- Bitcoin price gains over 5% to hover near $50,000 after key Federal Reserve update
- The Ethereum token surges 12% to cross $4,000 as the broader crypto market advances
What’s Today’s News in Crypto?
Bitcoin’s price surged over 5% to reach levels near $50,000 late on Wednesday. The upside swing arrived after traders cheered a press conference by Fed Chair Jerome Powell. In more detail, the US Federal Reserve had its final meeting of 2021.
During the press conference, Mr. Powell said the US central bank will leave rates unchanged at ultra-low levels. This easy-money policy has been largely responsible for the record-breaking rally in stocks but has also benefitted crypto assets.
Due to the large supply of money in the system, investors have had the opportunity to increase their holdings as they expand their portfolio. Cryptocurrencies like bitcoin and ether have been increasingly favored by market participants looking to put their money to work.
With the continuation of the current monetary policy in regards to low rates, the market saw further grounds for new gains. In other words, they interpreted the news as favorable towards cryptocurrency.
What’s the Price of Bitcoin?
As a result, the price of bitcoin reached a Wednesday high of $49,500 per token. Earlier in the session, the orange coin was pressured to a low of 46,500 apiece.
On Thursday, the original cryptocurrency hovers near $49,000 per coin as US traders are entering the session. During the early European hours, bitcoin peaked at a daily high of $49,300.
Ether, on the other hand, has performed even better. After the Fed Chair concluded his speech, the Ethereum token rallied over 6%. Further, Ether gained more than 12% from its low point on Wednesday. Presently, the second-biggest coin is changing hands near $4,000 as the broader cryptocurrency market is keeping steady after yesterday’s gains.
What is the Future of Cryptocurrency?
Back to the Fed meeting, Chairman Powell presented an accommodative stance towards cryptocurrencies. Even though he called them “risky speculative assets”, he noted the crypto space is not a “financial stability concern.” Moreover, he said the developments in the cryptocurrency market are certainly “worth following.”
In that context, economists point to a bright future for crypto adoption. Not only that, but due to the surge in demand for digital assets, investment banks are keen to offer bitcoin and other cryptocurrencies.
To this end, once regulations arrive, the crypto market is expected to grow further as many more join the nascent asset class. In conclusion, be sure to check our cryptocurrency buying guide where you’ll see how easy it is to hop aboard.