Following remarks by Federal Reserve Chairman Jerome Powell that the government is starting to contain inflation, bitcoin soared upward along with markets before settling down. However, Powell emphasized that it will take time to adequately control inflation.
The digital asset first increased when the head of the US central bank predicted reduced inflation at a speech at the Economic Club of Washington, D.C. on Tuesday.
The S&P 500 and Nasdaq are now down as a result of Powell’s remarks that it will take time to keep inflation under control. The largest cryptocurrency by market size did what it normally does and gained with American stocks.
He predicted that the procedure would take some time.
Powell did, however, predict that there will be “substantial progress on inflation” this year, which is encouraging for investors in “risk-on” assets like Bitcoin.
The Fed initially increased rates by 75 basis points four times in an effort to curb 40-year high inflation last year. This had a negative influence on the value of stocks, shares, and cryptocurrencies.
With U.S. equities, especially tech companies, suffering due to traders shifting their bets away from risk and returning to the dollar as a result of the Fed’s aggressive monetary strategy to bring inflation down to 2%, the cryptocurrency market has taken a beating.