The price of Bitcoin (BTC) breached the $24,000 ceiling and the total crypto market capitalization jumped nearly 4% following a speech by US Federal Reserve Chairman Jerome Powell in which he suggested that the process of disinflation of the economy has begun.
“Now we can say, I think for the first time, that the disinflationary process has started … we really see it in the prices of goods,” Powell said during a Federal Open Market Committee press conference on February 1, shortly after announcing a federal interest. rate rise of 0.25%.
The interest rate hike and comments seemed to have worked well for crypto markets, which had been trading sideways in the run-up to the speech, but saw market cap rise by more than $40 billion within hours. after the announcement.
The global crypto market capitalization is now at $1.09 trillion, up 3.88% from the last day. according to to the latest figures from Coinmarketcap.
Meanwhile, BTC tip just over $24,000 for the first time in 2023, reaching $24,161.27 according to Coinmarketcap.
Related: Bitcoin bulls plan to turn $23K into support aiming to take this week’s $1B options expiration
That said, Powell said they still expect inflation to continue to rise in the services sector for some time and to be prepared for “continued rate increases.”
“We see more persistent inflation in that (services) sector, which will take longer to come down, and we have to finish the job. That’s why we’re here.”
Powell noted that “continued rate increases” would still be appropriate for the economy as the Federal Reserve tries to bring inflation back to its 2% target level.
The Federal Reserve rises 0.25%. His eighth walk. The Fed did not indicate that it is at the end of its hike cycle. But, the Fed chair said in his speech that he sees inflation coming down soon. 50% of inflation is in the “disinflationary” phase. The markets react positively. #FOMC #Fed #asx $spx $ndq $xjo pic.twitter.com/1misOrnD2b
—Jessica Amir (@JessicaDAmir) February 1, 2023
It should be noted that disinflation refers to a slowdown in the rate of increase in general price levels, as opposed to deflation, where the general level of prices for goods and services decreases.
