Bitcoin Surges to $29k as Fed Chair Hints at No Interest Rate Hike

• The latest statement by the Fed Chair ignites confidence in the crypto market as Bitcoin makes a jump toward $30k.

• According to Jerome Powell, there may be a halt in interest rate hikes when the inflation rate continues to perform. 

Bitcoin (BTC) gathers bullish momentum as it makes a 3 percent price surge in the last 24 hours to trade at $29,216.94. This incredible move brings its weekly gains to 9 percent. According to a price prediction platform, the asset now stands a huge chance of hitting as high as $52,602.87 before the year ends. On the average, Bitcoin can close the year at $43,835.73. At worst, Bitcoin can finish the year at $35,068.58.

Experts have linked the current rally to the recent hint by Fed Chair Jerome Powell that there may be no more rate hikes in the monetary tightening cycle. The comments come following the slight improvement in the inflation rate. Volatile food and energy costs, for instance, surged by 4.1 percent from a year earlier. In August, the rate was 4.3 percent. According to Powell, the long-term treasury yield and a continuous improvement in inflation could force the Central Bank to pause the interest rate hikes. 

More on Powell’s statement

During the Thursday address in New York, the Fed Chair admitted that the decision to maintain a balance between tightening too much and tightening too little has been difficult due to uncertainties. Even so, he stated that the US economy remains resilient despite the ongoing global challenges. 

We are attentive to recent data showing the resilience of economic growth and demand for labor. Additional evidence of persistently above-trend growth, or that tightness in the labor market is no longer easing, could put further progress on inflation at risk and could warrant further tightening of monetary policy.

Since the last Fed meeting, the US Job growth has accelerated rapidly contrary to predictions. Powell also admitted that the Fed cannot be sure of where the next inflation would settle. 

We cannot yet know how long these lower readings will persist, or where inflation will settle over the coming quarters. The path is likely to be bumpy and take some time…My colleagues and I are united in our commitment to bringing inflation down sustainably to 2%.

Altcoins Join Bitcoin in the Rally

The crypto market has reacted positively to this address as altcoins stage mini rallies. XRP has surged by 6 percent in the last 24 hours to trade at $0.510737. This asset has also benefited from the decision of the US Securities and Exchange Commission to drop its charges against the Ripple Labs executives. For now, XRP has no legal limitations and is the only altcoin in the US to have regulatory clarity as a non-security asset. 

Another altcoin that has made a significant surge in the last 24 hours is Solana. This asset has surged by 10 percent and 23 percent in the last seven days. Cardano (ADA) has also recorded a bullish market sentiment with a 2 percent surge in the last 24 hours and a 1 percent surge in the last seven days. Cardano currently has a market cap of $8,774,053,399, a 24-hour trading volume of $117,858,136, and a safety score of 73/100. 

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