Bitcoin, Ethereum, Doge coin surge after Powell's speech
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Why It Matters:Bitcoin, Ethereum, and Doge coin surged in a risky asset rally after U.S. Federal Reserve Chair Jerome Powell said in a speech Wednesday that the central bank could easing interest rate hikes.
Powell said that the time for a rate increase may come as soon as the December meeting.
On Wednesday, the S&P 500 and Nasdaq closed with 3.1% and 4.4% higher, according to the equities side. U.S. stock futures were seen in the green at the time of writing.
On Wednesday, Ethereum gained more than that of Bitcoin and Doge coin. Doge coin has gone up 31% on a weekly basis, while the price of the digital currency has gone up 3.5% and 9.2%.
The price action on the chart is the ONLY thing that makes an event like Powell's speech bullish, bearish, or neutral. It's been bullish so far. Bennett said that the second-largest coin has clean levels to work with.
The trader said that the trader needs to hold above $1,230 to stay constructive and close above $1,285 to open up $1,340.
Amsterdam-based trader Micha l van de Poppe said thatBitcoin and cryptocurrencies are ready for the relief rally and some upside. OANDA senior market analyst Edward Moya said that the focus for cryptocurrencies is shifting to coming legislation in a note seen by Benzinga.
The focus is on the future of the legislation that is most likely to be affected by the news flow, mostly downbeat for cryptocurrencies. He said that there was growing pressure on how to put guidelines in place to avoid another FTX moment.
Over the next couple of weeks we should get an idea of how the legislation will look, and that should ultimately be positive for the coinverse, but it could put added strain on some struggling cryptocurrencies companies or stablecoins. Santiment said on Twitter that there might be strong bullish support leading up to the December 13 -- 14 FOMC meetings. The market intelligence platform referred to the Federal Open Market Committee meeting on December 13 and 14th.
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