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Reverse trend in top coins after Fed Press brief

The Fed chairman believes in raising the benchmark rate. However, the central bank is yet to determine whether to raise the benchmark rate or not.

According to CoinMarketCap statistics, the cryptomarket is currently in a bloodbath zone. Avalanche (AVAX) is one among the worst performers, with a downward trend of more than 10 percent. Solana (SOL) and Terra (LUNA) are down more than 8 percent while Dogecoin (DOGE) and Shiba Inu (SHIB) are both down 5 percent and 4 percent, respectively.

Bitcoin hit an intraday high of USD 38,946 on the Bitstamp market on Wednesday, according to U.Today. Bitcoin dropped 8.8 percent in intraday trade from its top on January 26. The development took place after the US Federal Reserve’s decision of not raising near-zero interest rates. The bulls were encouraged by the lack of shocks in the Fed’s much-anticipated speech.

Following a series of harsh statements made by Federal Reserve chairman Jerome Powell in his media briefing, bitcoin, along with the equity market, immediately reversed its movement trend. Powell informed that the central bank is yet to determine about raising the benchmark rate after its March meeting. However, it is possible according to him.

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Powell pointed towards sustained inflation to explain the central bank’s sudden policy move. He also stated that since asset prices are significantly inflated, the Fed will abandon its accommodative stance.

After the press briefing, the top cryptocurrencies like bitcoin and Ethereum have lost all of their Fed-driven gains.

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