The cryptocurrency market saw sharp drops after Jerome Powell’s speech in Jackson Hole. Market players are trying to understand why this collapse occurred just as it started to recover. Cardano inventor Charles Hoskinson shared his views on the reason for the collapse of the crypto market.
Hard salvos from Cardano inventor to Powell!
cryptocoin.com As you follow, the crypto market is dominated by strong waves. The market made a sharp comeback amid the relief rally led by the leading crypto Bitcoin. Traders and investors are trying to understand why this is the case. Citing a CNBC report, Cardano founder Charles Hoskinson blamed Fed Chairman Jerome Powell’s recent hawkish speech in Jackson Hole. Hoskinson has revealed his views on another brutal red day in the markets.
Another brutal red day in the markets. People wondering why can refer to this https://t.co/FCNVWWLtdB
We are witnessing what @RonPaul said years ago. The Fed has two options. Kill the economy with high interest rates or destroy the currency with inflation. (1/2)— Charles Hoskinson (@IOHK_Charles) August 26, 2022
On Friday, Fed Chairman Jerome Powell promised that the central bank would “strongly use its tools” to fight inflation. After that, all the markets were turned upside down. In his annual Jackson Hole policy speech, Powell stressed that higher interest rates will likely “continue for a while.” He also noted that “historical records strongly warn against the policy of premature easing.”
The comments come amid indications that inflation may have peaked, but has yet to decline sharply. As Powell noted, the Fed will not back down with a month or two of data. Cardano inventor Charles Hoskinson commented:
We are witnessing what Ron Paul said years ago. The Fed has two options. Either kill the economy with high interest rates or destroy the currency with inflation. Cryptocurrencies are the way out of this madness. Central banks cannot be trusted with monetary policy. They are working for the political process. They gave two generations of politicians a blank check that we now have to close. It will get worse before it gets better.
ADA price dropped sharply
Since Jerome Powell’s statements, Bitcoin has lost more than 8%. It also dragged the entire cryptocurrency market with it. The biggest cryptocurrencies have lost almost all of their latest gains. The market sentiment has once again been quite bearish. At the same time, battered Cardano (ADA) fell to $0.447.
When asked about ADA’s poor performance, Cardano founder Charles Hoskinson said that cryptocurrencies have entered a bear market. However, the Cardano network continues to expand despite the price stagnation. Currently, 1,075 projects are being built in Cardano, while 93 projects have recently been launched in Cardano. Cardano native tokens are at 5.9 million with a mintage policy of 60,468, while Plutus scripts are currently at 3,117. Also, the number of Github commits was 3,207.
