A few days earlier, when the new bill was released in the Parliament by US President Joe Biden, the bitcoin prices started to decline. The cryptocurrency market analysts believe that it is all because of the new bill that the American Parliament is about to present. The main concern for the cryptocurrency investors and brokers in the markets of America is that they will have to pay the complete records to the Federal reserve authorities for all the transactions they make in the picture point. Because of this, the anonymity they can get in cryptocurrency transactions is going to diminish. They will be held responsible for every action and move of the cryptocurrency market. It is not very welcoming information for the brokers dealing In digital coins from the United States. After that, when the American President gave the post of Federal Reserve chairman to Jerome Powell, bitcoin prices increased by 5.3% and reached $59,550.
He is nominated for the same post for the second term. For the next time, he will be nominated for the Senate for confirmation. It was none other than Powell who directed the central bank of the United States throughout the whole Covid 19 pandemic. His mind is classic, and therefore, he has a lot of strategies working in and out all the time. Due to his helping hand during the COVID-19 crisis in the United States of America, he was a well-suited candidate for the chairmanship of the Federal reserve for the second term. For the first time, he decided to implement the unprecedented monetary stimulus. According to the reports, the President of the United States of America announced on Monday that the Governor would be given the post of Federal Reserve chairman. He decided not to go with the plan, and the Governor was given the vice-chairman of the board of governors.
In a press conference held in the United States, the United States of America President said that we cannot return to the same place where we were before the COVID-19 pandemic a ride. It is time that we build our economy better than ever before, and he also mentioned that he is very confident about the chairmanship of Powell. He said that he would work with his best knowledge to keep inflation low, deliver full employment and keep the prices of everything stable throughout his term. Also, he believes that Jerome Powell is going to help the economy become stronger like never before. The President also gave appraisal for the decisive actions that were undertaken when the pandemic started. Those actions also included purchases of $120 million monthly bonds. The strategy also included cutting down the interest rates to near zero and multiple lending programmers.
As the interest rates are lower because of the recent COVID-19 pandemic, the United States government is looking forward to correcting the situation in the near time. It has addressed in a press conference that it will present its massive policy that will be the ultimate clampdown towards the rising inflation in late spring or early summer in the year2022. The authority is also mentioned that after the plan is implemented, interest rates will start increasing again. According to the very well-known economist Morgan Stanley, the federation will wait until the first quarter of 2023 to increase the interest. The unemployment rate in the United States of America is about to decrease to 3.6% by the end of 2022. Hence, more people will have purchasing power in their hands and can afford finances even at higher interest rates.
To deal with the ever-increasing increase of cryptocurrencies, the United States of America is looking forward to keeping a record of transactions on a large scale. Also, it will tap the transactions of small scale in cryptocurrencies like bitcoin because they are valuable. The new bill that the United States government will bring up has made regulations for the cryptocurrency brokers dealing on bitcoin circuit. We will have to report every cryptocurrency transactions they make in bitcoins to charge tax.
Bitcoin is around $56,000, and the second-best cryptocurrency, Ether, is above $4000. To date, many investors are not withdrawing money from bitcoin and Ethereum, but they are consolidating these coins for the future bull market.