Bitcoin Surpasses $29,500 as Ripple Celebrates Legal Victory, Market Reacts to Powell's Speech
Summary:
On October 20, Bitcoin's price surged past $29,500 as XRP also saw a price increase following a legal victory for Ripple. The anticipated speech from the U.S. Federal Reserve Chair, Jerome Powell, led to shifts in market expectations concerning interest rates. Meanwhile, the prospect of the approval of a U.S. Bitcoin spot price exchange-traded fund allotted more momentum to Bitcoin's price. However, the potential for major liquidations and a tentative retracement during U.S. trading hours lingers.
On October 20, Bitcoin (BTC) celebrated a surge past $29,500, rejuvenating the BTC price trajectory, while Ripple's successful court ruling prompted a rise in XRP price over $0.50. This activity comes amidst a busy 24 hours of crypto market movements as BTC/USD moves towards two-month highs that were seen at the start of the week.
The world's largest digital currency appeared to capitalize on the buzz surrounding a speech by the U.S. Federal Reserve Chairman, Jerome Powell, from the day before. Amid a slump in U.S. bonds, Powell's carefully chosen words were highly anticipated, with some expecting a distinctly cautious tone.
Powell lived up to these expectations during the speech, albeit with some interruptions. He took a cautious stance, particularly towards interest rate hikes, explaining how they pose a downward pressure on the economy and inflation. He warned that despite the rapid pace of policy tightening, more significant tightening might still be on the horizon.
Despite the uncertainties and risks, Powell confirmed that the Federal Open Market Committee (FOMC) plans to proceed thoughtfully. This cautious approach was reflected in shifts within market expectations for future rate adjustments, as shown by data from CME Group’s FedWatch Tool. This data now illustrates a unanimous belief that rates will remain unaltered at the next meeting on Nov. 1.
In other news, U.S. authorities decided to drop criminal charges against the executives of blockchain company Ripple, triggering a more than 6% rise in the price of XRP within 24 hours.
Meanwhile, expectations for the approval of a U.S. Bitcoin spot price exchange-traded fund (ETF) fuelled Bitcoin's overnight momentum. The highest point of the day reached $29,689, hovering just shy of the volatility peak seen on October 17.
There's growing anticipation for Bitcoin's next move, with predictions suggesting an upward trend. Traders have pointed towards Bitcoin’s desire to fill the October 17 volatility gap. However, potential upcoming liquidations and Bitcoin's speculated retracement during U.S. trading hours could change the scenario.
Note: This article is intended for informational purposes only and should not be construed as investment advice or recommendations. All investment and trading actions carry risk; therefore, readers must conduct independent research before making decisions.
Published At
10/20/2023 8:31:36 AM
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