Bitcoin is the first successful internet money based on peer-to-peer technology; whereby no central bank or authority is involved in the transaction and production of the Bitcoin currency. It was created by an anonymous individual/group under the name, Satoshi Nakamoto. The source code is available publicly as an open source project, anybody can look at it and be part of the developmental process.
Cryptocurrencies were volatile amid comments from Jerome Powell, who warned that the Fed’s battle against inflation is not over yet.
- Federal Reserve Chairman Jerome Powell spoke about inflation.
- He warned that the Fed’s efforts to curb inflation will bring “pain.”
- Bitcoin fell after the statements and the rest of the crypto market an area or arena, online or offline, in which commercial dealings are conducted. faltered.
The cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. market was highly volatile on Friday after an expected speech by US Federal Reserve (Fed) Chairman Jerome Powell.
Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. rose above USD $21,000 shortly before the speech, trading near USD $21,800, and major cryptocurrencies showed similar upward reactions. The trend reversed untimely during Powell’s speech, who hinted at more rate hikes and anticipated tough times ahead for the US economy.
During the annual policy event in Jackson Hole, Wyoming, the chairman reiterated the Fed’s commitment to curbing inflation, which is still near its highest level in more than four decades. The annual U.S. inflation rate is at its highest level in more than four decades. eased slightly in July, reaching 8.5%. after hitting a more than 40-year high of 9.1% in June.
Powell advanced along these lines that he expects the central bank to continue to push for an aggressive approach to raising interest rates, which, he warned, could lead to more “ dolor “on the economy. Over the course of 2022, the Fed has made a total of four consecutive increases of interest rates by a total of 2.25 percentage points, as recalled by the CNBC .
However, Powell does not consider this to be an “ place to stop or take a break “especially with inflation moving well above the Fed’s long-term target of 2%. The president noted, as reported by CNBC :
While higher interest rates, slower growth and softer labor market conditions will reduce inflation, they will also bring some pain to households and businesses. These are the unfortunate costs of reducing inflation. But failure to restore price stability would mean far greater pain.
“ We are deliberately moving our policy stance to a level that will be restrictive enough to bring inflation a general increase in prices and fall in the purchasing value of money. back to 2%. “said Powell, who also affirmed that the FED “ will use our tools with force “to attack inflation, according to the news outlet.
More pain for cryptocurrencies?
Digital currencies weren’t the only ones to react adversely to Powell’s comments. According to CNBC stock market shares also posted losses briefly after the speech began, with the Dow Jones Industrial Average down nearly 200 points. However, the market then stabilized.
By the time of editing, Bitcoin is quoted at around USD $20,905, down 3.4% in the last 24 hours.Ether the form of payment used in the operation of the distribution application platform, Ethereum. (ETH), the second largest cryptocurrency, extends slightly higher losses of 5.7% in the last 24 hours and trades below the USD $1,700 barrier. The rest of the market is also dominated by red numbers.
The cryptocurrency market has severely pulled back this 2022 after record highs in November and amid the Fed’s aggressive policy to control inflation.
Some experts, including the research analyst fromFidelity Digital digital technologies are these electronic tools that have the ability to generate, store or even process data. AssetsJack Neureuter, seem to agree that policy is likely to remain a drag on cryptoassets as well as all short-term risk assets. Neureuter, however, is optimistic that an eventual easing of rate hikes in the face of slowing inflation could bring some respite to cryptocurrency markets. The mediaThe Block a file containing information on transactions completed during a given time period. Blocks are the constituent parts of a blockchain. lo citó:
“ If there is growing evidence that inflation has peaked, then longer-term interest rates are likely to fall substantially from their current levels, serving as a potential catalyst for both risky assets and relatively looser financial conditions. “.
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Article by Hannah Estefania Perez / DiarioBitcoin
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