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Analysts and traders around the crypto market started assessing the impact it could place after the continuous tightening of monetary policies by Federal Reserves
On Tuesday, Chairperson of the US Federal Reserve Jerome Powell reiterated the financial authority’s pledge to keep the pressure tightening continue on the financial conditions related activities till the time when inflation starts showing signs of getting weak. It might be the result that the very next day, the top cryptocurrency bitcoin slid below $30,000 amidst the retreat that traditional markets witnessed along with the assessment that traders and analysts are performing regarding the potential economic consequences of Powell’s remarks.
The dip in bitcoin over the past several weeks has resulted in the top cryptocurrency setting up to extend its losing streak of seven week long. This is already the trade facing the low for very long that too was way back in early 2010. The flagship cryptocurrency has been through a lot of downturns in broader markets where stricter crypto regulations, disappearing retail interests along with the systematic risks in the crypto space.
During the same time span, other major cryptocurrencies followed the bitcoin’s plunge where Polkadot (DOT) has been recorded losing its value by about 6%, Etheruem (ETH), Avalanche (AVAX), XRP, Binance (BNB) also lost their regular value. Other cryptocurrencies like Tron (TRX) were among several crypto assets that managed to trade in green zone with positive sentiments about the stablecoin of the network, USDD.
On Tuesday, Powell said that the Fed consistently remained committed for the reduction of inflation alongwith the concerns and could use the aggressive measures in order to ensure a strong economic situation. At the event of Wall Street Journal, Powell said that what everyone needs to see is that inflation is on its way to get clear and convinced and hence they are going to keep pushing their limits until they see this.
Fed Chair further added that to achieve price stability, restoring the stability in price are among some of the unconditional needs. There is something that financial authority needs to do because the economy does not really work for workers or for the business and not even for someone facing price instability. It’s the real bottom for the economy.
The US Federal Reserves has taken pledge previously to keep the inflation in check as it tightening the balance sheets that follows about two years of undecided stimulus in order to help an unwell economy amidst the ill effects of the then coronavirus pandemic.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
