[Bitcoin Now] Hesitating at 56 Million Won... The Waning Powell Effect

Jack Dorsey, Twitter CEO, Hints at Developing Decentralized Cryptocurrency Exchange

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Gong Byung-sun] The leading cryptocurrency Bitcoin is stalling in the 56 million KRW range. The effect of remarks by Jerome Powell, Chairman of the U.S. Federal Reserve (Fed), which had driven Bitcoin's rebound by dismissing recent concerns about early interest rate hikes, appears to be fading.

According to the domestic cryptocurrency exchange Upbit, as of 2:45 PM on the 30th, Bitcoin recorded 56.67 million KRW, down 1.04% compared to the previous day. Bitcoin had risen to 58 million KRW the day before but has since been on a downward trend. However, it has not fallen below the 56 million KRW level.

This is interpreted as the Powell effect waning. On the 27th (local time), Chairman Powell said at the Jackson Hole Annual Symposium hosted by the Federal Reserve Bank of Kansas City, "The timing and pace of asset purchase tapering to be implemented within this year do not signal the timing of interest rate hikes," and "Even if the Fed begins tapering, it should not be interpreted as a signal for interest rate hikes."

As a result, cryptocurrency investors perceived Powell's remarks as a commitment to maintaining an expansionary monetary policy, leading to Bitcoin's rebound. According to the cryptocurrency specialized media Cointelegraph on the 28th, Bitcoin rose by $1,500 (approximately 1.74 million KRW) within an hour after Powell's remarks. On that day, Bitcoin rebounded 3.94% and continued its upward trend for two consecutive days.

Meanwhile, Doshi CEO announced plans to create an open platform for decentralized cryptocurrency exchanges. On the 28th, he stated on Twitter, "We have set the direction for Square's open-source platform business TBD," and "We will create a decentralized platform for Bitcoin trading."

Furthermore, Mike Brock, head of Square's TBD project, pointed out, "There are vulnerabilities in the current cryptocurrency trading system," and "To obtain Bitcoin now, one must rely on centralized custody models such as Cash App or Coinbase." He added, "We hope the platform developed by Square will operate as a completely open-source and Bitcoin-based system without any underlying control or governance model managed by TBD."

This content was produced with the assistance of AI translation services.