- Dogecoin is symbolizing the capital market, which seems to be a bit frothy
- The traditional and crypto market has witnessed unexpected price trends since the beginning of this year
- Jerome Powell deemed that although the prices seem frothy, it has no effects on the monetary policies
Dogecoin seems to symbolize the capital market, as per Jerome Powell, the chairman of the United States Federal Reserve. In the current scenario, the meme-based cryptocurrency is found outperforming in the cryptosphere. According to the data from the CoinMarketCap, it is observed that since the year to date, DOGE has surged by more than 6000%. Following the scenario, Powell has deemed that the Dogecoin craze is a bit frothy in the capital market. Moreover, he mentioned that the US FED’s easy banking policy seems to have something to do with that.
Price frenzy in the shares and crypto market
Since the beginning of this year, several retail investors have enjoyed a wild ride. The financial world has witnessed a massive surge in the price of GameStop’s shares. On the other side, the cryptosphere has also witnessed how the price of Dogecoin is up by more than 6000% within a year.
On the other side, Coinbase, a major US-based digital assets exchange, went public. Since the exchange-listed on the exchange, currently, it has a combined value of both the New York Stock Exchange and Nasdaq.
Dogecoin has nothing with monetary policy
After the FED’s two day meeting, recently in a press conference, Brian Cheung from Yahoo Finance questioned Powell considering the price trends. Brian asked whether the price surges of assets like Dogecoin and GameStop’s shares are financial stability concerns from the FED’s perspective at this time.
The question mainly focused on the backdrop of low interest and easy monetary policies. Such issues are the reasons that sparked interest in speculative investments in DOGE and GameStop’s shares.
“Some of the asset prices are high. You are seeing things in the capital markets that are a bit frothy. That’s a fact,” Fed Chair Powell says in response to a question from @bcheungz. “The overall financial stability picture is mixed, but on balance it’s manageable.” pic.twitter.com/6ZbiFDIQmW
— Yahoo Finance (@YahooFinance) April 28, 2021
Following the question, Jerome replied that we could see the things in the capital market that are a bit frothy, which is a fact. Still, DOGE does have a few things with monetary policy. And also, the coin has a tremendous amount of connections with the vaccination and reopening of the economy.
Simultaneously, Powell highlighted that where the overall financial stability scene is entirely mixed up, still things are on balance. Hence, if the FED chairman highlighted such facts, it means that the situation is yet manageable.