Bitcoin accelerates growth amid weak dollar
2023.02.02 02:25
Bitcoin accelerates growth amid weak dollar
By Tiffany Smith
Budrigannews.com – After United States Federal Reserve Chair Jerome Powell stated that inflation had begun to slow down in the world’s largest economy, the price of Bitcoin (BTC) broke through the $24,000 ceiling and the total market cap of cryptocurrencies increased by nearly 4%.
“We can now say, I think for the first time, that the disinflationary process has started […] we see it really in goods prices,” Powell said at a press briefing on February 1 for the Federal Open Market Committee, shortly after announcing a 25 basis point increase in interest rates.
The crypto markets, which had been trading sideways in the lead-up to Powell’s speech but saw their market cap increase by more than $40 billion in the hours following the announcement, appeared to have taken the rate hike and Powell’s remarks well.
The most recent data from Coinmarketcap indicate that the global crypto market cap has increased by 3.88 percent over the previous day to $1.09 trillion.
Meanwhile, according to Coinmarketcap, BTC crossed the $24,000 mark for the first time in 2023, reaching $24,161.27.
Having said that, Powell stated that they still anticipate that inflation in the services sector will continue to rise for some time and that they should be ready for “ongoing rate rises.”
“We believe that we have more persistent inflation in that [services] sector, which will take longer to reduce, and we must complete the task. That is why we are here.
Powell stated that the Federal Reserve’s efforts to bring inflation back to its target level of 2% would require “ongoing rate rises.”
The Fed Reserve raises interest rates by 0.25 percent. The eighth hike. The Federal Reserve didn’t say that its cycle of hikes was over. However, the Fed chair stated in his speech that he expects inflation to fall soon. The “disinflationary” phase accounts for 50% of inflation. The markets respond positively.
It is important to keep in mind that, in contrast to deflation, which occurs when the general price level of goods and services decreases, disinflation refers to a slower rate of increase.
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