Forex and Crypto News

Bitcoin fell 7% after the statement of the Fed chairman

17:09 05 March /2021

After the speech of the head of the Federal Reserve Jerome Powell the pressure on Bitcoin increased sharply .

The Fed chairman said that the regulator does not plan to adjust the monetary policy yet. Capital inflows to the stock market are growing thanks to the good yields on government bonds.

In an interview to the Wall Street Journal, Jerome Powell noted that the economy has not yet reached its inflation target. Therefore, at this stage, there is no need to tighten monetary policy.

Investors took the statement of the head of the Federal Reserve as a signal for action. On the eve, the yield on ten-year bonds exceeded 1,5%.

Powell's speech triggered a sharp jump in the dollar index. According to the latest data, on Friday, this figure reached 91.9 points.

The withdrawal of capital from risky assets led to a significant weakening of the Bitcoin price. The largest digital currency experienced its biggest one-day drop this week (-7%), with BTC trading at around $47600 at time of publication.

Powell spoke about the need to stimulate economic growth. We saw heating up the sentiment of traders rushing into bonds and the exit of capital from the cryptosphere.

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