Bitcoin's 'bear market rally continues' after BTC price soars to $23.4,000

Fed rate hike, Jerome Powell comments serve to support risk assets as analyst says worst of the bank's "hawkish" phase has already passed.

Market Update

Bitcoin (BTC) consolidated higher on July 28 after changes in US monetary policy fueled optimism about risky assets.

BTC/USD 1-Hour Candle Chart ( Bitstamp). Source: TradingView

Fed Rise Instills New Crypto Optimism

Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD hit highs of $23,452 on Bitstamp overnight.

The pair had reacted strongly to the latest Federal Reserve rate hike, although it was in line with market expectations. Subsequent comments from Fed Chairman Jerome Powell added momentum to the breakout.

"I think the reason this gives relief to the equity market is that the Fed recognizes that there may be an impact on growth, on the economy, depending on its policy," Gargi Chaudhuri, head of from asset management giant BlackRock. iShares Investment Strategy Americas, told CNBC:

"They recognize that there are two sides to this: there is a trade-off between growth and fighting inflation. Recognition is something we heard today that we didn't have. not heard before."

Crypto commentators had previously predicted that the Fed would end up