Bitcoin and cryptocurrency prices have soared over the last year, partly due to the U.S. Federal Reserve’s policy of ultra-low interest rates and huge cash injections into the financial system.
Fed chair Jerome Powell, last week nominated for another four-year term by president Joe Biden, has overseen the biggest monetary stimulus program in U.S. history to help offset the catastrophic economic effects of the Covid-19 pandemic—with bitcoin and crypto prices booming along with the stock market and many other assets.
Now, billionaire crypto investor Mike Novogratz has warned Powell could trigger a bitcoin and crypto market meltdown in 2022 as he acts to curb runaway inflation that’s leaped to a 30-year high.
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Federal Reserve chair Jerome Powell could inadvertently hit the price of bitcoin, ethereum and other … [+]
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“We have inflation showing up, you know, in pretty bad ways in the U.S.,” Novogratz, the chief executive of bitcoin and crypto-focused financial services company Galaxy Digital, told CNBC, asking: “Is the Fed going to have to move a little faster” to curb higher prices.
“That would slow all assets down. It would slow the Nasdaq
NDAQ
After slashing interest rates and launching huge stimulus programs at the beginning of the pandemic, central bankers around the world are under increasing pressure to act in the face of…
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