Cryptocurrency price

Cryptocurrency Price Check: Disruption Could Follow Powell’s Appointment

The appointment of Jerome Powell as head of the Federal Reserve next year could disrupt cryptocurrency prices, a prominent crypto analyst said Monday.

Bitcoin, the leading cryptocurrency by market cap, fell 1.2% to $ 58,303 on the last check. Ether, the cryptocurrency that runs on the Ethereum blockchain, was down nearly 2% to $ 4,248 and dogecoin was down 2.1% to 22 cents.

Powell has been appointed to head the Fed, President Joe Biden said on Monday, with Lael Brainard as vice president.

Both positions will have to be confirmed by a majority vote in the Senate. The house is split 50-50, with Democrats in control because Vice President Kamala Harris can break the tie.

Winston Ma, Managing Partner of CloudTree Venturessays Powell may face opposition from progressives in the Senate.

“The potential change in [Federal] The chairman of the reserve could mean a significant change in US monetary expansion policy, crypto regulation, and the US digital currency agenda. says Ma, author of “The Digital War – How China’s Tech Power Shapes the Future of AI, Blockchain and Cyberspace”.

“All of this can dramatically disrupt the crypto trading market.”

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Meanwhile, David Lesperance, Managing Partner of Immigration and Tax Advisor Lesperance & Associates, urged investors to choose their cryptocurrency investments carefully, as some cryptos have collapsed or have had their founders indicted.

“As the holidays approach, crypto enthusiasts should take a few minutes to review the ‘It’s a Wonderful Life’ banking scene and apply its lessons to their own investments,” he said.

“Until the regulatory wildfire clears the undergrowth of volatile trading, cold wallets may be the modern day equivalent of keeping your assets under the mattress.”

In addition, Christopher Vecchio, senior strategist at DailyFXsaid the halving, where the reward for bitcoin mining is halved, serves to reduce the rate at which the new bitcoin supply is unlocked.

“After each of the first three halving events, bitcoin prices subsequently rose for about a year and a half; in each case, bitcoin prices rose sharply from their pre-cut value. half, ”he said.

“As demand for bitcoin has grown rapidly in recent months, the next halving event – a supply limiting event – could help jumpstart bitcoin’s upward trajectory, despite losses that have accumulated in recent weeks. “

Vecchio added that it “shouldn’t come as a surprise when more calls for ‘$ 100,000 bitcoin’ come out of the woods once the halving event is over.”

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