Bitcoin experienced a notable surge in price following comments from Boston Federal Reserve President Susan Collins, who reassured markets that the Fed is “absolutely prepared” to step in if financial instability arises. Her remarks came during a recent interview with the Financial Times.
These statements appeared to calm investor concerns, prompting a rally across both digital assets and traditional equities. Bitcoin briefly surpassed the $84,000 mark—a 6% increase within 24 hours—before leveling off at approximately $84,924 in the afternoon.
Cryptocurrency Market Reaction
- Ethereum climbed nearly 5%, reaching around $1,642.
- Solana advanced by 8%.
- Bitcoin Cash increased more than 11%.
- Other altcoins such as XRP, Cardano, and Dogecoin rose between 3% and 5%.
Collins noted that financial markets are currently functioning in an orderly manner and that the Fed has not observed any liquidity strains. However, her confirmation of the Fed’s readiness to act reinforced a risk-on sentiment, fueling a broader market rally.
Stock Market Response
U.S. equities mirrored the crypto surge, with both the Nasdaq and S&P 500 indexes gaining close to 2% on the session. This underscores the continued correlation between digital assets and traditional markets during volatile macroeconomic periods.
Investor Outlook
- Participants are now closely monitoring potential interest rate adjustments.
- Expectations are mounting for additional liquidity measures from policymakers.
- Sentiment reflects heightened sensitivity to central bank policy direction.
This latest price action reinforces that the cryptocurrency sector remains highly responsive to macroeconomic cues and policy decisions from central banking authorities like the Federal Reserve.
For more details, visit the original article on CoinDesk.
