Cryptocurrency market cap jumped nearly 4% after Federal Reserve Chairman Jerome Powell hinted in a speech that the economy was starting to disinflate.
“For the first time, we can now say that disinflation has begun,” Powell said at a post-FOMC press conference on February 1, shortly after announcing a 0.25% rate hike.[…] We can really see that in commodity prices.”
This remark seems to have been well received in the cryptocurrency market, which had been trading flat until the speech, but the market capitalization increased by more than $ 40 billion in the hours after the announcement.
According to Coinmarketcap figures, the market capitalization of the global cryptocurrency market is now at $1.9 trillion, up 3.88% from the previous day.
Still, Powell said he expects inflation to continue in the services sector for some time and to be prepared for “continuous interest rate hikes.”
“We see more sustained inflation in that (services) sector and it will take time to bring it down and we have to get the job done, which is why we are here. is”
Mr. Powell said “continuous rate hikes” are still appropriate for the economy as the Fed tries to return inflation to its 2% target level.
Disinflation refers to a slowdown in the rate of increase in the general price level, and is different from deflation, in which the general price level of goods and services declines.
Leave a Reply