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- During an interview with David Rubenstein, Powell reiterated the disinflationary process.
- The market seems to recover; Nasdaq by 1.5%, S&P 500 by 1.1%, post the interview.
After the bad year 2022, the market leader Bitcoin is rallying at $23,245.26 at the time of writing. The whole crypto market seems to be returning on its feet, as it suffered massive blows last year. From major collapses and bankruptcies, it was a seriously bad situation in the industry. At the same time, Jerome Powell had repeated his ‘disinflationary process’ comment during an interview with Carlyle Group co-founder David Rubenstein.
Disinflationary Process started: Powell
Powell, during the interview, reiterated his disinflationary process statement, saying that even though it has started, a great deal of time is still required before its fruition, and the United States Federal Reserve seems ready to declare its victory in the fight against rising price levels.
The interviewer wasted no time and went directly into it by asking whether Friday’s blowout jobs report, where nearly 517,000 jobs were added, had somehow altered the Fed’s decision just two days before hiking their benchmark Federal Funds rate by only 25 basis points. In reply, Powell said that this news could not have made any possible difference.
The comment from Powell, “disinflationary process has started,” could be a reason for a sharp jump in both traditional and Bitcoin prices after the conference. Although he was stuck with the phrase from Tuesday afternoon, he argued that the process has just begun and will require additional rate hikes for its fruition.
Overall, it’s difficult to let go of the comment as a pacifist, but the market seems to expect a combative edge to be given when the Fed chair gets a chance to make a public statement after Friday’s job reports.
Effect on the Market
The traditional market managed to reacted quite good as NASDAQ went up by 1.5%, S&P 500 was up by 1.1%, and the ten-year Treasury yield is lower by just four basis points at 3.61%. Bitcoin was trading at $23,245.26 with a jump of 1.54%; its value against Ethereum also hopped by 1.155 and was at 13.85 ETH. Its market cap gained 1.54% to be at $448 billion, while its volume was seen jumping by 10.56% and was at $27 billion in the last 24 hours. Still sitting at the number one position, it shares a market dominance of a whopping 41.19%.
The current rate of BTC was down by 66.19% from its all-time high of $68,789.63 achieved on November 10, 2021, while it was up by 35,391.26% up from its all-time low of $65.53 high on July 05, 2013.
With conditions improving in the crypto industry, its effect on the macroeconomy can boost the slow economy. With the statistics nearing the lower points of 2008- 2009, a major boost is required to avoid slipping into another recession period.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
