Major cryptocurrencies traded in the green on Wednesday night with the global cryptocurrency market cap up 1.46% at $1.35 trillion.
What Happened: Bitcoin (CRYPTO: BTC) traded 1.41% higher at $32,959.42 over 24 hours at press time. The apex cryptocurrency was down 1.08% for the week.
Over 24 hours, Ethereum (CRYPTO: ETH) was up 4.36% at $1,993.74, marginally below the $2,000 psychologically important level. For the week, ETH traded 12.59% lower at press time.
Dogecoin (CRYPTO: DOGE) traded 2.09% higher at $0.20 at press time over 24 hours. The cryptocurrency traded 8.28% lower over a seven-day trailing basis.
DOGE gained 0.18% against BTC over 24 hours and fell 2.48% against ETH in the same time frame.
Axie Infinity’s (CRYPTO: AXS) rise continued unabated; the cryptocurrency of the gaming and non-fungible token project shot up 19.09% over 24 hours to $24.36 to emerge as the top gainer on Wednesday. For the week, AXS has soared 78.44%.
See Also: How To Buy Axie Infinity (AXS)
AXS traded 18.10% and 14.97% higher against BTC and ETH, respectively.
Other notable gainers of Wednesday were Enjin Coin (CRYPTO: ENJ), Decentraland (CRYPTO: MANA), and Solana (CRYPTO: SOL).
On a 24-hour basis, ENJ rose 12.63% to $1.33, MANA was up 12.54% to $0.724 and SOL traded 9.6% higher at $31.35.
Why It Matters: Jerome Powell, the chair of the Federal Reserve, said on Wednesday that the U.S. central bank was unlikely to taper down monetary stimulus in the short term as he does not see “substantial further progress” on economic recovery.
Powell’s comments buttressed Bitcoin trading on Wednesday along with giving a boost to more traditional assets like mega-cap stocks, with S&P 500 closing marginally in the green.
“What helped cryptocurrencies turn positive was the broad-based rally on Wall Street,” said Oanda’s senior market strategist Edward Moya, reported CoinDesk.
Analysts are exploring metrics like the spent output profit ratio or SOPR, which is derived by calculating the average price at which bitcoin was sold by the average purchase price. A value of 1 indicates owners of the asset are in profit and below 1 implies sellers sold at a loss.
“In a bull market, as we expect we are in today, a SOPR below 1 can indicate a local bottom as sellers are reluctant to sell at a loss,” said David Grider, head of digital assets at FundStrat, as per a CoinDesk report.
Additionally, Powell touched on stablecoins, a digital dollar, and central bank digital currencies at his half-yearly testimony before the House Financial Services Committee.
“Stablecoins certainly have some advantages in terms of faster payment systems and have some attributes of CBDCs, but there are some risks with stablecoins right now,” the Fed chair said.