The Bitcoin price has picked up some steam throughout the past few minutes, and the primary reason for this seems to be the fact that Jerome Powell is testifying before Congress.
The Chairman of the US Federal Reserve, Jerome Powell, is testifying before congress for the second day today.
Addressing the House Financial Services Committee in remarks, the Chairman admitted that inflationary pressure is higher than they had previously anticipated.
… inflationary pressures are running higher than expected at the time of our previous FOMC meeting.
However, he also noted that from a broader perspective, inflation is somewhat moderated compared to the middle of last year but still remains well above their target of 2%.
It’s also worth noting that he didn’t say something that he hadn’t previously disclosed, which is perhaps why the markets reacted somewhat positively at the time of this writing.
Bitcoin’s price increased mildly as volatility expectedly picked up.
Source: TradingView
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Bitcoin volatility has picked up again as US Federal Reserve Chairman Jerome Powell reiterated the inflationary pressure expected to be higher in the near future.
At a hearing before the US House Financial Services Committee on Tuesday, Powell addressed concerns about new inflationary pressures and reiterated his view that price pressures are likely to remain high for the foreseeable future. He emphasized that the Federal Reserve will be watching the situation closely and enacting policies that could help keep inflation from becoming a long-term problem.
The Fed Chairman’s comments had an immediate impact on the cryptocurrency market. Bitcoin prices jumped to a new all-time high of over $64,000 following the comments from Powell. This marked the seventh consecutive day of gains for the cryptocurrency and the first positive sign for the digital currency after nearly two weeks of bearish momentum.
Investors seem to be more bullish on the future prospects of cryptocurrencies following Powell’s remarks. Analysts believe that this renewed optimism could help to drive even more speculation and investment in the space over the coming days.
As the market continues to trend upward, investors are likely to remain on high alert. With expected inflationary pressures now confirmed by the Fed, Bitcoin could continue to remain a volatile asset with high risk and reward potential.
Investors should keep an eye on the market as the situation evolves and be aware of the potential risks and rewards of investing in cryptocurrency.
