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Monday, May 17, 2021

Dogecoin Talked Up By Crypto Traders To The Fed

Jerome Powell, Chairman of Fed, recently mentioned the increasing asset value like GameStop and Dogecoin stock. The meme token is presently spiked by almost 469% during this very month.

It is surprising that the goofy meme token of Dogecoin has experienced a massive rise since the beginning of 2021. This took the cryptocurrency traders by surprise as Dogecoin has easily surpassed the leading crypto, Bitcoin, and Ether in the past few months.

Meteoric Rise Of Dogecoin

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Recently there was a press conference on 20th April, Thursday where Brian Cheung, a reporter from Yahoo Finance, asked Powell regarding the sudden spike in DOGE and GameStop stock.

He pointed out their massive increase and suggested a connection between the easy monetary policies and the low rates. He further questioned the concern of the Fed over financial stability owing to such sharp price swings.

Powel commented that some asset prices are rising enormously and agreed on some influence of monetary policy. On the other hand, he informed that this frothy value increase is mainly because of the reason that the economy is reopening and the vaccination drive is doing well.

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Froth is a term of investment that indicates asset price separated from intrinsic value. This usually means that during the increase in asset value the objective value also increases.

According to Powell, the United States of America has a monetary policy that helps increasing asset value. This is mainly due to the less interest rates along with ongoing coronavirus stimulus payments.

DOGE price skyrocketed to an all-time high of almost $0.42 at the beginning of April from a low of $0.01 in January. This surge has motivated high-profile backers including Elon Musk, Tesla CEO, and Mark Cuban. Billionaire investor, to legally accept DOGE as a payment option.

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