Despite the hard macroeconomic environment, the chairman of the Federal Reserve Jerome Powell changed his position Bitcoinwho gave investors careful hope for cryptocurrencies.
Comparing Bitcoin to gold during the performance at the summit of the Dealbook Novel York Times, Powell characterized the flagship crypto as “speculative assets”, not Direct competitor to the American dollar.
This is a significant departure from its previous disregarding position towards the largest cryptocurrency in the world, which has a market capitalization of about $ 1.4 trillion.
The changing point of view of Powell on Bitcoin
The founder of Binance Changpeng Zhao (CZ) immediately emphasized this development as “improving the previous narrative”, indicating that industry leaders were aware of the rhetorical change of Powell.
This is an improvement in the previous narrative. Children’s steps … https://t.co/4f95ebnp5
– CZ 🔶 bnb (@cz_binance) February 15, 2025
The specific characteristics of Bitcoins as “like gold … virtual … Digital” Powell implies the growing reception of cryptocurrencies in conventional financial framework.
What Jerome Powell thinks about Bitcoin👇
Bitcoin is digital gold. There is no replacement of the dollar here, but a mighty competitor for gold. pic.twitter.com/awbecQ15i
– Kashif Raza (@Simplykashif) February 15, 2025
Despite this, he stated that Bitcoin is not able to question the dollar supremacy due to its highly unstable nature and confined apply as a payment method.
Economic restrictions and a hard cryptographic landscape
The cryptocurrency market is currently operating against the background of economic indicators that threaten to delay the anticipated bull cycle.
In January, the manufacturer’s price index (PPI) reached the highest level since February 2023. Consumer price indicator (CPI) showed a 3% boost in inflation, which means its highest level since February 2023.
Despite these challenges, Bitcoin was extremely resistant; In the case of the main exchanges, 24-hour trade volumes have $ 22 billion. The market value of the cryptocurrency market has increased to around USD 2.3 trillion over the past two years as a result of significant institutional investments.
Monetary policy decisions
On February 11, Powell’s comments confirmed the dedication of the Federal Reserve on quantitative exacerbation (QT), while based on re -implementation of quantitative alleviation (QE) to severe economic circumstances. This position has significant consequences of risk assets, such as cryptocurrencies.
Bitcoin still at the level of $ 96,000
Bitcoin sold above $ 96,000 At the time of writing this text. He moved from 94,000 to 95,000 USD.
A distinguished picture from Pexels, chart from TradingView
