Journalist
Posted:
- Powell recognizes Bitcoin as a store of value but rejects it as a dollar competition.
- Rising inflation and the position of the FED compared to QE exerted pressure on the next Bitcoin rally.
US Federal Reserve Chairman Jerome Powell’s shifting attitude on Bitcoin [BTC] Has renewed optimism on the crypto market.
In addition, Binance [BNB] Founder Changpeng Zhao (CZ) recently emphasized Powell’s evolving perspective and marked a shift from his rather cautious approach to the BTC.
CZ praises Powell’s attitude in attitude
Speaking with Andrew Ross Sorkin on the New York Times Dealbook Summit, Said Powell”
“People use Bitcoin as a speculatively active, right? It’s like gold. It is just like gold. It’s virtual. It’s digital. People do not use it as a form of payment or as a store of value. It is very volatile. It is not a competitor for the dollar. It is really a competitor for gold. “
See this attitude in attitude, Said zhao”
“That is an improvement in the previous story. Baby steps … “
Despite the recognition of Powell from Bitcoin’s storage plate potential, he claims that BTC cannot compete with the US dollar due to the high volatility and limited acceptance as a payment method.
Current macro -economic condition
In the meantime, the wider macro -economic landscape has added further pressure for risk activa, including crypto.
The latest report of the US Consumer Price Index (CPI) showed in January that inflation rose to 3%, while the producer Price Index (PPI) rose to 3.5%, which marked the highest level since February 2023.
With the assembly of the inflationary pressure and the Federal Reserve that keeps the rate reduction, the expected crypto -bull cycle apparently affected a roadblock.
However, as the week ended, the crypto prices showed signs of resilience, which fueled speculation on potential marketbounds.
What hints for Bitcoin?
Powell’s fixed attitude against renewed quantitative relaxation (QE) and continuous dedication to quantitative tightening (QT) has even intensified the discussions within the crypto community.
His testimony on 11 February reinforced that the FED would only consider QE under extreme circumstances, such as nearly-zero interest rates, which makes a short-term policy shift unlikely.
Although some people consider this to be a cautious approach to maintaining economic stability, others fear that it could extend the uncertainty surrounding the next large rally of Bitcoin.
With inflation still above the goal and interest rate reduction of the table, the cryptomarkt stands for a challenging road that lies in front of us.
However, the evolving representation of Powell on Bitcoin if a store of value remains optimism, which means that investors speculate about how future monetary decisions can form the landscape of digital assets.
