Eight months ago, Jerome Powell singlehandedly exiled Bitcoin and other cryptocurrencies from the traditional trading platforms. Jerome Powell is the reigning Chairperson at the Federal Reserve of the United States. The FR arranges FOMC meetings at regular intervals that are attended by all the members and stakeholders. The Federal Open Market Committee operates under the wing of FR.
However, it is responsible for making key decisions concerning money supply and setting interest rates for open markets in the United States. Following his attendance and remarks, Bitcoin crashed down. Nevertheless, investors seem to be parting ways with the implication of super inflation that somewhat reinstated the dollar’s price. The Gold and Silver trading pairs XAU and XAG also crashed.
Alex Krüger is an economist and crypto trader. In a recent tweet, he claimed that Powell tends to counterbalance asset prices. He further explained that Powell has a history of breaking an asset during FOMC and pump it farther than before after his congress address. He also added that Powell is set to attend the congressional meeting next Tuesday.
Ben Lilly is a crypto analyst from Jarvis Labs. He opines that the US government would take part in expanding upon the Bitcoin bull run. Lilly claims that federal authorities have a high propensity to approve another money printing round. While the dollar would naturally go down, Bitcoin would have a chance to resurface. He also argued that at the moment, the government wants to demote the dollar for balancing low employments rates and increasing exports.
Not everyone is on Board with the Dollar Undermining the Program
Raoul Pal is a former Goldman Sachs employee and hedge fund manager. In his opinion, the US dollar is set to get stronger in the short term. He explained that the slow movement of the economy, ongoing destruction of COVID-19, and persistent lockdown restrictions for commercial entities might seem like important factors for depreciating the US dollar.
At present, Bitcoin is trading at $35K and struggling to keep steady at the mid support levels. Only time will reveal if the new Federal Reserve’s guidelines and Powell Congress’s address to the congress would help the flagship cryptocurrency to recover. Looking at the Euro and Wall Street exchange forecasts, it would be said that there are too many absent variables in place.