The broader crypto market has rallied an additional 3% over the last 24 hours taking the overall market cap above $1.4 trillion. This market strength continues to prevail despite Fed Chairman Jerome Powell appraising that they won’t hesitate to raise interest rates further if the inflation doesn’t sink below their desired target of 2%.
Fed Chair Issues Warning
Federal Reserve Chair Jerome Powell expressed optimism about the easing inflation rate but admitted uncertainty regarding the effectiveness of recent policy measures. Powell acknowledged the ongoing challenge against inflation during remarks at an International Monetary Fund event in Washington, D.C., just over a week after the central bank’s decision to maintain benchmark rates. He said:
“The Federal Open Market Committee is committed to achieving a stance of monetary policy that is sufficiently restrictive to bring inflation down to 2 percent over time; we are not confident that we have achieved such a stance”.
Powell acknowledged that inflation currently exceeds the desired levels set by the Fed and characterized the current policy as “significantly restrictive.” Despite inflation remaining elevated compared to the central bank’s longstanding target, it has moderated from its earlier peaks in the first half of 2022.
The Federal Reserve implemented an assertive tightening strategy with 11 consecutive rate hikes, marking the most aggressive policy adjustment since the early 1980s and bringing the benchmark rate from nearly zero to a targeted range of 5.25%-5.5%.
The current stand by the Fed negates analysts’ expectations that the rate hike could be coming as soon as March 2024.
Altcoin Market Rally
After Bitcoin’s strong push to $37,000 earlier on Wednesday, altcoins also joined the mega rally and continue to hold strong. The Ethereum price has registered strong 10% price surge amid BlackRock filing for a spot Ethereum ETF. With the recent price surge, ETH is eyeing the next target of $2,500.
In addition to Ethereum, various altcoins have surged in the recent market rally. Chainlink, a provider of oracle services, has experienced a notable 100% increase in its value over the past three weeks. Meanwhile, Polygon, Ethereum’s layer-2 platform, is undergoing significant upswing, with its native token MATIC aiming for the $1 mark. Along with ETH, the Solana price has also shot up 7% moving closer to $50.