Cryptocurrency Market Turns Green After Fed Chief’s Statements

The cryptocurrency ecosystem is showing signs of recovery after the 48-hour correction on September 23. Stock and crypto investors were concerned about the possible bankruptcy of Chinese real estate company Evergrande, with many fearing that this bankruptcy could lead to a global pullback in financial markets.

These concerns were temporarily alleviated when Evergrande reached an agreement with the bondholders and technically avoided defaulting on its obligations. As a result, a rally was seen in the crypto money markets, bringing Bitcoin (BTC) to $ 44,000.

According to data from Cointelegraph Markets Pro and TradingView, Bitcoin is up more than 11 percent after falling as low as $ 39,572 on September 21. The largest cryptocurrency is trading at $ 44,160 at time of translation.

BTC / USDT 4-hour chart. Source: TradingView

The jump in the price of Bitcoin came after the statement of the chairman of the US Federal Reserve, Jerome Powell. Powell announced that the Fed plans to continue its monthly bond purchases at the current level for the foreseeable future. The Fed chairman also noted that interest rates could skyrocket in 2022.

Aside from the Evergrande events, the latest comments from Gary Gensler, chairman of the US Securities and Exchange Commission (SEC), were also putting intense pressure on the markets. Gensler reiterated that he will lead the SEC to curb cryptocurrencies and the growing market for stablecoins.

The market, which fell on these comments, rose again following the comments of the Fed, and Bitcoin rose to the support of $ 44 thousand, and Ether (ETH) rose above $ 3,100.

The impact of comments from Evergrande and regulators on the market can also be seen in the Crypto Fear & Ambition Index. The index, which was in the “extreme ambition” in early August and in the neutral zone a week ago, is currently in the “extreme fear” zone.

It may interest you: What is the Crypto Fear & Ambition Index?

Index of ambition and fear of cryptocurrencies. Source: Alternative

The altcoin market has also turned green

The recovery seen in the cryptocurrency market with the new day has made most of the top 200 cryptocurrencies bullish.

Daily performance of the cryptocurrency market. Source: Coin360

The Ethereum Enzyme (MLN) -based DeFi protocol has been the winner of the last 24 hours. MLN jumped 32 percent to $ 160.30. COTI and was up 21 percent to $ 0.385.

Other notable cryptocurrencies were Arweave (AR), which was up 22%, and Perpetual Protocol (PERP), which gained 21%.

The total value of the crypto money market was $ 1.947 trillion, while Bitcoin’s dominance was measured at 42.1 percent.

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