being done to keep up with China’s bold Blockchain plans. This question is based on the fear that the US dollar may lose its position as the planet’s strongest reserve currency.
Powell confirmed that the Fed currently has a lot of projects they are working on. Although no exact details have been given, there is a lot of effort made in the US to avoid falling behind in China.
He also pointed out that rapid progress in Blockchain development is needed. It seems that the appearance of Facebook Libra may be one of the game changers that has forced currency owners to look into the matter more urgently.
Powell has previously compared Bitcoin to gold. However, this is the first serious sign that the Fed is considering producing its cryptocurrency token.
How do Bitcoin price and cryptocurrency markets react?
The market immediately responded to Powell’s statement, with many Bitcoin supporters regularly celebrating Powell’s comments.
The Bitcoin price rise then began. The leading digital currency has surpassed $ 10,000 when it rose by 4%. At one point, it was up $ 500 within six hours. At press time, the price of Bitcoin is fluctuating around $ 10,263, up nearly 6% in the past 24 hours.
Some altcoins like Ethereum (ETH) and Litecoin (LTC) also make significant profits, as the entire cryptocurrency market has made positive moves. The fact that online searches for cryptocurrencies have risen sharply shows that more fiat can be transferred to the market. ETH has increased by over 11% in the past 24 hours, hovering at around $ 243. The top 10 cryptocurrencies also saw a significant growth of EOS with an increase of more than 10% during the day, recording a price of $ 5.32.
Native tokens are outperforming Bitcoin
So far, by 2020, the native tokens listed on these exchanges have easily exceeded Bitcoin. OKEx’s OKB has started trading the year for about $ 2.70. It currently costs more than $ 5.50. OKB’s momentum is mainly due to the burning of $ 700 million unreleased OKB tokens.
#Cryptocurrency exchange tokens have outperformed #bitcoin over the past 30 days. Thanks to a burn of 700 million unissued tokens, @OKEx‘s $OKB token is up 94%. $BNB is behind it after rising 62%, while $HT went up 49%.
— CryptoCompare (@CryptoCompare) February 11, 2020
A little worse but still better than Bitcoin in terms of the 2020 increase is Binance Coin (BNB) of Binance. The coin initially opened the year at less than $ 14. Only 42 days later, BNB costs more than $ 24.5. BNB is currently hovering around $ 25.52, up over 5% on the day. Binance’s outstanding performance in 2020 put it second in line with previous all-time highs among today’s top ten assets by market capitalization.
— intotheblock (@intotheblock) February 11, 2020
Finally, Huobi Token (HT), is also outperforming Bitcoin this year. Its profit itself is up 68% compared to January and early February, currently trading at around 4.62 dollars.
2020 is witnessing the revival of interest in cryptocurrencies. As AZCoin News reported, Google searches for Bitcoin have been developed, especially concerning the upcoming halving event. Many predict that a sudden supply cut will be a catalyst for higher Bitcoin prices.
It is unclear whether a crypto USD could be part of the future. However, the fact that such an essential figure in the financial world has acknowledged the importance of digital money is big news. The current Bitcoin price hike is a continuation of the great start it has made to 2020. Time will tell whether it will meet ambitious price predictions by analysts.
Disclaimer: This is not trading advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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