Falls in bitcoin this Friday that has erased all the weekly gains and has reached the vicinity of $ 46,000. The digital asset has come to yield around 5% and it maintains its marked volatility due to the caution of investors after the correction of the February rally that took it to the all-time high above $ 58,000. In addition, it has been weighed down by the rises in the dollar caused by the statements of the president of the Federal Reserve (Fed) Jerome Powell, which did not convince the market that the body prepare new stimuli.
Although his general rhetoric was accommodative and reiterated the commitment to maintain an ultra-soft monetary policy until the economy is "well advanced on the road to recovery", the market has interpreted his words as that the central bank has doubts about injecting more gasoline into the economy. The price of bitcoin quadrupled last year and has risen 66% this year on speculation that the cryptocurrency could serve as a hedge against inflation amid the printing of trillions of dollars by central banks around the world.
The rest of ‘altcoins’ follow in the wake of the most traded of the crypto currencies and they stain red with notable declines for Ethereum of more than 4% to around $ 14,500. Total capitalization also leaves 1.5 trillion to settle at 1.44 trillion.
For bitcoin traders who have been betting on the cryptocurrency as a good hedging against potential dollar degradationPowell's comments offered little sign that the Fed plans further action. Such moves could include expanding the US central bank's bond purchase program to $ 120 billion a month.
"Powell did not deliver," tweeted cryptocurrency operator Alex Kruger. "He basically repeated his usual 'dovish' lines," says 'Coindesk'.
Stocks were down on Thursday, also potentially reflecting dimmed expectations for more stimulus that could boost the stock market.