Jerome Powell, the Federal Reserve Chair, gave a speech in which he said that December would likely bring smaller interest rate hikes. This caused a jump in the crypto market. Ethereum, the second largest digital asset, rose by 6%.
2. The central bank has this year upped interest rates 0.75 percentage points four times. This is in order to get inflation—currently at a 40-year high in the U.S.—under control. It is expected that the Fed will raise interest rates by 0.50 percentage points next month.
3. The crypto market has closely followed U.S. equities this year because investors largely consider them risk assets. With the Federal Reserve’s aggressive monetary policy, it has been a better bet to avoid risk and instead go to safe havens, like the dollar.
