Cryptocurrencies rose alongside traditional markets in response to comments delivered by Federal Reserve Chair Jerome Powell at The Economic Club in Washington before turning lower.
Bitcoin rose to a high of $23,320 around 1:00 pm EST only to slide back down to $23,070 fifteen minutes later, according to data from TradingView.
Ether also rose in response to the chair's comments on inflation, reaching a high of $1675 at 1:00 p.m EST, then also gave up gains.
“We expect 2023 to be a year of significant declines in inflation,” Powell said. “My guess is it will take certainly into not just this year but next year” to get to the Fed's 2% inflation target.
The statements made today reinforce sentiment shared by Powell on Feb. 1 when he announced that the Fed would raise interest rates by 25 basis points.
While a "disinflationary process has started," Powell stated at last Wednesday's press conference, "it's at an early stage."
Today Powell added that "we are seeing disinflation in the goods sector and we expect to see it in the housing sector."
In response to his comments, traditional markets initially responded positively only to give back gains.
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