Bitcoin Extends Rally Following Powell's Comments on Crypto Regulation
Bitcoin extended its gains after the Federal Reserve's monetary policy meeting, where Chair Jerome Powell discussed crypto regulation.
Fed's Pause and Powell's Remarks
On Wednesday, Federal Reserve officials paused monetary easing. Powell indicated that the central bank would not consider further interest rate cuts until inflation shows improvement.
Powell commented on digital asset risks, stating that banks can serve crypto customers with proper risk management. He also suggested that congressional regulation of crypto would be constructive.
Bitcoin's Rally
Bitcoin rose 1% on Thursday, adding to its previous 3.5% gains. Analysts view the rally as maturing, indicating potential for further gains.
Bitcoin's record high of $109,241 was reached before President Trump's inauguration. Despite a subsequent decline, Bitcoin has gained over 50% since his election victory.
Wider US Engagement
Increased US engagement with crypto is seen as a positive sign for the industry. CME Group is launching futures products on Bitcoin and Ether through Robinhood, while investment firms are submitting proposals for crypto ETFs.
Correlation with Tech Shares
Bitcoin's recent price movements have correlated with US technology shares. On Thursday, it benefited from a rise in Nasdaq 100 equity futures as investors reacted to corporate earnings reports.