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First Mover Asia: Bitcoin, Ether Bounce Back After Being Tested by Fed Chair Powell’s Comments

When Federal Reserve Chairman Jerome Powell stated that the economy is expanding faster than anticipated and that the Fed is “prepared to increase the pace of rate rises” in order to maintain price stability, Bitcoin and Ether returned to the red, although modestly.

The biggest digital asset in the world is starting the Asian session at $22,249, down 1.1% from the previous hour, while ether is trading at $1,568, down 0.4% from the previous day. According to AdvisorShares CEO Noah Hamman, “I think there will be an influence on everything that is priced or traded against the U.S. dollar,” during a recent episode of CoinDesk TV’s All About Bitcoin. The Fed’s balance sheet decrease is the secondary worry. This drains a significant amount of market liquidity, which makes it harder for riskier assets to trade.

Conflux, a Chinese cryptocurrency, has increased by 9.1% during the past day. The cryptocurrency has increased 12.8% over the previous week, outpacing major Chinese story currencies like NEO and Filecoin. Even modestly, ether continues to fare better than bitcoin. In the past 48 hours, bitcoin has decreased by about 1%, while ether has decreased by 0.25%.

With the Shanghai [upgrade] and a lot of staking being liquid, there are major narrative and considerable structural tailwinds supporting Ethereum over the next 12 to 18 months, according to Quinn Thompson, the head of capital markets at Maple Finance, in an interview with CoinDesk TV.

While Ethereum and the mission-critical pieces of infrastructure might be enjoying their day, Thompson said some of the more “speculative” enterprises on the “longer tail of the spectrum” are likely to struggle.

“That’s sort of the issue now afflicting cryptocurrency. There isn’t actually an increase in activity that matches with an increase in income because new addresses and on-chain activities are declining, he added. “Most protocols and initiatives in the space are suffering a little bit of a squeeze on the funding side.” All this is aiding the consolidation narrative, he added, resulting to majors like bitcoin and Ether outperforming.

 

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