The chairman of the Federal Reserve System Jerome Powell made a message that the tough struggle of the Central Bank with inflation was far from the end. As for the crypto industry, then he gave green light for Wall Street for further interaction.
Powell confirmed that US banks can freely conduct business with a cryptosector, which is really important for organizations from traditional finance. At the same time, he promised to hold interest rates at a restrictive level.
The official emphasized that inflation decreased relative to the peak of 2022, but still higher than the target indicator of the central bank of 2%. Both internal forecasts and expectations of the external market suggest that next year prices will rise faster.
This means that the Central Bank will most likely continue to expand its balance, printing money, which will even weaken the purchasing power of the US dollar.
In such a situation, liquidity begins to flow into risky assets, which are bitcoin and other cryptocurrencies. As a result, the price of bitcoin can set a new price maximum of $ 110,000, as many analysts predict, including from banks.
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Source: Cryptocurrency
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