Bitcoin and gold prices have been on the rise after Fed President Jerome Powell announced the night.
In his 1-hour speech, the Fed President explained how the US economy was affected by the Coronavirus and mentioned the steps to be taken to recover the economy. Powell said that the US economy could shrink by 30% in the second quarter; in return, they announced that they would pursue monetary expansion policy. Powell said, however, that interest rates would not fall into the negative zone.
Answering Scott Pelley’s question about unemployment rates, Powell said that the unemployment rate across the country could rise to the 20-25% range. However, Powell did not forget to add that the current situation is different from that of the Great Depression.
Bitcoin and Gold Rising
We can say that these statements made by the Fed President worked for Bitcoin and below. Because the price of the two has also increased.
Yesterday many investors expected a drop in Bitcoin price. But Bitcoin acted in the opposite direction and began to push $ 10,000 again with Powell’s comments. We will see where the next stop of Bitcoin, which is still above $ 9,800, is now.
Meanwhile, the ounce price of gold started to move upwards. Powell’s statements on the US economy sparked gold, and the ounce price of gold went above the $ 1760 level. Will the gold price, which is currently 1763 dollars, increase up to 3 thousand dollars as Bank of America predicted, we will see over time.