Bitcoin fell and then bounced after Federal Reserve Chairman Kevin Warsh made his first big speech as U.S. central banks’ head. He said that the U.S. “more work to do” To combat inflation
The top cryptocurrency in the world was recently trading After dropping to $78,630, the price quickly rose back up to $79474.
Bitcoin is usually a good performer in an environment of low interest rates, however the Federal Reserve was reluctant to decrease borrowing costs because the inflation rate in the biggest economy has remained high.
“But on the price-stability side of our mandate, the numbers are more concerning,” Warsh said After talking about the employment.
Then he added: “We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed. Otherwise, we have work to do.”
Bitcoins have dropped when Federal Reserve officials said that they thought inflation was high. This means there is less likelihood of the Fed cutting rates. Following Warsh’s speech, traders priced in a 50% probability of a September rate hike.
But Bitcoin has appeared to — at least for now — shrug off the speech.
Bitcoins surged last week, after U.S. Treasury Sec. Scott Bessent announced that the Department would double its size for long-dated bonds buybacks.
News of the news sent yields lower and the dollar down while assets that don’t pay interest like gold and bitcoin jumped.
The coin also benefited from positive regulatory news: Donald Trump, last week said It was announced that the crypto Clarity Act, which had been long awaited, has now become law. “very, very powerful” The piece of legislation and the urge to pass it.
The proposed law will establish a framework for distinguishing between digital assets that are securities, commodities or payment stablecoins — legislation that the crypto industry has long called for.
In Jackson Hole in Wyoming, on Friday the Federal Reserve Bank of Kansas City hosts its annual meeting, which brings together policymakers, Federal Reserve officials and academics to discuss central banking issues. “Financial Innovation: Implications for Payments and Policy.”
This year’s event, according to the Federal Reserve Bank of Kansas City Website, will take place on touch on What is the best way to learn about? “recent years have seen a dramatic increase in innovation in financial intermediation and payments,” Included are new technologies, such as “cryptocurrencies and stablecoins.”
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Source: bitcoinmagazine.com
