Cryptocurrencies soared sharply after Fed Chair Jerome Powell’s Congressional testimony last night, as he acknowledged the Fed was working hard on crypto to keep pace with China’s plans to incept its own digital currency.
The Federal Reserve has a “lot of projects” underway, Powell responded to Congressman Bill Foster’s concerns about China’s plans to launch a government digital currency.
Powell’s remarks were interpreted by crypto traders that the Fed may consider creating a digital dollar to take advantage of the blockchain technology.
The Chairman also cited the risks stemming from the virtual currencies on the U.S. dollar, but hailed the implementation of Facebook Libra, describing it as a “quick progress in this area.”
On the macro level, the Bitcoin and altcoins are still taking advantage from the outbreak of the deadly Coronavirus and its potential impact on the global economy, as investors continue to treat digital currencies as safe haven assets.
Bitcoin Halvening Event
One of the key contributors to the Bitcoin’s latest rally is the its halvening event that mainly occurs every four years, where in May the collective rewards for miners will be cut to 6.25 bitcoins from the current 12 bitcoins. The halvening should boost the Bitcoin prices as it will reduce its supply.
Coinbase, a leading US-based encryption exchange company, believes the next halving process will bring Bitcoin closer to being digital gold.
In the same vein, Weiss Ratings, a U.S. investment data provider, has announced that it has upgraded Bitcoin currency to A- category due to the upcoming halvening event, which makes it an excellent investment option.
On BitStamp exchange, the Bitcoin climbed 5.33 percent to $10,303.8 after it touched a new 2020 peak at $10,495, which is the highest since September 2019.
Bitcoin has started an upside trend since December 18, when it fell to a low of $6,429.2, noting that it jumped more than 30 percent in January while has gained, so far, 10.5 percent in February.
Some of the top 10 altcoins, however, have witnessed sharper gains, with the Tezos (XTZ) leaping 23.86 percent to $3.24 and Ethereum rising 13.94 percent to $251.98, according to CoinMarketCap.
Ripple surged 5.67 percent to $0.2866. Bitcoin Cash and Bitcoin SV augmented 4.97 percent and 3.60 percent respectively.
The total market capitalization
has been on the rise since January 3 as it soared from $186.7 billion to $299.5
today, while the 24-hour volume reached $157.9 billion.