U.S Federal Reserve Chair Jerome Powell Hints at Interest Rate Hikes

• Since inflation is still over the central bank’s 2% objective, he predicted further rate rises.
• The likelihood of a rate rise of 25 basis points at the FOMC meeting on July 26th is high.

On Wednesday, Bitcoin and Ethereum values touched their highest point in six weeks, marking a general resurgence in the cryptocurrency market. In the previous day, the price of Bitcoin has increased by 8% to over $29,000, while the price of Ethereum has increased by 6% to over $1800.

Meanwhile, in testimony before the US House Financial Services Committee, US Federal Reserve Chair Jerome Powell indicated that the current hiatus in interest rate increases is only temporary. Since inflation is still over the central bank’s 2% objective, he predicted further rate rises. The likelihood of a rate rise of 25 basis points at the FOMC meeting on July 26th has increased to 80%, as reported by the CME FedWatch Tool.

Traders anticipated that prices would retrace again since it was another short squeeze event that triggered a strong market comeback.

Market Optimistic Over ETF Filings

After BlackRock iShares spot Bitcoin ETF filed with the US SEC last week, the market began to rebound, prompting other financial behemoths to file for Bitcoin ETFs. Institutional interest in the cryptocurrency market has contributed to a rising tide of optimism.

Bitcoin’s upward momentum continues as the cryptocurrency bounced back from the $24,800 support level. New purchasing activity from whales and institutional interest in cryptocurrency sent the price of Bitcoin soaring beyond $29,000 today.

On the other hand, in response to growing regulatory tensions led by the U.S regulatory body, the world’s largest cryptocurrency exchange, Binance, has announced the launch of a digital asset platform in Kazakhstan. Binance Kazakhstan and representatives from the Kazakh financial industry held a press conference on June 20, 2023, to announce the opening of the new platform.