Bitcoin and Cryptocurrency Market Update

The digital currency market has experienced significant declines after strong comments from the US Federal Reserve Chair regarding a higher-than-expected interest rate hike. During a hearing on the "Semiannual Monetary Policy Report to Congress," the Fed Chair explained the balance between raising interest rates and the country's economic health. Prior to the hearing, there was a massive influx of stablecoins into the market alongside a huge increase in open interest in cryptocurrency futures.

Fed Chair Jerome Powell stated that interest rates would be at a higher level than previously expected by Fed members. Currently, markets are pricing in a 50-point increase instead of the previously expected 25-point increase at the next meeting in March.

In the hours leading up to the Fed Chair's testimony, cryptocurrency market sentiment was largely stable, with traders expecting volatility after the hearing. Earlier, investors eagerly anticipated Powell's testimony to the Senate Committee for a hint on interest rates. After Powell hinted in February 2023 about the beginning of the inflation-ending process, markets rebounded. However, the Fed Chair later cautioned that the central bank's battle against inflation was not yet over.
After Paul's warning, the price of Bitcoin fell by over $400, dropping to below $22,000, its lowest level in three weeks. However, it has since risen again above $22,000 to record levels of $22,200, a decrease of 1.3%.

The total market value of the digital currency market decreased to $1.02 trillion, down by over $40 billion.

The price of Ethereum fell by 1% today to reach $1,558.07. The price of Binance Coin also fell by 0.5% to $287.82.

The price of Cardano fell by 2% to reach $0.3276.

The price of Dogecoin (DOGE) fell to $0.0737, a decrease of 1.3%.