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Janet Yellen says bitcoin is a highly speculative asset — but the Fed played a key role in its rise





A general view of the Bitcoin booth at the 2015 International CES at the Las Vegas Convention Center on January 8, 2015 in Las Vegas, Nevada. CES, the world's largest annual consumer technology trade show, runs through January 9 and is expected to feature 3,600 exhibitors showing off their latest products and services to about 150,000 attendees.

  • Bitcoin came into existence in 2009 in part as a response to fears about financial intermediation and banking following the financial crisis of 2008.
  • Aggressive rate cuts from the Federal Reserve and other central banks sparked fears, which proved unfounded, of high inflation that would sharply devalue major currencies.
  • More recently, market liquidity generated by a low interest rate environment made its way into bitcoin, some analysts say.

It’s a testament to the ferocity of the recent rally in bitcoin that Federal Reserve Chair Janet Yellen was asked about it multiple times during her last press conference as central bank chair.

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Source:: BusinessInsider.Com

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