Bitcoin Rises Above $22K as Powell Softens Tone on Second Day of Congressional Testimony

U.S. Federal Reserve Chairman Jerome Powell made a notable change in his prepared remarks during his testimony before the House Financial Services Committee on Wednesday. He emphasized that no decision has been made on the size of the rate hike when the Federal Open Market Committee meets later in March. This was a shift from his previous testimony on Tuesday, which had suggested that the Fed was likely to hike rates by 50 basis points, leading to a decline in Bitcoin and stock prices and a rally in the dollar.

However, Powell’s latest statement that “no decision has been made” may have helped soothe hawkish fears, as Bitcoin bounced back above $22,000 at $22,200, and the S&P 500 moved from a modest loss to a modest gain. The dollar also gave back some of its previous gains.

In his testimony, Powell also highlighted the importance of upcoming economic reports, such as this Friday’s February payrolls report and next week’s inflation figures, in guiding the rate decision. This suggests that the Fed is taking a data-driven approach and is not committed to any particular rate hike size at this point.

Overall, Powell’s comments have provided some relief to the markets, and Bitcoin has responded positively. It remains to be seen how the markets will react as more data becomes available and the FOMC meeting approaches, but for now, investors can take some comfort in Powell’s reassurances.

Powell Reminds Markets of Data-Driven Approach

Powell’s emphasis on the importance of upcoming economic reports in guiding the rate decision is a reminder that the Fed is taking a data-driven approach to monetary policy. This approach suggests that the Fed is open to adjusting its plans based on incoming data, which could help calm investor fears about a sudden or dramatic rate hike.

Bitcoin Bounces Back Above $22K

Bitcoin’s rise above $22,000 after Powell’s latest remarks suggests that investors are feeling more confident about the cryptocurrency’s prospects. However, it remains to be seen how Bitcoin will perform in the coming weeks and months, as market conditions continue to evolve.

Conclusion:

In conclusion, U.S. Federal Reserve Chairman Jerome Powell’s latest remarks have helped calm market fears about a potentially large rate hike in March. Bitcoin has responded positively, rising above $22,000, and the markets are showing signs of stability. Powell’s reminder that the Fed is taking a data-driven approach to monetary policy is a reassuring sign for investors, who may now be more confident in the markets’ future prospects.

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