Bitcoin was once again hovering around the $20,000 support level when Federal Reserve Chairman Jerome Powell testified before the US Congress on Wednesday. He vowed to continue fighting inflation by raising interest rates, a tone that has often terrified cryptocurrency markets in the past.
- Bitcoin is worth $19,940 at the time of writing. That’s up from $20,400 at 3:40 pm UST – just 30 minutes before.
- This comes after the cryptocurrency initially surged during Wednesday’s hearing to $20,850 at 2:30 p.m. UST.
- At the Powell hearing said Congress that the Federal Reserve can and will continue to bring down inflation.
- “We are committed to bringing inflation down and we are moving fast towards that,” he said.
- The Chairman expects that price cuts will require further interest rate hikes beyond the current 1.75% to 2.0% discount rate.
- Last month alone, the Fed raised rates by 75 basis points, a move it believed would not be needed in the previous month. However, as inflation flares up faster than expected, the central bank is poised to act more aggressively until it finds “convincing evidence that inflation is declining.”
- The chairman said good labor market conditions leave the US poised for further gains. However, according to ZerohedgePowell also said it would be “very difficult for the economy to achieve a soft landing”.
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Credit : cryptopotato.com