Fed Reserve Chair Jerome Powell Says DOGE Maybe "Frothy"

by in Cryptocurrency News

Jerome Powell about Dogecoin

Fed Reserve head Jerome Powell was asked about his opinion about GameStop stock and Dogecoin's growth at the time of a press conference hold on April 28.

Related: Elon Musk Calls Himself Dogefather, The Coin Surges

The subject was if the surge is connected with low rates and simple monetary strategy and how it can influence financial stability.

Powel finds there are aspects in the capital markets that may be "frothy". According to him, monetary policy plays its role, but also vaccinating and economic recovery have huge impacts.

Saying that the market is "frothy" means that the cost of the asset is higher than its intrinsic value or actual worth. Froth can turn into a bubble which means a sudden crash.

Powell mentioned that citizens are gradually getting back to the habits they had before the pandemic.

Meanwhile, the demand for Dogecoin continues to be high. DOGE comes seventh in terms of the market cap which stands at over $40.6 billion. Over the previous 30 days, its price is up by 469%. Currently, Dogecoin trades at around $0.31.