Statements by Federal Reserve Chairman Jerome Powell cast their shadows on Bitcoin prices, which rose for instants before losing gains during Thursday’s trading session.
The price of Bitcoin surged from $11,400 to $11,594 in 20 minutes until 09:30 a.m. ET and then gave up its gains within the next few minutes.
The cryptocurrency, which opened trading of the session at $11,481.80, lost around $240.69 by press time, recording $11,241.11 with a trading volume of 22.05 billion.
Jerome Powell statement
Federal Reserve Chairman Jerome Powell announced Thursday that the central bank has formally approved a policy of average inflation targeting. That means it will allow inflation to jump above 2% for some time, according to his speech.
During the last year, the bank worked on keeping the inflation rate at 2%. This is considered a manageable rate and reflects a healthy economy, according to policymakers.
According to CNBC, since the end of the financial crisis, the Fed has struggled to hit its 2% inflation target. Officials hope the new approach will change the landscape, raising expectations and allowing inflation to float higher as rates remain low.
As per unemployment data, Powell stated they can stay lower for longer before the Fed starts thinking about raising rates. This led to a decline in short-term yields and gains along the long end of the yield curve.