The crypto market gained along with traditional markets overnight in Asia as investors responded to updated guidance on Thursday from U.S. Federal Reserve officials claiming recessionary concerns are overblown.
See related article: Bitcoin, Ether recover as Fed guidance reduces policy uncertainty
Bitcoin gained 8% to trade above US$22,000 in the past 24 hours leading to press time for the first time since June 16, as the crypto market capitalization surpassed US$1 trillion, according to CoinGecko data.
Both the Dow Jones Industrial Average and the S&P 500 Index closed trading yesterday up more than 1% and the Nasdaq Composite Index closed 2.3% higher, ending four consecutive days of gains — the longest streak since March.
Fed Board of Governors member Christopher Waller backed another 75-basis point interest rate hike this month and a 50-basis point rise next month to combat inflation, in his address to the National Association for Business Economics on Thursday.
St. Louis Fed President James Bullard echoed Waller’s sentiments, but both officials downplayed recessionary fears, with Bullard saying there was a “good chance” of a soft economic landing.
Crypto and traditional markets have been hit in recent months with concerns of rising inflation, looming recession, uncertainty caused by the war in Ukraine, and a growing list of crypto firms lining up for bankruptcy.