Jerome Powell, the chairman of the US Federal Reserves, have spoken recently regarding the measures they have taken amidst the financial crisis brought by the coronavirus on the aired 60 minutes interview this last Sunday. The interview was conducted by the prominent news anchor, Scott Pelley, wherein the Fed chair revealed that they have essentially showered the economy with money as response to the fall of the Dow Jones Industrial Average this last March. Not only that, but he also said that investors are now turning their heads away from the US Treasuries itself. Viewers of the said interview and on Twitter have interpreted this as concrete evidence of the need for cryptocurrency.
According to Powell, the US Federal Reserves have the power to print both digital US dollars (CBDC) and physical bills. He said that they can do just that by way of purchasing Treasury Bills or bonds for other securities guaranteed by the government which has actually been increasing the overall money supply.
Powell was then asked by Pelley regarding whether or not the Fed could do more amidst the ongoing pandemic. He answered by stating that the bank would do its best to expand its current lending programs for as long as it is needed to do so.
Does this prove we need Bitcoin?
Crypto enthusiasts from all over various social media, specifically on Twitter, have since pounced on the Fed chair’s official remarks. Marty Bent, a famous podcaster, has said that such inflationary procedures, such as Powell’s remark of them flooding the economic system with money, would be considerably more difficult if we were indeed using Bitcoin (BTC). Others, though, like the crypto enthusiast, Nick Chong, were more positive and concise towards Powell’s words within their tweets.
Bitcoin’s value flirted around the high $9,000s while stocks shoot up after Powell’s interview
The largest cryptocurrency based on the capitalization within the market fluctuated around the high $9,000 mark after the interview with the Federal Reserve Chairman aired. That being said, it also came close to its 10-day and 50-day moving averages which is basically an indicator that signals that the price will likely remain stagnant in the near future.
Stocks, on the other hand, got a significant boost right after the particular interview. This irrational exuberance may be attributed to the fact that the Fed chair, himself, said that they are willing to take unprecedented actions in an effort to minimize the damage brought by the coronavirus pandemic to our economy. Not only that, stocks also got a major boost as investors felt optimistic about a vaccine for the coronavirus developed by Moderna, a Nasdaq-traded biotechnology firm.