Bitcoin saw a significant uptick on Friday, climbing to nearly $84,000 after gaining over 6% within a 24-hour period. This surge in price followed a statement by Susan Collins, President of the Boston Federal Reserve, which reassured investors about the Fed’s readiness to address market instability if needed.
Federal Reserve’s Reassurance Boosts Market Confidence
Collins emphasized that the Federal Reserve is “absolutely prepared” to intervene should market disruptions arise. Despite her assertion that current conditions are stable and there are no immediate liquidity concerns, the markets took her comments as a positive indication of central bank support amid ongoing uncertainty in macroeconomic conditions.
Broader Market Impact
Bitcoin wasn’t the only asset to benefit from the renewed investor confidence:
- Ethereum, Solana, and XRP also posted notable gains
- The Nasdaq and S&P 500 indexes each rose nearly 2%
This positive movement reflects how both crypto and traditional markets respond favorably to signs that the Fed may adopt a more supportive stance.
Crypto’s Sensitivity to Fed Policy
Historically, cryptocurrencies have shown high sensitivity to Federal Reserve communications. When the Fed hints at increased liquidity support or a less aggressive monetary policy stance, digital assets tend to outperform, as seen in this latest rally.
For more details, visit the original article on CoinDesk.
