The Bitcoin price has surged in the past few minutes, and the reason behind this sudden spike is the testimony of Jerome Powell, the Chairman of the US Federal Reserve, before Congress. Powell is testifying for the second day today, and in his remarks, he admitted that inflationary pressure is higher than they had previously anticipated.
Powell addressed the House Financial Services Committee and stated that “inflationary pressures are running higher than expected at the time of our previous FOMC meeting.” However, he also noted that inflation is somewhat moderated compared to the middle of last year but still remains well above their target of 2%.
The markets reacted positively to Powell’s remarks, and the Bitcoin price saw a sudden surge. It’s worth noting that Powell didn’t say anything that he hadn’t previously disclosed, which suggests that the markets are reacting to the overall sentiment of his remarks.
The sudden surge in the Bitcoin price is a reminder of the cryptocurrency’s volatility and sensitivity to macroeconomic factors. As the world’s largest cryptocurrency, Bitcoin is often seen as a hedge against inflation and economic uncertainty. Powell’s remarks about inflationary pressure may have triggered a bullish sentiment among Bitcoin investors, leading to the sudden surge in price.
The cryptocurrency market has been on a rollercoaster ride in recent weeks, with Bitcoin’s price fluctuating wildly. However, the sudden surge in price following Powell’s testimony is a positive sign for Bitcoin investors, who have been eagerly waiting for a bullish trend to emerge. As always, investors should exercise caution and do their due diligence before investing in any cryptocurrency.
