Bitcoin (BTC) rose to $ 11,600 on August 27 as the US Federal Reserve promised to maintain an average inflation rate of 2%.
Data from Coin360 and Cointelegraph Markets showed the BTC / USD pair rose several hundred dollars on Thursday as Fed Chairman Jerome Powell gave a speech on the economic situation.
Daily snapshot of the cryptocurrency market, August 27th. Source: Coin360
Powell: Inflation could rise “moderately above 2%”.
The markets had been waiting for signs of inflation reorientingRumors suggest that the Fed would allow rates to rise to 4%.
In that case, Powell confirmed that inflation should rise above the Fed’s 2% target, but only temporarily.
“After periods when inflation has been below 2 percent, reasonable monetary policy will likely aim to keep inflation moderately above 2 percent for some time,” summarized Powell.
“In trying to get inflation averaging 2 percent over time, we’re not sticking to any particular mathematical formula that defines the average.”
At the time of going to press according to your comments The BTC / USD pair fell around $ 11,3900.7% more per day with higher volatility.
Daily chart of the BTC / USD pair. Source: Coin360
The pressure from the Federal Reserve’s comments was palpable
As Cointelegraph reported, expectations were already high that an overshoot in inflation would boost safe haven fortunes and hit the US dollar.
Gold surged above $ 1,970 on information from the FedThat’s an increase of more than $ 30 since the $ 1,940 increase during the week.
Daily chart of the XAU / USD pair. Source: TradingView
At the same time, the USD index, which had fallen to a two-year low in the past few weeks, fell on when the speech beganand then recorded about where it left off on Wednesday.
Daily chart of the US dollar index. Source: TradingView
“As we conduct monetary policy, we will continue to be very focused on promoting the best possible labor market for the benefit of all Americans.”Powell concluded.
“And we will try hard to get an inflation rate of 2 percent over time.”