{"id":374528,"date":"2021-11-30T23:30:00","date_gmt":"2021-11-30T20:30:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/bitcoin-stocks-and-commodities-correct-after-fed-chair-mentions-policy-change\/"},"modified":"2021-11-30T23:30:00","modified_gmt":"2021-11-30T20:30:00","slug":"bitcoin-stocks-and-commodities-correct-after-fed-chair-mentions-policy-change","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/bitcoin-stocks-and-commodities-correct-after-fed-chair-mentions-policy-change\/","title":{"rendered":"# Bitcoin, stocks and commodities correct after Fed chair mentions policy change"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3dd20f08dc4\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3dd20f08dc4\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-stocks-and-commodities-correct-after-fed-chair-mentions-policy-change\/#Stocks_and_commodities_take_a_hit\" >Stocks and commodities take a hit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-stocks-and-commodities-correct-after-fed-chair-mentions-policy-change\/#The_Fed_%E2%80%9Cbehaves_in_a_binary_way%E2%80%9D\" >The Fed &#8220;behaves in a binary way&#8221;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-stocks-and-commodities-correct-after-fed-chair-mentions-policy-change\/#Its_no_longer_%E2%80%9Ctransitory_inflation%E2%80%9D\" >It&#8217;s no longer &#8220;transitory inflation&#8221;<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Bitcoin, stocks and commodities correct after Fed chair mentions policy change <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>Global financial market took a hit on Nov. 30 after comments from U.S. Federal Reserve Chair Jerome Powell hinted that inflation and the Omicron Covid-19 variant are growing threats and that the bank&#8217;s easy money policies could end sooner than anticipated.<\/p>\n<p>Prior to Powell&#8217;s comments, Bitcoin (BTC) had been on the rise and the digital asset had rallied 6% from a low of $55,840 in the early trading hours on Nov. 30 to an intraday high at $59,200, but the price was hammered back below $57,000 after the Fed&#8217;s remarks. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-11\/b78421cb-3fd3-4312-a6e2-d3b9e76209ce.png\"><figcaption style=\"text-align: center;\"><em>BTC\/USDT 4-hour chart. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>At the time of writing, Bitcoin has managed to climb back to $58,000 but a <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/watch-movies-tv-seriess\/\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Watch Movies &amp; TV Series\" target=\"_blank\" rel=\"noopener\">series<\/a> of technical indicators signal that traders are not confident about BTC&#8217;s next move. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"Stocks_and_commodities_take_a_hit\"><\/span>Stocks and commodities take a hit<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>It wasn\u2019t just Bitcoin that was hard hit by the Fed&#8217;s comments. According to\u00a0economist and CryptoQuant analyst <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/JanWues\/status\/1465714011513802755\">Jan Wuestenfeld<\/a>, the dollar index (DXY) increased while the DOW, gold and other equities indexes pulled back.\u00a0<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-11\/acd2c14b-fdcd-4bd0-b20f-9312332cbe3c.jpg\"><figcaption style=\"text-align: center;\"><em>DXY vs. Gold vs. BTC\/USD vs. SPX. Source: <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a><\/em><\/figcaption><\/figure>\n<p>Wuestenfeld said, <\/p>\n<blockquote><p>\u201cUS dollar index <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>reciating on Powell remarks that the FED might speed up taper (no matter how believable). Everything else going down. Gold included.\u201d <\/p><\/blockquote>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Vladimir Putin says cryptocurrencies &#8216;bear high risks&#8217;<\/em><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_Fed_%E2%80%9Cbehaves_in_a_binary_way%E2%80%9D\"><\/span>The Fed &#8220;behaves in a binary way&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Deeper insight into the actions from the Fed was provided by market analyst and former treasury employee Nik Bhatia, who highlighted the fact that the Fed \u201cdoesn\u2019t have the ability to react to dynamic conditions\u201d and instead \u201cbehaves in a binary way.\u201d<\/p>\n<p>Bhatia said, <\/p>\n<blockquote><p>\u201cIf things are going well, it can tighten policy. If the economy is in trouble, it eases policy.\u201d<\/p><\/blockquote>\n<p>According to Bhatia, \u201cinflation is running hot in the United States\u201d with \u201cheadline statistics pointing to multi-decade high increases in aggregate price levels.\u201d <\/p>\n<p>At the same time, the Fed has implemented \u201ca monetary policy at essentially the easiest it has ever been,\u201d leading Bhatia to caution that \u201cwith inflation waking up, this will soon come to an end.\u201d<\/p>\n<p>Bhatia said, <\/p>\n<blockquote><p>\u201cThe Fed is clearly heading into a policy error in which it tightens policy despite longer-term growth and inflation expectations coming down, due to tighter monetary policy itself (that\u2019s why it\u2019s called policy error).\u201d<\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"Its_no_longer_%E2%80%9Ctransitory_inflation%E2%80%9D\"><\/span>It&#8217;s no longer &#8220;transitory inflation&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Interstingly, Powell&#8217;s comments acknowledged that the year-long mantra of \u201ctransitory inflation\u201d is now coming to an end, with the Federal Reserve chair suggesting that it&#8217;s time to \u201cretire\u201d the transitory narrative.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Federal Reserve Chairman Jerome Powell just suggested that we stop using the word &#8220;transitory&#8221; when speaking about inflation.<\/p>\n<p>\u201cI think it\u2019s probably a good time to retire that word and try to explain more clearly what we mean.\u201d<\/p>\n<p>It was never transitory and everyone knew that.<\/p>\n<p>\u2014 Pomp  (@APompliano) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/APompliano\/status\/1465707348064804872?ref_src=twsrc%5Etfw\">November 30, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>While it\u2019s refreshing to see a bit more honesty coming from the Fed, cryptocurrency pundit Anthony Pompliano pointed out tha the average person knew all along that the inflation was anything but \u201ctransitory\u201d in nature and will likely remain an issue well into 2022. <\/p>\n<p>The overall cryptocurrency market cap now stands at $2.638 trillion and Bitcoin\u2019s dominance rate is 41.2%.<\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. 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