The crypto market witnessed a seesaw on Tuesday after the Federal Reserve Chairman Jerome Powell answered macroeconomic questions related to the USA at the Economic Club of Washington. The Fed Chairman's remarks have elicited a favorable response from financial markets, as evidenced by the 0.65% rise in the S&P 500 Index. By contrast, the ever-volatile digital asset market saw a gain of 0. 66% with a market capitalization that reached the $1.08 trillion mark. However, hours after Powell's speech ended, most of the gains were eradicated in both markets.
Crypto Market Turns Green
At its peak during Powell's speech, the largest cryptocurrency market capitalizationBitcoin (BTC), initially rose to $23,311 from $22,960, while the altcoin supremo: Ethereum (ETH) price it went from $1,616 to $1,666.
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Minutes after the speech ended, the prices of major cryptocurrencies such as XRP, Solarium, dogecoin and Link of the chain, including Bitcoin and Ethereum, experienced a decline in price. However, of the top 150 coins by market value: Shiba Inu (SHIB)Fantom (FTM), Optimism (OPT), Earth (MOON) and Quant (QNT) were hit the hardest, with some falling more than 3% in the past hour.
The stock market also experienced a downward trend, after a brief rally that occurred when Federal Reserve President Jerome Powell declared that inflation was falling. The S&P 500 lost 0.3%, while the Nasdaq Composite suffered a loss of 0.2%. In addition, the Dow Jones Industrial Average also saw a drop of around 202 points after rising more than 270 points at one point.
Powell bullish outlook
David Rubenstein, co-founder of the Carlyle Group, wasted no time in being interviewed. He began by asking whether the Federal Reserve's decision to raise its benchmark fed funds rate by just 25 basis points might have been changed as a result of last Friday's jobs report, which showed an increase of 517,000 jobs. Powell stated that there was a low probability that the news would have resulted in a change.
Speaking about the current state of affairs in the country, Powell stated that the US economy is clearly slowing down from the historically high growth rates of 2021, which reflected the reopening of the economy after the pandemic recession. While recent economic data has been mixed and mostly positive, Powell believes the economy shows strong underlying momentum. According to the Fed chair, the labor market is particularly strong, with 517,000 new jobs added for the month of January.
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