Bitcoin and Ethereum remain stable ahead of Fed Chair Powell’s testimony
Bitcoin and Ethereum remained stable on Tuesday, as investors awaited the testimony of Fed Chair Powell in front of the Senate Banking Committee. The two largest cryptocurrencies by market capitalization traded close to support points, with Bitcoin trading above a floor at $22,000 and Ethereum hovering around $600.
Many investors are looking to Powell’s testimony for guidance on the Federal Reserve’s upcoming meeting and how aggressive they may be in their monetary policy. Bitcoin fell to a low of $22,356.62 earlier in the day, less than 24 hours after trading at a high of $22,584.29.
Despite the uncertainty in the market, some analysts remain bullish on Bitcoin’s long-term prospects. “Bitcoin has been consolidating for a while now, but we believe that it is only a matter of time before it breaks out to new highs,” said a spokesperson for a leading cryptocurrency exchange.
Meanwhile, Ethereum has been gaining traction in the decentralized finance (DeFi) space, with the total value locked in DeFi protocols reaching an all-time high of $14 billion. Ethereum’s smart contract capabilities have made it a popular choice for DeFi developers, and many believe that the platform will continue to grow in popularity in the coming years.
Overall, the cryptocurrency market remains volatile, with investors closely watching the movements of Bitcoin and other major cryptocurrencies. As the world continues to grapple with the COVID-19 pandemic and its economic fallout, many are turning to cryptocurrencies as a hedge against inflation and economic uncertainty.
