Fomobits took note of Jerome Powell’s online speech last night to students, at the Town Hall conference. The Fed chief noted the ever-growing importance of cryptocurrencies, dropping a phrase about the Treasury exploring the hypothetical question of storing part of the country’s reserves in digital assets.
Making such a decision would literally “explode” the cryptocurrency market, repeating the situation of 2017, the 20-fold increase in the value of BTC, which has received the slang name “auzemuna” (growth to the moon), according to Fomobits.
Paradoxically, it is the Fed that is behind the current correction of Bitcoin. The digital currency is losing value amid a sharp strengthening of the fiat dollar before the release of the Minutes. This document will show the distribution of votes and comments of 18 Fed members at the last meeting, where the future U.S. monetary policy was determined.
The U.S. Financial Regulator’s decision to roll back support measures for the markets in the form of monthly injections of $120 billion will have a negative impact on all types of assets, fiat and digital currencies. The fall will not be long, next week the U.S. Congress may come to “help” Bitcoin.