The cryptocurrency market is experiencing a significant uptick following Federal Reserve Chair, Jerome Powell’s, endorsement and as Wall Street institutions steadily march towards incorporating this technology.
Bitcoin and Ethereum Experience Increase
Bitcoin, the leading cryptocurrency, has experienced an 8% rise and crossed the crucial threshold of $30,000 for the first time since mid-April. Concurrently, Ethereum’s Ether escalated by over 5% to $1,877, its highest point since last June, according to data from CoinGecko.
Powell’s Statement Fuels Market Momentum
This robust market momentum follows Powell’s assertions during his testimony before lawmakers on Wednesday. The Fed Chair expressed his view that cryptocurrency appears to exhibit the potential to endure as an asset class. “We see stablecoins as a form of money,” Powell stated, signifying a shift in perception of digital assets at the highest levels of financial governance.
Moreover, Powell indicated that inflation still has considerable ground to cover before reducing to a target level of 2%. However, he suggested that the central bank’s policy is likely to adapt in line with the tapering of inflation.
Entry of Financial Powerhouses into the Crypto Space
The market swell has coincided with the entry of powerhouse firms like Fidelity, Charles Schwab, and Citadel Securities into the digital asset arena via their involvement with the non-custodial crypto exchange, EDX. Furthermore, the investment management corporation BlackRock submitted an application last Thursday for a Bitcoin-based ETF.
Following BlackRock’s lead, other large financial institutions have also begun filing their own petitions for Bitcoin ETFs, indicating a broader shift towards acceptance of cryptocurrencies within traditional finance.
Other Cryptocurrencies Experience Growth
Cryptocurrencies within the top ten by market capitalization, excluding stablecoins, are all registering gains of at least 2%. This includes a more than 7% increase by Cardano’s ADA and almost a 5% gain by Solana’s SOL. These gains demonstrate that the market’s enthusiasm extends beyond just Bitcoin and Ethereum.
The rally of the cryptocurrency market indicates a significant turning point, with growing acceptance from financial authorities like the Federal Reserve and increased adoption by Wall Street institutions. This newfound endorsement and adoption of cryptocurrencies could potentially herald a new era for the world of digital assets.
