Bitcoin experienced a notable surge on Friday after comments from Susan Collins, President of the Boston Federal Reserve, suggested the central bank is willing to step in during times of market stress.
The leading cryptocurrency rose to nearly $84,000, reflecting a 6% increase within 24 hours. Broader cryptocurrency markets followed suit, with gains in digital assets such as ether, solana, avalanche, and ripple.
Federal Reserve Comments Fuel Market Rally
In an interview with the Financial Times, Collins emphasized that the Federal Reserve is “absolutely prepared” to step in to support financial stability, although she also noted that markets are presently functioning well without any clear signs of serious liquidity issues.
This reassurance from the Fed appears to have sent a wave of optimism across both crypto and traditional financial markets.
Broader Market Impact
- The S&P 500 index closed up nearly 2%.
- The Nasdaq saw a similar rise, echoing the crypto market’s optimism.
Investor Sentiment on Fed Readiness
Crypto investors closely monitor the Federal Reserve’s policy stance, especially in periods of macroeconomic uncertainty. While interest rates have stayed high, the suggestion that the Fed could take supportive measures if needed has improved sentiment among traders. This kind of policy flexibility is viewed as a safeguard for potential market instability.
For more details, you can read the full article on CoinDesk.
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