Bitcoin, ether pop as traders cheer Powell's disinflation comments

"The disinflation process has started," Federal Reserve Chair Jerome Powell acknowledged in his post-monetary policy decision presser on Wednesday, while warning of further interest-rate increases ahead. Bitcoin ( BTC-USD ) and ethereum ( ETH-USD ) each gapped up following his remarks. Both tokens initially sold off, though, after the U.S. central bank lifted its benchmark rate by the standard 25-basis-point increment to 4.50%-4.75%, as expected, representing a downshift from the 50-bp hike in the December gathering following four back-to-back 75-bp increases. While the pace of rate increases are slowing, the Fed still sees more room for further hikes with inflation, albeit moderating, still hovering above its objective. Bitcoin ( BTC-USD ) changed hands at $23.44K as of 3:30 p.m. ET, rising 1.5% so far in the session, and ether ( ETH-USD ) climbed 2.6% to $1.62K. The currently bullish price action coincided with risk-on sentiment towards the stock market, with the Dow Jones up 0.1% , S&P 500 +1.0% and Nasdaq +1.9% . Crypto-related stocks also traded mostly higher, with Core Scientific ( OTCPK:CORZQ ) +23.4% , Silvergate Capital ( SI ) +11.5% , Bitfarms ( BITF ) +11% and Coinbase Global ( COIN ) among the some of the biggest gainers. The Fed chief said he doesn't expect rates to be cut in 2023, as "we're going to be cautious about declaring victory" on the battle against persistent inflation. "Although inflation has moderated recently, it still remains too high," signaling the rate-setting Federal Open Market Committee would be willing to move rates higher than its December projections if warranted by various data. See why Seeking Alpha contributor The Digital Trend said last week it remains skeptical of bitcoin's ( BTC-USD ) year-to-date rally.