Federal Reserve Chairman Jerome Powell described the Dogecoin market turmoil as “a bit of a bubble” at a financial markets press conference. According to him, policies to increase the money supply may have had such consequences.
to the the report Asked if something like a GameStop stock or the Dogecoin market would cause financial instability, CoinDesk told a news conference:
You are witnessing events in the financial markets that are somewhat bubbling, and this is a fact. I am not saying that these issues have anything to do with money supply policies, but it should not be forgotten that vaccination and economic openness also have a huge impact on these events.
The question was to determine whether there was a link between low interest rates, higher money supply policies and rising profits in markets such as the Dogecoin market and GameStop stock prices.
As the corona continued to spread around the world, many central banks began printing more money so that more money could enter the corona-damaged economy. This also affected the digital currency market and, according to many, pushed up the price of these currencies.
However, Powell is optimistic about the US approach to economic opening. According to him, large banks with large investments and low investment risks of financial institutions, cause this optimism. “It simply came to our notice then.
One thing that has had a huge impact on the development of markets in recent months is moving away from the dark winter and entering a period in which we are witnessing a faster vaccination process and economic opening.