Why crypto market is up today

Key points:

Bitcoin touched $17,000 after Federal Reserve Chairman Jerome Powell delivered a dovish rather than hawkish speech on Wednesday.
The Dow jumped 737 points after Powell spoke, suggesting the market is waiting for such a dovish day.
Powell confirmed that December rate hikes are likely to slow down after aggressive rate hikes this year to curb inflation.
This development could see Bitcoin breach its $17,500 resistance level and head toward $18,300 on the next leg.
However, if it fails to break the $17,500 resistance next, the price of BTC could decline.

Bitcoin is still on the greener side this week as the price slowly recovered and touched the $17,000 level. BTC encountered resistance at $16,500 but made progress and is now trying to reclaim the spot from $17,500. The overall cryptocurrency market remained in the green on Thursday, delivering solid gains for investors who jumped in last week.

However, the sudden price surge did not inspire investor confidence as the market remained bearish. If it fails to break the $17,500 resistance next, the price of BTC could decline.

Here's Why Bitcoin and the Crypto Market Are Active Today

Bitcoin touched $17,000 after Federal Reserve Chairman Jerome Powell delivered a dovish rather than hawkish speech on Wednesday. Powell confirmed that December rate hikes are likely to slow down after aggressive rate hikes this year to curb inflation.

"Restoring price stability may require keeping (interest rates) at restrictive levels for some time," Powell said. "Despite some promising developments, we have a long way to go to restore price stability," the Fed chair added.

Powell's dovish stance changed the tone of his earlier speech when the Fed remained aggressive and hawkish.

Dow Jones Rises 737 Points.jpg

The speech was embraced by Wall Street investors and brought fresh positivity to the market. The Dow jumped 737 points after Powell spoke, suggesting the market is waiting for such a dovish day.

As stocks surged Wednesday, Bitcoin and the entire cryptocurrency market followed suit. Markets are expected to turn green this week on the back of a possible drop in interest rates.

This development could see Bitcoin breach its $17,500 resistance level and head toward $18,300 on the next leg.

At press time, bitcoin was trading at $17,121, up 1.5% in 24-hour trading. BTC is down 75.1% from its all-time high of $69,044 reached in November 2021.