The price of Bitcoin (BTC) fell 4% in conjunction with comments made by Federal Reserve Chairman Jerome Powell regarding his stance on rising bond yields.
Powell reportedly acknowledged during a Wall Street Journal webinar that he would be concerned about a disruption in financial conditions as rising US government bond yields put upward pressure on borrowing costs.
A concern, however, that is not triggering any action from the Fed at the moment, with its Chairman stating as follows:
“We will be patient. We’re still a long way from our goals.”
It is fair to say that Powell’s comments are among the latest from a US central banker before the Fed enters its blackout on public comments ahead of its policy meeting on March 16th-17th.
The general reaction from traders remains one of disappointment that the Fed chairman did not provide any specifics on what they might possibly do to lower long-term rates.
Indeed, the dollar continued to rise and US equities fell further. Meanwhile, 10-year Treasuries extended their losses and inflation expectations reached new period highs.
Jerome Powell, Bitcoin and US inflation
It is no news that the queen of cryptocurrencies, Bitcoin, has also been brought to the table as a digital asset to hedge against inflation in the face of trillions of dollars of money printing by central banks around the world.