Despite the challenging macroeconomic environment, the Federal Reserve Chairman Jerome Powell has revised his attitude on BitcoinWhich has given investors gently hope for Cryptocurrencies.
Compare Bitcoin with gold during a performance on the New York Times Dealbook Summit, Powell characterized the Flagship Crupto as a “speculative asset” rather than a Direct competitor to the US dollar.
This is a significant deviation from his previous rejection against the world’s largest Cryptocurrency, which has a market value of approximately $ 1.4 trillion.
Powell’s altered point of view on bitcoin
Binance founder Changpeng Zhao (CZ) immediately emphasized this development as “an improvement in the previous story”, indicating that industry leaders were aware of Powell’s rhetorical change.
It is an improvement in the previous story. Baby steps … https://t.co/4f95yebnp5
– cz 🔶 bnb (@cz_binance) February 15, 2025
The specific characterization of bitcoin as “as only gold … virtual … digital” by Powell means a growing assumption of cryptocurrencies within traditional financial frameworks.
What Jerome Powell thinks about bitcoin👇
Bitcoin is digital gold. It is not here to replace the dollar, but a strong competitor to gold. pic.twitter.com/awbeccq15i
– Kashif Raza (@simplykashif) February 15, 2025
Despite this, he stated that Bitcoin cannot challenge the dollar’s superiority because of its very volatile nature and its limited use as a payment method.
Economic restrictions and the challenging crypto landscape
The Cryptocurrency market currently operates on a background of the economic indicators that threaten to delay the expected bull cycle.
In January, the producer price index (PPI) reached its highest level since February 2023 to 3.5%, while Consumer Price Index (CPI) showed an increase of 3% in inflation and marked its highest level since February 2023.
Despite these challenges, Bitcoin has been remarkably resistant; On major exchanges, 24-hour trading volumes have topped $ 22 billion. The market value of the Cryptocurrency market has increased to approximately $ 2.3 trillion over the past two years as a result of significant institutional investments.
Monetary policy decisions
Powell’s comments on February 11, the Federal Reserve confirmed the commitment to quantitative tightening (QT) while resisting the re -implementation of quantitative relief (QE) until under serious financial circumstances. This position has significant consequences for risk resources such as crypto courses.
Bitcoin still at $ 96K level
Bitcoin was sold above $ 96,000 At the time of this writing. It had moved between $ 94,000 and $ 95,000.
Image from Pexels, Chart from TradingView
