Bitcoin surged 2.99% to $57,453.86 after FED Chair Jerome Powell's speech, signaling positive market sentiment.

FED Chair Jerome Powell Addresses Senate on Monetary Policy

According to Coingape, Bitcoin has gained 2.99% in the past day and is now trading at $57,453.86. After suffering heavy losses due to liquidations last week, this is a huge victory for the coin.

The sale pressure was mostly caused by the US and German governments' actions over Mt.Gox, including repayment and offloads. Recent discussions about inflation in the US are said to be associated with the coin's new aspect.

In Tuesday's speech to the Senate Banking Committee, Federal Reserve Chair Jerome Powell included his semiannual report to Congress on monetary policy.

Prior to this address, lawmakers had asked for further proof that inflation is returning to the 2% objective. So, a few of them eagerly anticipated Powell's address, watching for clues as to how to begin easing.

Per CNBC, U.S. Federal Reserve Chairman Jerome Powell has thus far only stated that he and his colleagues "want to be more confident that inflation is moving sustainably down toward 2% before we start the process of reducing or loosening policy." On Wednesday, the House Financial Services Committee will continue to hear Powell's testimony.

Positive Market Reaction to Powell's Testimony

The Fed Chair's speech conveys a significant attitude of noncommittance to inflation and interest rates. It did, however, inspire optimism in the cryptocurrency market.

Not only did Bitcoin see rises of 2% to 13%, but other cryptocurrencies did as well. With the anticipated approval of spot Ethereum ETF trading by the Securities and Exchange Commission (SEC), which also contributed to the 3.45% increase in Ethereum's price, which is at $3,065.99, the cryptocurrency is surging. After a 3.53% increase in the previous 24 hours, Solana is now trading at $141.28.

In that order, PEPE(1.92%), DOGE(1.60%), TRON(3.28%), BONK(10.35%), and SHIB (2.02%). How much longer this unexpected upswing in digital currencies can last is still up in the air.

Similarly, the German government has yet to record any offload. It instead proceeded to amass further Bitcoin. At least for the time being, the market might be calm.

At the same time, Powell has made it plain that the US economy faces other risks in addition to high inflation. A detrimental effect on economic growth, he argues, could result from keeping interest rates excessively high for an extended period of time.