A Visa executive is encouraging investors to “opt-out” of the Federal Reserve’s money-printing tactics with bitcoin while pointing to a new bullish indicator.
In a Tweet published August 27, Visa’s Senior Director of Public Policy Andy Yee blasted the Chair of the US Federal Reserve Jerome Powell for instituting policies that would devalue the dollar.
In a speech made earlier that day, Powell announced a major policy shift to “average inflation targeting” and allow dollar inflation to run higher than the standard 2 percent target before hiking interest rates.
Yee called Powell’s speech one “for the history books” and made a play on Winston Churchill’s famous quote by saying “never in the history of mankind was so much stolen from so many by so few.”
https://twitter.com/ahkyee/status/1298976526361214976
The US dollar currency index (DXY), which serves as a measure of the dollar’s value relative to a basket of foreign currencies, responded to Powell’s speech by plummeting on Thursday. While the DXY has been on a gradual decline since March and the start of the pandemic, the index fell to 92.28 in the aftermath of the Fed’s policy change.
Some analysts have pointed to the DXY as a bullish indicator for bitcoin and other “safe haven” assets, which benefit from investor insecurity over fiat.
Real Vision founder and CEO Raoul Pal took to Twitter to say that Powell’s “zero tolerance for deflation” would be good for gold and bitcoin.
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