NEWSLETTER
Despite the challenging macroeconomic environment, the president of the Federal Reserve, Jerome Powell, has reviewed his position on <a target="_blank" href="https://www.coingecko.com/en/coins/bitcoin” target=”_blank” rel=”noopener nofollow”>bitcoinwhich has given investors cautious hope of cryptocurrencies.
Comparing bitcoin with gold during an appearance at the summit of New York Times, Powell characterized bad cryptography as a “speculative asset” instead of a direct competitor to the US dollar.
This is a significant deviation of its previous derogatory posture towards the largest cryptocurrency in the world, which has a market capitalization of approximately $ 1.4 billion.
Powell's changing point of view in bitcoin
The founder of Binance, Changpeng Zhao (CZ), quickly emphasized this development as “an improvement in the previous narrative”, indicating that industry leaders were aware of Powell's rhetorical change.
<blockquote class="twitter-tweet”>
That is an improvement in the previous narrative. Baby steps … https://t.co/4f95yebnp5
– CZ BNB (@cz_binance) <a target="_blank" href="https://twitter.com/cz_binance/status/1890679547546206467?ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>February 15, 2025
The specific characterization of bitcoin as “like gold alone … virtual … digital” by Powell implies a growing adoption of cryptocurrencies within traditional financial frameworks.
<blockquote class="twitter-tweet”>
What Jerome Powell thinks about bitcoin
bitcoin is digital gold. He is not here to replace the dollar, but a strong gold competitor. pic.twitter.com/awbeccq15i
– Kashif race (@Simplykashif) <a target="_blank" href="https://twitter.com/simplykashif/status/1890663950942872033?ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>February 15, 2025
In spite of this, he declared that bitcoin cannot challenge the supremacy of the dollar due to its highly volatile nature and its limited use as a payment method.
Economic restrictions and the challenging cryptographic panorama
The cryptocurrency market currently operates in a context of worrying economic indicators that threaten to delay the anticipated bull cycle.
In January, the producer price index (PPI) reached its highest level since February 2023 with 3.5%, while the Consumer Price Index (CPI) showed a 3% increase in inflation, marking its highest level since February 2023.
Despite these challenges, bitcoin has been remarkably resistant; In the main exchanges, 24 -hour commercial volumes have exceeded <a target="_blank" href="https://www.coinbase.com/price/bitcoin” target=”_blank” rel=”noopener nofollow”>$ 22 billion. The market value of the cryptocurrency market has increased to approximately $ 2.3 billion in the last two years as a result of a significant institutional investment.
Monetary policy decisions
Powell's comments on February 11 reaffirmed the dedication of the Federal Reserve to quantitative hardening (QT) while resisting the reimplementation of quantitative flexibility (QE) to the severe economic circumstances. This position has considerable ramifications for risk assets such as cryptocurrencies.
bitcoin still at a level of $ 96k
bitcoin sold above <a target="_blank" href="https://www.coingecko.com/en/coins/bitcoin” target=”_blank” rel=”noopener nofollow”>$ 96,000 At the time of this writing. It had moved between $ 94,000 and $ 95,000.
Outstanding image of Pexels, TrainingView graphics
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