{"id":1934477,"date":"2023-02-01T19:53:36","date_gmt":"2023-02-02T00:53:36","guid":{"rendered":"https:\/\/wordpress-1016567-4521551.cloudwaysapps.com\/plato-data\/bitcoin-spikes-above-24k-as-fed-chair-powell-talks-of-disinflation\/"},"modified":"2023-02-01T19:53:36","modified_gmt":"2023-02-02T00:53:36","slug":"bitcoin-spikes-above-24k-as-fed-chair-powell-talks-of-disinflation","status":"publish","type":"station","link":"https:\/\/platodata.io\/plato-data\/bitcoin-spikes-above-24k-as-fed-chair-powell-talks-of-disinflation\/","title":{"rendered":"Bitcoin spikes above $24K as Fed chair Powell talks of \u2018disinflation\u2019"},"content":{"rendered":"

The price of Bitcoin (BTC<\/a>) broke through the $24,000 ceiling and the total crypto market cap jumped nearly 4% after United States Federal Reserve Chair Jerome Powell indicated that inflation had begun slowing down in the world\u2019s largest economy.<\/p>\n

\u201cWe can now say, I think for the first time, that the disinflationary process has started [\u2026] we see it really in goods prices,\u201d said Powell during a Feb. 1 Federal Open Market Committee press briefing shortly after announcing an interest rate hike of 25 basis points.<\/p>\n

The rate hike and Powell\u2019s remarks appeared to have gone down well in the crypto markets, which had been trading sideways in the lead-up<\/a> to the speech but saw market cap increase by over $40 billion in the hours after the announcement. <\/p>\n

Cryptocurrency market capitalization from Feb. 1 to Feb. 2. Source: CoinMarketCap<\/em><\/figcaption><\/figure>\n

The global crypto market cap is now at $1.09 trillion, up 3.88% over the last day, according<\/a> to the latest figures from Coinmarketcap.<\/p>\n

Meanwhile, BTC tipped<\/a> slightly over $24,000 for the first time in 2023, reaching $24,161.27 according to Coinmarketcap.<\/p>\n

Related:<\/strong> <\/em><\/strong>Bitcoin bulls plan to flip $23K to support by aiming to win this week\u2019s $1B options expiry<\/em><\/strong><\/a><\/p>\n

That being said, Powell said they still expect inflation to continue rising in the services sector for some time and to be prepared for \u201congoing rate rises.\u201d<\/p>\n

\u201cWe see ourselves as having more persistent inflation in that [services] sector, which will take longer to get down, and we have to complete the job. That\u2019s what we\u2019re here for.\u201d<\/p><\/blockquote>\n

Powell noted that \u201congoing rate rises\u201d would still be appropriate as the Federal Reserve attempts to bring inflation back to its 2% target level.<\/p>\n

\n

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 \u201cdisinflationary\u201d phase. Markets react positively. #FOMC<\/a> #Fed<\/a> #asx<\/a> $spx<\/a> $ndq<\/a> $xjo<\/a> pic.twitter.com\/1misOrnD2b<\/a><\/p>\n

\u2014 Jessica Amir (@JessicaDAmir) February 1, 2023<\/a><\/p><\/blockquote>\n

It should be noted that disinflation refers to a slowdown in the rate of increase of general price levels, as opposed to deflation, where the general price level of goods and services decreases.<\/p>\n