Bitcoin (BTC) reached a milestone by surpassing $29,500 on October 20, following a series of events that influenced its price trajectory. Concurrently, XRP’s (XRP) price also experienced a surge, jumping above $0.50 as a response to Ripple’s legal victory.
The rise in BTC’s price can be attributed to the impact of Jerome Powell’s speech, the Chair of the United States Federal Reserve, which took place the day before. The largest cryptocurrency seemed to feed off the events surrounding Powell’s speech, as it edged closer to two-month highs at the beginning of the week.
In his speech, Powell faced pressure to deliver the appropriate wording amid a U.S. bond rout. Some analysts predicted a “very dovish” tone, but the speech turned out to be highly conservative regarding the economic outlook and interest rate hikes. Powell acknowledged the potential problems of raising rates too far and emphasized the need for caution.
Following Powell’s speech, market expectations for future rate decisions witnessed a shift. Data from CME Group’s FedWatch Tool showed that the Federal Open Market Committee (FOMC) is now unanimously expected to maintain current interest rates at its next meeting on November 1. Prior to Powell’s speech, the odds of keeping rates unchanged were at 88%.
Subsequently, news broke that U.S. regulators had dropped criminal charges against executives of Ripple, a blockchain firm. This development had an immediate impact on the price of XRP, which saw a 6% increase within 24 hours.
Bitcoin’s momentum was further enhanced by the increasing anticipation of the approval of a U.S. Bitcoin spot price exchange-traded fund (ETF). As a result, the cryptocurrency gained strength overnight, with its price reaching $29,689, just $200 away from the peak observed during a period of snap volatility on October 17.
Traders and analysts reacted to these developments with mixed opinions. Popular trader Jelle suggested that Bitcoin was slowly but surely filling the previous wick, expressing optimism for a potential $30,000 “tap.” However, fellow trader CrypNuevo warned that long positions outnumbered shorts and shared liquidation data, implying the possibility of a retracement during the U.S. trading session.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and exercise caution when making investment decisions.
In summary, Bitcoin’s price surged past $29,500, driven by events such as Powell’s speech and Ripple’s legal victory. The cryptocurrency gained momentum and approached two-month highs, while XRP benefited from the positive news surrounding Ripple. As market expectations shifted, the odds of maintaining current interest rates increased. Traders offered differing opinions on Bitcoin’s future trajectory, highlighting the need for caution in investment decisions.
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