There is currently a debate around the world about the latest announcement by the United States Federal Reserve (Fed) that may or may not impact Bitcoin. This announcement is the new inflation targets, could it be beneficial for crypto?
U.S. Inflation Concerns Rise
Today an important change was announced in US monetary policy: They will allow an inflation rate above 2%!
According to Jerome Powell’s speech at the virtual conference, the institution agreed to adopt a policy of „average inflation targeting“, that is, the Fed will allow inflation to increase „moderately“ above the 2% target „for a period of time“.
Powell assures that the new policy is built on the lessons learned by Central Bank officials over the past few years about the dynamics of inflation.
Among other things, the news implies that the Fed will be able to continue printing money to stimulate the economy and, consequently, there will be a greater flow of money to the stock market and even to Bitcoin.
Shortly after the news, Bitcoin jumped 2% to $11,550. However, it’s currently down to $11,294 according to Crypto Online, the tool of CryptoTrend.
This decline could indicate that the market was already waiting for the news and, therefore, is already incorporated into the price. In fact, yesterday Tyler Winklevoss commented on Twitter about the effect of today’s Fed speech at Bitcoin.
This result coincides with what Tom Graff from Brown Advisory explained. Graff pointed out to CNBC that the market might not have a significant reaction.
In addition, Graff explains that the market had already anticipated Jerome Powell’s speech. Therefore, the market might not react until the Fed shows its willingness to follow the new policy.
„The market will have to see that they don’t raise interest rates even when unemployment drops a lot“ in order to believe the Fed and react to the event. What will happen to the Fed and Bitcoin?
Now Dave Portnoy is offering to save Bitcoin?
280 crypto accounts linked to North Korean hackers
The U.S. Department of Justice revealed that 280 Etoro crypto coin accounts were identified that could have laundered the money obtained from two large hacks in 2019.
„Despite the highly sophisticated laundering techniques used, the IRS-CI CyberCrime Unit was able to successfully trace the stolen funds directly to the North Korean players,“ said Don Fort, IRS’s Chief of Criminal Investigation.