The cryptocurrency market started today's trading session positively. While at first it seemed that the rise was not due to anything in particular, then a speech by Fed Chairman Jerome Powell offered a reason for the positivity. Attending a Bank of France session on digital currencies, Powell gave a short speech in which he addressed a number of issues relating to cryptocurrencies, stablecoins and blockchain.
The main points of the Fed's speech were the need to regulate DeFi and stablecoins which, according to Powell, could be exposed to serious risks. On the positive side, the official expressed support for cryptocurrencies, which are seen as responsible innovations.
According to CoinMarketCap, Solana (SOL) showed the best performance of the top 10 coins by market capitalization, with 5% growth. Bitcoin and Ethereum are not far behind, showing similar growth figures. Of those not in the top 10, Uniswap's UNI token and STEPN (GMT) showed the biggest growth, with values of 14%. Next are MKR from DAO Maker and NEO, which also showed double-digit growth figures.
Reasonable respite
Nevertheless, it seems that no matter how friendly the Fed has been to new digital financial instruments, the course to regulate any independent idea in the market will continue. Crypto winter, according to Powell, provides an excellent time to put the necessary regulations in place.
Today's shift in sentiment in both the crypto market and all financial markets in general is unlikely due to fundamental reasons. The markets are probably tired of falling, which is what is causing this "respite," a technical bounce.