Is the Fed to blame for the Bitcoin crash? – financial magazine

The head of the Fed met in May with the CEO of the largest American cryptocurrency exchange Coinbase before the collapse of Bitcoin. Many experts also linked the previous drop in bitcoin since the end of 2017 with the actions of the American Central Bank.

Bitcoin has lost all correlation with the US stock market since around mid-May. Since May 13, the S&P 500 stock index has risen by 7%, then the bitcoin rate has fallen by half.

On May 11, Fed Chairman Jerome Powell met with Coinbase founder Brian Armstrong, according to Powell’s recently published schedule of meetings for May. Coinbase was listed on the Nasdaq exchange a month earlier.

It is noteworthy that Powell met with Armstrong in person at that time, and not remotely through Zoom, as most of his meetings take place. Also present at that meeting was former White House speaker Paul Ryan. What they talked about is unknown, writes ttrcoin with reference to ZeroHedge.

The next day, May 12, the head of the Fed met with the former chairman of the Commodity Futures Trading Commission, Christopher Giancarlo. On the schedule, he is listed as head of a private initiative to develop the digital dollar.

Armstrong tweeted about his trip to Washington on May 14, but did not say a word about the conversation with Powell. According to him, during the week he met with “members of Congress and heads of various federal departments.”

One way or another, but May 12 is exactly the day when bitcoin began a sharp decline from $ 58,000, ending up in eight days about $ 30,000. The decline was then associated with Elon Musk’s tweet on May 12 about Tesla stopping accepting bitcoins.

Nevertheless, in light of the newly discovered facts, market participants are beginning to wonder about what the head of the Fed said to the CEO of Coinbase, after which Bitcoin experienced its largest collapse since December 2017.

Founded in 2012, Coinbase crypto exchange is used by over 56 million individuals from 100 countries. As of the end of March, assets in the amount of $ 223 billion were traded on it.

The continued growth of cryptocurrencies could be dangerous for Coinbase in that speculators holding assets for the sake of further growth do not make transactions, which deprives the exchange of trading volumes, and therefore commissions.

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