The Federal Reserve Chairman Jerome Powell made a shocking announcement during yesterday’s widely watched speech, in which he noted that the Fed will be allowing inflation to start running past 2%. This had far-reaching implications, influencing the price of assets like gold, crypto, and equities.
Although high inflation is overtly positive for Bitcoin in the near-term, investors faded the move, with the crypto rallying as high as $11,600 before losing its momentum and plunging down to lows of $11,150.
This decline was fleeting, as bulls have since erased virtually all of the losses that came about as a result of this movement.
Despite the inflation news not having any positive short-term impacts on Bitcoin, the CEO of FinTech company Ripple believes that it will help direct heightened focus to crypto going forward – providing the entire market with a significant boost.
Fed Decides to Let Interest Rates Run Hot
The massive money printing that has been undertaken by the U.S. government was bound to lead to heightened inflation.