Clarity from Fed Chair Powell increases investor demand for riskier assets.
Riskier assets suffered last week as a result of the uncertainty about the Federal Reserve’s interest rate trajectory, which came after the publication of the US Jobs Report and ISM Non-Manufacturing PMI. Although less aggressive than anticipated, Fed Chair Powell’s statement on Tuesday gave the market a much-needed sense of direction.
Market Response to Powell’s Speech in Cryptocurrency
Going into Tuesday’s session, the cryptocurrency market was in a downturn as both Bitcoin and XRP had recently suffered losses. Powell’s speech increased demand for riskier assets, though, and XRP returned to the $0.40 handle as a result. Both the NASDAQ Index and S&P 500 showed an upward trend, finishing the day up 1.99% and 1.29%, respectively.
Continued Effects of the SEC v. Ripple Case on XRP
An adverse effect on the price of XRP might result from a court decision in the plaintiffs’ favor in the SEC v. Ripple lawsuit. Investors are urged to follow developments in the case as well as other important figures in the cryptocurrency sector including FTX, Genesis, and Silvergate Bank. Today’s market isn’t likely to be much impacted by US economic data, but aggressive FOMC member rhetoric may be unfavorable. Williams, Waller, and Barr, members of the FOMC, are slated to speak today.
The NASDAQ Index is Likely to Influence the Afternoon Session
The NASDAQ Index is anticipated to have a big impact on how the afternoon session plays out as FOMC member comments is the main topic of discussion.