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Bitcoin News: Bitcoin Reclaims $17K, Stocks Soar Following Powell Speech In Washington

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Bitcoin price quickly pushed above the $17,000 level and major US stock indices exploded higher on the heels of some of the most dovish remarks by Fed Chair Jerome Powell in nearly a year. 

Don’t Fight The Dovish Fed Tone Change

The quote “don’t fight the Fed” has never been more proven than in recent months, as the hawkish tone the head of the US central bank has sent cryptocurrencies and equities into a bear market.

Bitcoin fell from $69,000 to $15,500 after the Fed revealed its plan to increase interest rates and tame the worst consumer price inflation in over 40 years. 

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In a speech today at Hutchins Center on Fiscal and Monetary Policy, Brookings Institution, Washington, DC, Fed Chair Jerome Powell revealed the central bank would slow its aggressive rate hikes, beginning as soon as this upcoming December’s meeting. 

“It makes sense to moderate the pace of our rate increases as we approach the level of restraint that will be sufficient to bring inflation down,” Powell said. “The time for moderating the pace of rate increases may come as soon as the December meeting,” he added. 

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Bitcoin began to climb following Powell's remarks | Source: BTCUSD on TradingView.com

Bitcoin And Stock Market Sees Bounce But Beware

Markets responded strongly to the upside, with Bitcoin price taking back the $17,000 level. Ethereum gained 6% and other altcoins saw a relief rally. The Dow Jones Industrial Average closed 2% higher, the tech-heavy Nasdaq climbed 4%, and the S&P 500 added 3% and reclaimed its 200-day moving average. 

Despite the seemingly dovish talk from Powell, he reiterated the job isn’t done and restrictive rates are likely to remain for the longer-term. 

“It is likely that restoring price stability will require holding policy at a restrictive level for some time. History cautions strongly against prematurely loosening policy,” he said. “We will stay the course until the job is done,” Powell concluded. 

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Markets are turning optimistic and pricing in a potential half-point rate in December. The next Fed meeting takes place on December 14. 

Follow @TonySpilotroBTC on Twitter or join the TonyTradesBTC Telegram for exclusive daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice.

Featured image from iStockPhoto, Charts from TradingView.com



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Dani Romero has a legal background and has been involved in research works for the legal and compliance industry. Writing is his passion, centered on topics such as the blockchain and finance. His largest crypto holdings are Solana, Ethereum, and BNB Token.

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