Bitcoin, the leading cryptocurrency, has surged past the $29,500 mark on October 20, amidst a series of events that have significantly influenced its price trajectory. During the same period, XRP, another popular cryptocurrency, experienced a noteworthy 6% increase in value following a significant legal victory by Ripple, the company behind XRP.

This surge in Bitcoin’s price appears to be defying the expectations of a hawkish Federal Reserve, as concerns about a potential retracement are beginning to emerge. Market data from Cointelegraph Markets Pro and TradingView has been closely monitoring the BTC/USD pair as it inches closer to reaching two-month highs from the beginning of the week.

A key catalyst for this Bitcoin surge seems to be a recent speech by Jerome Powell, the Chair of the United States Federal Reserve, where he addressed the ongoing U.S. bond market turmoil. Analysts were initially expecting a “very dovish” tone from Powell, anticipating that he would take a more lenient stance on interest rate hikes. However, Powell surprised many with his highly conservative outlook, describing the current policy stance as restrictive and highlighting that tight monetary policy could have negative effects on economic activity and inflation.

Powell’s Caution Affects Rate Expectations

Powell acknowledged the potential issues associated with raising interest rates too aggressively, as it could lead to persistent inflation or harm the economy unnecessarily. This cautious approach had a significant impact on market expectations, with data from CME Group’s FedWatch Tool indicating a unanimous expectation that the Federal Open Market Committee (FOMC) would maintain current interest rates during its upcoming meeting on November 1, compared to an 88% probability before Powell’s speech.

In a surprising turn of events, U.S. regulators announced the dropping of criminal charges against executives of Ripple, a blockchain firm. This legal development had an immediate and positive effect on XRP’s price, causing it to surge by over 6% within 24 hours.

The cryptocurrency community has been closely monitoring Bitcoin’s price movements, particularly in anticipation of the approval of a U.S. Bitcoin spot price exchange-traded fund (ETF). At the time of writing, Bitcoin was trading near the day’s high, which was just $200 shy of the peak seen in a recent volatility wick on October 17.

Prominent traders have shared their insights on the current Bitcoin trend, with many expressing optimism about its future. The $28,600 price level is considered a crucial point, as it is now seen as the origin of the current price surge. Traders believe that if Bitcoin can maintain levels above $28,600, it is poised for a substantial upward movement.

In the ever-fluctuating landscape of the cryptocurrency market, Bitcoin enthusiasts and traders find themselves at a crossroads of anticipation and apprehension. The digital currency, often touted as a pioneer of the crypto realm, has been a subject of fervent discussions and speculations lately. Some traders, fueled by optimism, eagerly anticipate a potential surge that could propel Bitcoin’s value to the elusive $30,000 mark.

However, amidst the optimism, a palpable sense of caution lingers. Recent market events, particularly concerning liquidations, have cast a shadow of doubt over the market’s stability. This cautionary stance is not unwarranted; seasoned traders and investors understand the inherent volatility of cryptocurrencies, where fortunes can be made or lost in the blink of an eye.

Central to this cautious sentiment is the recognition of the pivotal role played by the U.S. trading session. As the world’s largest economy and a significant player in the global crypto market, developments during the U.S. trading hours often have a profound impact on Bitcoin’s price movements. Traders, therefore, find themselves glued to their screens, meticulously analyzing every fluctuation, every market order, and every piece of news that could potentially sway Bitcoin’s trajectory.