A modest Bitcoin rally to a possible challenge of the level of $ 86,000 quickly overturned during the negotiation hours of the American afternoon on Wednesday while the president of the federal reserve, Jerome Powell, warned the effects of the pricing regime of President Trump.
“The level of pricing increases announced so far is significantly larger than expected,” said Powell in a speech. “The same goes for economic effects, which will include higher inflation and slower growth.”
In other words, Stagflation – a return to a significant part of the 1970s when the United States experienced low economic activity and two -digit inflation.
“We can find ourselves in the difficult scenario in which our double -compressed objectives are in tension,” continued Powell.
The Bitcoin (BTC) price fell by around 2.5% in the minutes that followed Powell’s comments, now negotiating $ 83,700, down 1.5% in the last 24 hours.
The American actions, which had tried to set up a return from the opening of the drops, were also affected, the Nasdaq dropped from 3.4% to a hollow of session.
