Powell speak again in front of the US Senate with open stock exchanges e Bitcoin pay the highest price, on an otherwise very good day for $ BTC and for the whole sector.
Bitcoin, which should be an ideal asset against inflation, is the first to suffer – and we will talk about this in our own analysis today. An analysis that will also aim to understand how the market.
Market that remains full of opportunities, which we can also exploit in the short term with the eToro platform – go here to get a free demo account with top analytics and functionality – intermediary on whose price lists we will find not only Bitcoin, but also others 40+ cryptocurrencies of great thickness.
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Powell talks about FED and triggers panic on the markets
Situation bordering on the paradoxical, because we are faced with the classic secret of Pulcinella. Jerome Powell, leader of the FED, the most powerful central bank in the world, in a hearing at US Senate confirmed that the “transitory” part of inflation he has been talking about for weeks will probably not be transitory – suggesting that FED it could begin to curtail bond purchases and monetary expansion by anticipating the times.
A situation we had already talked about extensively about Cryptocurrency.it, disputing what was stated so much by Lagarde how much from Powell and considering inflation more than a passing phenomenon. However, this is not the place for debates of this type and we will necessarily have to try to understand why $ BTC paid such a high price. Or why Bitcoin, which was close to altitude $ 59,000 is trying to stay above $ 56,800, support on which the next few hours will be played.
The reduction in purchases and monetary expansion may have started earlier
Or quoting almost verbatim Powell, it would be appropriate to think about it. This means a reduction in the dollars that will be placed on the market. It is news that strengthens the dollar against virtually all asset that we can compare.
This is the graph of EUR / USD, With the’EUR that following a news of this type had the exact same trajectory as Bitcoin. Therefore the first point is that the US dollar comes out strengthened from such a statement – and it is more than obvious that Bitcoin correct, even by return of post.
The other cryptocurrencies appear to be stronger
And there is little to say about this. Terra Luna has surpassed its historical record, as well as there was an excellent performance of Ethereum and also of Binance Coin.
It is the regular alternation of short-term cycles – which should not surprise anyone by now and which is generally preparatory to a recovery of dominance from Bitcoin, albeit with uncertain timing.
What is certain is that Bitcoin is situated undervalued compared to its normal trajectory and that someone is already taking advantage to buy it up. Anyone wishing to buy the real coin can operate through Crypto.com – go here to open your account with a $ 25 Bonus – account that allows you to invest with direct purchase and which is more suitable for those who want operate in the medium and long term.
Which we also recommend in relation to those that are ours Bitcoin forecasts, which by the end of the year could see a very decisive leap, albeit the complications of November seem to have pushed away the goal of $ 100,000.