Bitcoin Surges on Powell's Comments, Regulator Hopes
Bitcoin extended its recent gains after the Federal Reserve's policy meeting and Chair Jerome Powell's remarks on crypto regulation. The largest cryptocurrency rose 1.3% to $105,134 as of 8:30 a.m. ET on Thursday, continuing its 3.5% climb from Wednesday.
Powell stated that banks can serve crypto customers effectively with appropriate risk management, emphasizing the need for greater regulation from Congress. His comments align with expectations of supportive crypto regulations under President Trump, who has been vocal in his support of the industry.
Tony Sycamore, Market Analyst at IG Australia Pty, attributed the surge to trader reaction to Powell's remarks. He noted that the Bitcoin rally shows signs of maturity after reaching a record high of $109,241 in January.
Bitcoin has gained over 50% since Trump's election victory, prompting speculation about potential consolidation or further growth. Developments such as CME Group's launch of futures products on Robinhood, along with proposals for crypto exchange-traded funds, suggest continued investor interest.
Nathan Dean, Senior Government Analyst at Bloomberg Intelligence, noted that Bitcoin's correlation with US tech stocks could have contributed to its rise, as Nasdaq 100 equity futures gained on Thursday due to positive earnings reports.