Both stocks and Bitcoin fell after the Fed chairman warned of high inflation when he said it was no longer viewed as a “transition”. So read more on our latest bitcoin news today.

The Fed said today that inflation is no longer seen as a fad, and stocks and Bitcoin have both reacted badly to the news. Bitcoin suffered losses as the entire crypto and traditional markets appear to have been spooked by Fed chief Jerome Powell’s comments on inflation. Bitcoin fell to $ 56,245 during a U.S. Senate hearing, down 5% from $ 59,161 after the Fed chairman said inflation should not be viewed as temporary:

“We tend to use the word temporary to mean that it doesn’t leave a lasting mark in the form of higher inflation. I think maybe now is the right time to take that word back and try to explain more clearly what we mean. “

The Dow Jones Industrial Average fell 1.8% after the comments, while the S&P 500 fell 76.25 points, or 1.6%. The largest cryptocurrency by market cap has since rebounded, hitting $ 57,433 at press time, while it still held 2% last day, according to CoinGEcko data. Powell added that the Omicron variant of the COVID-19 virus carries even greater risks to employment and economic activity, and heightened uncertainty about inflation appears to have had a negative impact. Although bitcoin is viewed as independent of traditional markets, it has fallen along with stocks, according to Powell’s comments, a sign that the cryptocurrency continues to correlate with the stock market.

Bitcoin is often viewed by its proponents as a hedge against inflation because, like gold, unlike the US dollar, it has a limited supply of 21 million coins. Crypto markets are once again reacting poorly to signs that inflation may persist in the US economy, suggesting that BTC and other cryptocurrencies may be too risky for investors in the near future.

As recently reported, Bitcoin plunged several thousand dollars to a six-week low below $ 55,000 in a matter of hours, and most of the crypto market experienced an increasingly extreme crash, bringing the amount of Bitcoin liquidation to $ 300 million. If you also want to check the real-time value of bitcoin, be sure to check out our bitcoin price calculator.