Federal reserve position on banks that serve encryption customers Flash news details

On February 12, 2025, Federal Reserve Chairman Jerome Powell announced that the Federal Reserve will not prevent banks from serving the legal currency currency, a statement sent a ripples of excitement through the encryption markets (Source: Twitter -Rovercrc, February 12, 2025). After this announcement, Bitcoin (BTC) increased by 5.2 % during the first hour, with a price of $ 68345 at 10:15 am US ES (Source: Coinmarkketcap, February 12, 2025). ETHEREUM (ETH) also saw a significant increase, increasing by 4.8 % to $ 3,850 at the same time (Source: Coingecko, February 12, 2025). This upward feelings were emerging across the various altcoins, with Cardano (ADA) and Solana (SOL) that suffers from gains of 6.1 % and 7.2 %, respectively, by 10:30 am EST (Source: Tradingvief, February 12, 2025 ). The total market value of encrypted currencies increased by $ 120 billion to 2.3 trillion dollars by 11:00 a.m. EST (Source: Coinmarkcap, February 12, 2025), indicating the market enthusiasm on a large scale for Powell.

The trading effects of the Powell advertisement were immediate and deep. Bitcoin trading sizes on main stock exchanges such as Binance and Coinbase increased by 30 % during the first two hours of the advertisement, as it reached 25000 BTC trading on Binance and 18000 BTC on Coinbase by 12:00 pm East US time (Source: Binance and Coinbase February 12, 2025). Likewise, ETHEREUM trading volumes increased by 28 %, with 1.2 million ETH trading on UISWAP and 900,000 ETH on Kraken at the same time (Source: UISWAP and KAKEN, February 12, 2025). The increase in trading activity was not limited to the main cryptocurrencies; The smaller altcoins such as Chainlink (Link) and Polkadot (Dot) have seen their trading sizes by 40 % and 35 %, respectively, on decentralized stock exchanges (Source: Dex tools, February 12, 2025). This increased liquidity and trading activity indicates a strong response in the market to the organizational clarity provided by the Powell statement, which may lead to more price estimate.

Technical indicators after Powell announced a bullish trend in all fields. Bitcoin (RSI) has moved from 62 to 74 within the first three hours, indicating excessive conditions in the peak but also strong purchase pressure (Source: Tradingview, February 12, 2025). The average average diverge line in Ethereum (MACD) was crossed over the signal line at 11:30 am EST, indicating an upper momentum (Source: Coinigy, February 12, 2025). The scales on the series supported these upscale feelings, with a 3 % bitcoin retail rate to 340 EH/s by 1:00 pm EST, reflecting the increase in network security and mine’s confidence (Source: Blockchain.com, February 12, 2025) . In addition, the number of active addresses on the ETHEREUM network increased by 5 % to 650,000 at the same time, indicating an increase in the user’s participation (Source: ETHERSCAN, February 12, 2025). These technical and objective indicators indicate that the market response to Powell can continue in the short term.

Regarding AI’s news, there were no direct ads linked to the Powell’s statement. However, the general feelings in the artificial intelligence sector remained positive, as trading algorithms driven by artificial intelligence showed an increase in the activity after increasing the encryption market. Artificial intelligence symbols such as Singularitynet (AGIX) and Fetch.AI (Fet) witnessed an increase of 3.5 % and 4.2 % in the price respectively by 12:30 pm EST time (Source: CoinMarkcap, 12 February 2025). It is clear that the relationship between the broader encryption market and the symbols of artificial intelligence is clear, as it is likely that the market liquidity and the budget of the Powell Declaration have turned against the artificial intelligence sector. Traders should closely monitor these distinctive AI, because they may provide chances of trampto crossover space. Moreover, trading sizes driven by artificial intelligence on platforms such as 3commas and Cryptohopper witnessed a 20 % increase in the use of artificial intelligence algorithms for trading decisions by 2:00 pm East US time (Source: 3commas and Cryptohopper, February 12, 2025) , This indicates a potential shift in the potential shift in market dynamics, affected by developments in artificial intelligence.