Bitcoin, Ethereum, Dogecoin Trade Mixed As Fed's Jerome Powell Warns 'Inflation Is Still Too High': Analyst Predicts Crypto Apex 'Fighting' Towards $40K Year-End

Benzinga - by Mehab Qureshi, Benzinga Staff Writer.

Major cryptocurrencies were trading mixed on Thursday as Wall Street analyzed remarks from Federal Reserve Chair Jerome Powell.

What Happened: Powell acknowledged that inflation remains at elevated levels and indicated a need for lower economic growth to address this issue.

"Incoming data over recent months show ongoing progress toward both of our dual mandate goals —maximum employment and stable prices," Powell said.

Nevertheless, he noted, “Inflation is still too high.” He pointed out that while positive data in the past few months is promising, but " inflation is moving down sustainably toward our goal."

The New York Attorney General, Letitia James, has taken legal action against cryptocurrency companies including the Gemini Trust Company, Genesis Global Capital, and Digital Currency Group (DCG). The lawsuit claims that these companies have allegedly defrauded over 230,000 investors, including at least 29,000 individuals from New York, of more than $1 billion.

A report by JPMorgan said that the exact timing of spot bitcoin ETF approvals is uncertain. However, it is anticipated that they will happen within the next few months, potentially before January 10, 2024. “The timing of spot bitcoin ETF approvals remains unclear but should happen within months and most likely before Jan. 10, 2024, the final deadline of Ark Invest and 21Shares applications,” JPMorgan analysts wrote in a report on Wednesday. “This is the earliest among the various final deadlines faced by SEC across spot bitcoin ETF applications.”

This deadline coincides with the final deadline for applications submitted by Ark Invest and 21Shares, making it the earliest among the various final deadlines faced by the SEC for spot bitcoin ETF applications.

Interestingly, last week, the SEC allowed its appeal deadline to lapse in the Grayscale case. This case had previously been won by the asset manager in court, further hinting at the potential for forthcoming ETF approvals.

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Top Gainer (24 Hour)

The global crypto market cap currently stands at $1.09 trillion, reflecting an increase of 0.63% in the past 24 hours.

Stocks tumbled on Thursday after Wall Street parsed commentary from Powell while monitoring a key milestone for a closely followed Treasury bond yield.

The S&P 500 slipped 0.85% to 4,278, while the Nasdaq Composite dropped 0.96% lower at about 13,186. U.S. 10-year Treasury yield rose high of 4.996% on Thursday, inching closer to the 5% level that was last crossed in 2007.

See More: Best Cryptocurrency Scanners

Analyst Notes

Crypto analyst Michael Van de Poppe believes that Bitcoin is currently struggling to overcome the $28,800 barrier. "It slowly starts to feel the uptrend is coming. Breaking this level and we get more and more confirmation that the worst is in. $40,000 before end of year?"

Pseudonymous analyst Pentoshi has shared positive insights about the current state of BTC.

"BTC looking good so far. Key spot 29.3k on low-mid time frame. If we do end up rejecting there. I wouldn’t be surprised to see some sort of fake head and shoulders setup where the timeline calls for much lower just to get btfo again."

$BTC looking good so far

Key spot 29.3k on low-mid time frame

If we do end up rejecting there. I wouldn't be surprised to see some sort of fake head and shoulders setup where the timeline calls for much lower just to get btfo again https://t.co/12UUsbRRSq pic.twitter.com/bOqWgRU105

— Pentoshi