The price of Ethereum has gone back to a sum of $2,000- which took place in the early trading hours in New York. This was accompanied by several traders trying to assess the Federal Reserve Chairman Jerome Powell’s congressional testimony. The USD/ETH exchange rate has elevated to 7.19% to attain its intraday high of $2,019. Similarly, Bitcoin with its Ether standing at 0.84 above zero has hit a respectable value of $32,379.
Ethereum Might Fall Short
Powell did manage to give his semi-annual monetary policy report to Congress last Wednesday, which is simply the day after the price index report for US Consumers showed an increase of about 0.9% between the last couple of months. In the end, it did manage to reach a value of 5.4% for the very first time in over three decades.
In Powell’s congressional testimony, the Federal chief stated that the inflation rate for the upcoming months will be on the same level. Yet, the Central Bank chief added that the rising prices shouldn’t prevent anyone from going forward and launching themselves into the bond-buying policy. And this statement includes cryptocurrencies like Ethereum too.
The Chief further stated that the threshold that there was still a long way to go to meet the limit of $120 billion monthly debt purchases. This was a guarantor or a cushion or the US Economy which protected it from getting completely ravaged by the coronavirus pandemic. With this, he is essentially stating that the US labor markets have to go a long way before they can make a complete recovery- be it a cryptocurrency like Ethereum, or any other financial institution.
The statements made by Powell did appear after a survey of the global fund managers was conducted by the Bank of America. The survey focused on those who believed that the global economy would keep improving at an exponential rate and there are definite signs of. The poll also called Bitcoin and Ethereum two of the most crowded trades.