Future News From The Fed Could Mobilize Bitcoin

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Fed Chairman Jerome Powell is expected to speak at this year’s Jackson Hole conference, scheduled for Thursday. In Powell’s speech; It is thought that the central bank will summarize the steps that must be taken to bring inflation to a healthy level. So what will be the impact of this “lowering inflation” plan on Bitcoin?

Following the impact of the coronavirus on the economy, the fate of the dollar, which depreciated in direct proportion to the “public relief” policies implemented by the Fed hand in hand with the US government, also affects many other investment instruments. The dollar has suffered a serious depreciation against the currency in recent months, resulting in investors moving away from the dollar. Later, the dollar circulation rate dropped at historical levels, and this decline showed how low the economic activity in the US was. Many experts have already declared that the dollar is at the beginning of the end and have even called on people to invest in gold, silver or Bitcoin. With the dollar so unfavorable, eyes turned to the Jackson Hole conference on Thursday.

Due to the pandemic process, everyone is eagerly awaited by the speech of Chairman Jerome Powell at the Jackson Hole conference, which is planned to be held online this time. It is known that the title of the speech of the head of the Fed will be “Monetary Policy Review”. In the speech, it is planned to include an annual review both for the Fed and the public and to address future policies. The main frame of Powell’s speech by market experts is expected to be bringing inflation to a healthy level. Brown Advisory revenue manager Tom Graff said he expected Powell’s announcement to be a historic speech. At this year’s Jackson Hole conference, Powell is expected to announce his plan to “keep inflation high for a while,” unlike previous presidents. With this plan, the Fed will allow inflation to remain higher than normal for a period of time in order to reduce inflation to an average level. Those who find this decision logical as well as those who interpret it against the dollar are quite many.

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How Will It Find an Echo on the Bitcoin Front?

The bad trend of the dollar resulted in higher gold and silver prices. Meanwhile, Bitcoin was one of the top returns. Due to the bad performance of the dollar originating from the Fed and the USA, and the impact of other dynamics of the market, it was able to increase the value of Bitcoin to $ 12,400. As BTC and the dollar are two negatively correlated assets, the focus of Bitcoin investors has become the Jackson Hole to be held on Thursday. Gemini CEO, Tyler Winklevoss, made a statement on his social media account and referred to the Fed’s inflation increase plan. Winklevoss believes that the Fed, led by Jerome Powell, is one of the biggest boosters for Bitcoin. Names like Winklevoss argue that the move to increase inflation will be in favor of Bitcoin.

https://twitter.com/tylerwinklevoss/status/1298272822385500162


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