• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news
Crypto.com Logo
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play GamesTry
  • Bet & WinTry
No Result
View All Result
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play GamesTry
  • Bet & WinTry
No Result
View All Result
NewsBTC
No Result
View All Result
FED Cryptocurrencies
Nexo Logo

Bitcoin Hopes to Retest Record Highs After Powell’s Testimony; Here’s Why

Yashu Gola by Yashu Gola
1 year ago
in Bitcoin
Reading Time: 2 mins read
Advertisement

Bitcoin prices jumped back Wednesday after logging the previous two sessions in negative zones as a flurry of optimistic events, including Jerome Powell’s dovish testimony, reignited the buying sentiment across the entire cryptocurrency market.

The benchmark crypto roared above $50,000 after rising by more than 14 percent from its week-to-date low. Around 0900 UTC, it touched $51,415, followed by a modest downside correction to signal its neutral sentiment for the remaining of the European session.

Bitcoin, cryptocurrency, BTCUSD, BTCUSDT
Bitcoin regains its bullish momentum in an intraday buy-out. Source: BTCUSD on TradingView.com

Bitcoin’s retracement…

…coincided with Mr. Powell’s testimony before the Senate Banking Committee on Tuesday. The Federal Reserve chairman touched upon topics that earlier provided tailwinds to the cryptocurrency’s bullish bias. That included the US central bank’s intentions to continue its bond-buying program and keep its interest rates near zero.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

Mr. Powell reiterated that they would need to continue their dovish policies unless the US economy achieves maximum employment and an inflation rate above 2 percent. His statements sent the US Treasury yields into an intraday bias conflict, signaling that investors might return to buying long-dated bonds to seek safety from the market’s uncertainty.

Yields move inversely to the bond prices. When they rise, it shows investors’ increasing appetite for riskier assets for they sell-off Treasury notes. Similarly, a drop in yields indicates a shift towards safe-havens. That also means that investors would choose riskier assets as their safe-havens in the absence of any alternatives. Therefore, even volatile assets like Bitcoin tend to benefit from falling bond yields.

US government bonds, US Treasury yields, bond yields, US10Y
US 10-year government yields steady ahead of Powell’s testimony. Source: US10Y on TradingView.com

Other catalysts provided tailwinds to Bitcoin’s price rally. Firstly, iFinex, the parent company of stablecoin Tether and cryptocurrency exchange BitFinex, agreed to pay an $18.5 million penalty after New York’s attorney general accused the firm of covering financial losses from clients.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Get 110 USDT Futures Bonus for FREE!

Tether’s USDT token facilitates more than 85 percent of transactions in the cryptocurrency market, for traders trust the token for its 1:1 US dollar peg. Concerns that Tether’s USDT supply did not have actual US dollars backing it remained a core concern among traders. Many believed that its removal from the cryptocurrency space would lead to huge declines in the Bitcoin market.

Second…

…payment service giant Square revealed in its filings with the US Securities and Exchange Commission (SEC) that it bought $700 million worth of bitcoins at an average price of $51,236 per token. That reiterated the narrative of Bitcoin’s boom among corporates as they seek a hedge against a depressed US dollar and lower real rates.

The sum of all fundamentals raised hopes that Bitcoin would reclaim its record peak level above $58,000 in the coming sessions. More optimism comes after the recent correction liquidated overleveraged long positions in Bitcoin’s derivatives market.

“The funding rates have returned to neutral territory, and the market seems healthier,” Arcane Research stated in its weekly report.

Mr. Powell is scheduled to speak before the Senators on Wednesday at 10 am ET. His overview of the rising bond yields expects to provide analysts projections on the riskier and safe-haven markets.

Tags: bitcoinbtcusdBTCUSDTcryptocurrency
Tweet123Share196ShareSend
Win up to $1,000,000 in One Spin at CryptoSlots
Yashu Gola

Yashu Gola

Yashu Gola is a Mumbai-based finance journalist. He is profoundly active in the bitcoin space since 2014 – and has contributed to several cryptocurrency media outlets, including NewsBTC, FxDailyReport, Bitcoinist, and CCN. Academically, Yashu holds a bachelor's in information technology, with majors in data structures and C++ programming language. He has also won the 'Atulya Award' for his efforts towards raising $100,000 for an India-based farming project.

Related Posts

bitcoin

Why Bitcoin Could Return To $28,000, But By The End Of 2022

30 mins ago
$15k Possible Bottom For Bitcoin? “Delta Cap” Says So

$15k Possible Bottom For Bitcoin? “Delta Cap” Says So

4 hours ago
bitcoin bear

New Bitcoin Record Paints Incredibly Bearish Picture As BTC Struggles At $19,000

5 hours ago
Bitcoin

Why Bitcoin Could Collapse Another 50%, Says Michael “Big Short” Burry

6 hours ago
Crypto Market Loses $60 Billion As Bitcoin Dips Below $20,000

Crypto Market Loses $60 Billion As Bitcoin Dips Below $20,000

6 hours ago
Bitcoin

Bitcoin Sees Worst Quarter In 11 Years

7 hours ago

Premium Partners

Top Brokers

PrimeXBT

PrimeXBT

Review · Visit

Top Casinos

BitStarz

BitStarz

Review · Visit
7BitCasino

7BitCasino

Review · Visit
BC.Game

BC.Game

Review · Visit
Punt Casino

Punt Casino

Review · Visit
mBit

mBit

Review · Visit
CryptoGames

CryptoGames

Review · Visit
Bspin

Bspin

Review · Visit

Sportsbooks

1xBit

1xBit

Review · Visit
BC.Game

BC.Game

Review · Visit

Crypto To Add The Best Gains To Your Portfolio For Bull Market: Gnox (GNOX), Cronos (CRO) And NEAR Protocol (NEAR)

July 1, 2022

U Promise Me: The Digital Promise Platform

July 1, 2022

XT.com Lists Land of Fantasy (LOF) With USDT Trading Pair

July 1, 2022

LYOTRADE Launches Crypto Loans—Get USDT and Win Against Volatility

July 1, 2022

Torches Genesis NFT Launching, Win Torchlight NFT to Unlock IDO Allocation

June 30, 2022

ABOUT US

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

COMPANY

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

LINKS

Crypto Prices from Nomics

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

© 2021 NewsBTC. All Rights Reserved.

  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play Games
  • Bet & Win

© 2021 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.