Fintech stocks and cryptos saw a decline in recent months. On Jan. 11, the prices started to go up. The rise followed Fed chair Jarome Powel's speech when he said that the US economy is healthy enough and there's a need for tighter monetary policy.
He added that the institution will end asset purchases in March and raise interest rates in the course of the year. Powel said that inflation may go higher, which is at a close to a 40-year high.
Shares of S&P, Galaxy Digital, Coinbase, and Robinhood rose. Prices of cryptocurrencies started to surge too. The bitcoin price rose by around 2.5% and currently trades at around $42.840. Ether increased by 4.7% and trades at around $3.200. The global crypto market cap currently stands at over $2 trillion.
Recent research by data provider Kaiko shows that Bitcoin's correlation with S&P 500, and Nasdaq hit the highest level since July 2020.