Charles Hoskinson, the founder of Cardano, blames the recent “awful red day in the markets” on Fed Chair Jerome Powell’s hawkish speech in Jackson Hole, according to a CNBC article.
The central bank will “use its instruments vigorously” to combat inflation, which is still hanging around its highest level in more than 40 years, Fed Chairman Jerome Powell promised, sending the markets into a tailspin on Friday. Powell stressed that higher interest rates are likely to continue “for some time, and the historical record strongly cautions against premature relaxing policy” in his yearly Jackson Hole policy speech.
The remarks coincide with signals that suggest inflation may have peaked but is still not definitely decreasing. The Fed won’t be swayed by a month or two of data, as Powell said.
Hoskinson further stated,
“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.”
The Cardano founder continued by stating that cryptocurrency is the solution to this craziness. According to him, o ne shouldn’t trust central banks to make sound monetary policy, for they support politics and handed two generations of elected officials a blank check that we now have to pay back. He ended on the note that before things improve, they are going to get worse.
Cardano’s ADA drop of 8%
Since Powell’s comments, Bitcoin has decreased by more than 8%, wiping out the entire cryptocurrency market. All of the most recent gains made by the biggest cryptocurrencies were lost, and the market attitude again became very gloomy.
Another badly hit cryptocurrency, Cardano (ADA), dropped 8% to trade at $0.447 at the time of publication.
Charles Hoskinson, the founder of Cardano, claimed that cryptocurrencies had entered a bear market when asked about the weak performance of the native ADA currency. Despite the price slump, Cardano’s network is still growing.
93 projects have just been launched on Cardano, while 1,075 projects are currently under construction on the platform. Plutus scripts currently number 3,117, whereas Cardano native tokens currently stand at 5.9 million with 60,468 minting policies. Additionally, 3,207 commits were made on Github.
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