Cryptocurrency sell-off is not a systematic concern for the Fed and does not affect Fedâ€™s policies, two Federal Reserve Bank presidents said Wednesday. â€œWe are all quite aware that crypto can be very volatile,â€ said the president of the Federal Reserve Bank of St. Louis.
Crypto Sell-off Does Not Change Fed Policy
Two Federal Reserve Bank presidents have commented on the steep sell-off in cryptocurrencies Wednesday. St. Louis Federal Reserve President James Bullard, who firmly believes that cryptocurrency poses no threat to the U.S. dollar, said:
Bullard said in February that whether â€œbitcoin price goes up or downâ€ it â€œdoesnâ€™t really affectâ€ the Fed policies. He added that the cryptocurrency is no threat to the USD because â€œinvestors want a safe haven. They want a stable store of value, and then they want to conduct their investments in that currency.â€
Another Federal Reserve Bank president who commented on the cryptocurrency sell-off Wednesday was Atlanta Fed President Raphael Bostic. Making a similar statement during an interview with Bloomberg TV, he said:
â€œItâ€™s not something I really incorporate very much into how I think about where our policy should be,â€ he affirmed.
Bitcoinâ€™s price briefly fell below $30K on Bitfinex early Wednesday morning but has since recovered. The price of BTC is currently $40,361 based on data from markets.Bitcoin.com.
What do you think about what the two Federal Reserve Bank presidents said about cryptocurrency? Let us know in the comments section below.
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