The total capitalization of the cryptocurrency market rose almost 4% after the last speech of the president of the United States Federal Reserve, Jerome Powell, in which he suggested that the process of “disinflation of the economy” has begun.
“Now we can say, I think for the first time, that the disinflationary process has begun […] we really see it in property prices,” Powell said during a Federal Open Market Committee (FOMC) press conference on February 1, shortly after announcing an interest rate hike of another 0.25%.
The interest rate hike and remarks appear to have done well for cryptocurrency markets, which had been flat in the run-up to the speech but saw market capitalization rise by more than $40 billion in the hours afterward. to the ad.
The global cryptocurrency market capitalization currently sits at $1.09 trillion, up 3.88% from the previous day, according to the latest figures from Coinmarketcap.
That said, Powell said they still expect inflation to continue to rise in the service sector for some time and to be prepared for “continued rate hikes.”
“We see more persistent inflation in that service sector, which will take longer to come down, and we have to get the job done. That’s why we’re here.”
Powell noted that “continued rate hikes” would still be appropriate for the economy as the Federal Reserve tries to get inflation back to its 2% target level.
Fed Reserve hikes by 0.25%. Its 8th hike. The Fed did not indicate its at the end of its hiking cycle. But, Fed chair said in his speech he sees inflation coming down soon. 50% of inflation is in “disinflationary” phase. Markets react positively. #FOMC #Fed #asx $spx $ndq $xjo pic.twitter.com/1misOrnD2b
— Jessica Amir (@JessicaDAmir) February 1, 2023
It should be noted that disinflation refers to a slowdown in the rate of increase in the general price level, unlike deflation, in which the general level of prices for goods and services decreases.
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