Bitcoin whipsawed on Thursday after the Federal Reserve’s chairman signaled tolerance for high inflation, as expected.
- The leading cryptocurrency jumped from $11,400 to $11,594 in 20 minutes to 09:30 a.m. ET only to give up gains in the next few minutes. At press time, bitcoin is trading near $11,380, down nearly 1% on the day, according to CoinDesk's Bitcoin Price Index.
- The dollar index, which tracks the value of the greenback against majors, also faded the drop to 92.50 and now trades near 93.30.
- The negative correlation between the dollar and bitcoin has strengthened over the past few weeks.
- Federal Reserve Chairman Jerome Powell, while speaking at central bank's annual Jackson Hole event, said that the central bank will now be willing to allow inflation to run higher than the 2% target before raising interest rates.
Read more: Commentary: Fed Chair Jerome Powell Details Inflation Target Changes