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Bitcoin edged above $23,000 after Federal Reserve Chair Jerome Powell, speaking at an economics forum, said that inflation was lowering.

The world’s biggest cryptocurrency climbed 1% to $23,236.80 while Ethereum rose 1.3% to $1,667.63. Bitcoin had been struggling to break back through the $23,000 resistance level after dipping below that mark over the weekend.

Speaking at the Economic Club of Washington, DC, Powell said that although the process of reducing inflation has started, there was still a long way to go, adding, “We expect 2023 to be a year of significant declines in inflation.” He further cautioned that it would take the remainder of 2023 and much of the following year to get inflation back down to the Fed’s target of 2%.

Treasury yields declined during Powell’s speech, with the 10-year note yield sliding one basis point and the two-year note yield shedding five basis points. The US dollar index dipped as well. Yields and the dollar index move in opposite direction to crypto.

More than $1.3 trillion has been slashed from the cryptocurrency market in the last year. After climbing about 40% since the start of 2023, Bitcoin has encountered a speed bump in the past week as investors have started to doubt the staying power of the rally and are withdrawing their investments in crypto in preparation for further macro-driven volatility this year.