Bitcoin plunges by more than 5% at Powell’s words,’Acknowledged for inflation’

Input 2021.03.05 08:34 | Revision 2021.03.05 08:48

The value of bitcoin also plummeted in response to the remarks of the chairman of the Federal Reserve (Fed) Jerome Powell, who acknowledged the’inflation pressure’.

As of 7:30 a.m. on the 5th (Korean time), Bitcoin is recording $48,070, a drop of 5.30% from 24 hours ago on the CoinMarket App, a site that relays the cryptocurrency market. By 5 a.m., Bitcoin was pushed to the $47,000 level.

The day before, Bitcoin broke the $50,000 mark, which was the psychological resistance line, and rose to the $52,000 level in two weeks, but plunged again in one day. Experts predicted that by the day before, Bitcoin had a high possibility of further rallying, surpassing $50,000.

The value of bitcoin surpassed 58,000 dollars on the 22nd of last month and reached an all-time high, and then fell to the 43,000 dollar level on the 1st of this month due to concerns about inflation. Since then, the buy and sell tax of Bitcoin has been fighting each other with the 50,000 dollar mark.

Despite the recovery of $50,000, the plunge again is attributed to Fed Chairman Powell’s failure to calm market inflation concerns. He said, “There is inflationary pressure, but only temporary,” he said, but he couldn’t get rid of market unrest.

Powell also said the Fed would maintain its monetary expansion and low interest rate policy stance until Americans return to work. However, he did not meet the expectations of the bond market, such as the Fed increasing the size of bond purchases or changing the types of assets purchased to respond to rising market interest rates.