Yesterday (17 May), on the American TV platform CBS, on Wednesday (13 May), Scott Pelley published an interview with Federal Reserve President Jerome Powell in the popular weekly news program “60 Minutes”. What Powell said in this interview could help the price of Bitcoin rise above the $ 9900 level today.
When Pelley asked Powell what kind of “economic reality” people in the US should be prepared for, Powell replied:
“Well, to be honest, this will be a time of great pain and difficulty. It was so fast and so powerful that you can’t really put the pain and uncertainty that people feel into words. It will take us some time to go back to the old.
“But I can say that. You don’t want to bet against the American economy in the long run and even in the medium run. This economy will recover… It may take some time. It may be extended until the end of next year. We really don’t know. We hope it will take shorter, but no one really knows. ”
As for how much the US GDP will decrease in the second quarter of 2020, Powell said the percentage drop could be “in the twenties or thirties.” However, Powell hopes that there will be growth in the second half of the year.
Perhaps the most interesting part of the conversation was when Pelly asked if it was right to say that the Fed’s system was sinking in money. Powell said:
“Yeah. We did. You can think of it that way. We did this. ”
Pelley then asked where this money came from and whether the Fed had just printed this money. Powell replied:
“We print digitally. So, as a central bank, we have the ability to create money digitally. We do this by purchasing Treasury Bills or bonds for other government-guaranteed securities, which actually increases the money supply. We also print the real currency and distribute it through the Federal Reserve banks. ”
According to the data of CryptoCompare, shortly before the release of this episode of 60 Minutes, Bitcoin was traded around $ 9,637, while two hours after the episode ended, Bitcoin was traded at $ 9,925.
Arthur Hayes, Founding Partner and CEO of BitMEX crypto derivatives exchange today, gladly tweeted that the price of the September 2020 BTC futures contract exceeded $ 10,000:
A gunslinger never sits with his back to the entrance. Watch the backend, XBTU20, rocket as we tear through 10k. pic.twitter.com/amCwsz6FCU
— Arthur Hayes (@CryptoHayes) May 18, 2020
Anthony Pompliano (Pomp), Founding Partner and Partner of crypto-focused investment company Morgan Creek Digital, sees Bitcoin price even higher in the medium term.
In an interview with Yahoo Finance on Wednesday, May 13, Pomp said he expects the price of Bitcoin to reach $ 100,000 by December 2021.
Popular cryptocurrency analyst Josh Rager said the following about Bitcoin’s latest price movement and Fed’s ongoing money pressure:
“There’s a nice cruise over $ 9550. If the FED continues to print money, it will rise even more. ”
$BTC – Nice weekly close above $9550s
Looking forward to watching the FED pumping all markets this week pic.twitter.com/AzRm78Rzyy
— Josh Rager 📈 (@Josh_Rager) May 18, 2020