RIYADH: Bitcoin, the leading cryptocurrency internationally, traded higher on Tuesday, rising 5.27 percent to $43,025.36 as of 8:00 a.m. Riyadh time.
Ether, the second most traded cryptocurrency, was priced at $3,029.08, up by 6.44 percent, according to data from Coindesk.
Powell hints tougher monetary policy, dollar strengthens
After comments by U.S. Federal Reserve Chair Jerome Powell that opened the door for the central bank to take a more aggressive monetary policy path, the dollar strengthened against a basket of major currencies on Monday.
Early in the day, the currency fluctuated between gains and losses before slipping slightly after comments by Atlanta Federal Reserve Bank President Raphael Bostic.
Because of his concerns over the impact of the Russia-Ukraine conflict on the U.S. economy, he took a more dovish stance where he sees six rate hikes this year and two in 2023,
Nonetheless, the dollar strengthened after Powell said it is necessary for the central bank to act “expeditiously” to combat inflation, and will if needed, use higher interest rates than usual.
Crypto sector posts outflows for the second consecutive week
On Monday, a report from digital asset manager CoinShares showed net outflows from cryptocurrency investment products and funds for the second straight week, demonstrating concerns on regulation and the impact of the Russian-Ukrainian conflict.
Crypto asset outflows came amid ongoing regulatory efforts. In a recent executive order, President Joe Biden asked the government to assess the risks and benefits of creating a digital dollar from a central bank, as well as other crypto-related issues.
The largest outflow was $33 million from Bitcoin, the report showed, following an outflow of 70 million the week before.