If you have been following the latest crypto news, you probably know that the Federal Reserve Chairman Jerome Powell made an announcement during his speech, when he noted that the Fed will be allowing inflation to start running past 2%. This had a lot of implications, and will influence the price of crypto and assets like gold and equities. The Ripple CEO says a lot of things about this decision and how it may benefit crypto in the long run.
Basically, even though high inflation is overly positive for the coin in the near term, investors faded the move and crypto is rallying as high as $11,600 before losing its momentum and plunging to the lows of $11,150.
This decline in the Bitcoin news was fleeting, mostly because bulls erased all of the losses that came as a result of the movement. Despite the news about the inflation not having any positive short-term impacts on the coin’s price, the Ripple CEO says that it will help direct heightened focus to crypto going forward – and provide the entire market with a significant boost.
All of this is being done in order to support the US economy. However, people are apparently looking for alternatives to the dollar and one of them (among precious metals) is crypto. The industry has expanded a lot and as of lately, we have seen a new growth of the markets when BTC shot up to $12,000.
The massive money printing which has been undertaken by the US government was bound to lead to a heightened inflation. The CEO of Ripple noted that crypto will be boosted as a result of this, helping the crypto markets:
“The pandemic is throwing so many playbooks out the window… yesterday’s action flies in the face of decades of precedent. Signs point to further dollar debasement in the near term (leading to further diversification of assets which will certainly be good for crypto).”
Now, it is crucial to keep in mind that the benefits are long term and the implications of the Fed’s decision will likely have a muted short-term impact on the crypto market as a whole.