The Federal Reserve Chair returns Bitcoin as “digital gold” – a turning point for encryption?
Despite the difficult macroeconomic environment, Federal Reserve Chairman Jerome Powell reviewed his position BitcoinWhich gave investors with cautious hope in encrypted currencies.
Bitcoin comparison with gold while appearing at the New York Times Dealbook, Powell described the main encryption as “speculative assets” instead of a Direct competitor To the US dollar.
This is a great departure from his previous position rejecting the largest cryptocurrency in the world, which cost about $ 1.4 trillion.
Powell’s changing point of view on Bitcoin
The founder of the Binance Changpeng Zhao (CZ) immediately confirmed this development as “improved in the previous narration”, indicating that industrial leaders were aware of the rhetorical transformation of height.
This improved in the previous narration. Child steps … https://t.co/4f95ybnp5
– CZ 🔶 bnb (CZ_Binance) February 15, 2025
The specific description of Bitcoin as “just like gold … default … digital” from Powell means increasing dependence on encrypted currencies in traditional financial frameworks.
What Jerome Powell thinks about Bitcoin👇
Bitcoin is digital gold. Not here to replace the dollar, but a strong gold competitor. pic.twitter.com/awbeccq15i
– Kashif Raza (Simplykashif) February 15, 2025
Nevertheless, it was stated that Bitcoin is unable to challenge the superiority of the dollar because of its very volatile nature and its limited use as a means of payment.
Economic restrictions and highly challenging landscapes
The cryptocurrency market currently operates against the background of economic indicators that threaten to delay the expected bull cycle.
In January, the PPI price index (PPI) has reached its highest level since February 2023 by 3.5 %, while Consumer price index (CPI) showed a 3 % increase in inflation, which represents its highest level since February 2023.
Despite these challenges, Bitcoin was noticeably flexible; In the main exchanges, trade volumes topped 24 hours 22 billion dollars. The market value of the cryptocurrency market has increased to about $ 2.3 trillion over the past two years as a result of a major institutional investment.
Monetary policy decisions
Powell’s comments confirmed on February 11 again the dedication of the Federal Reserve in quantitative tightening (QT) with the resistance to the resistance to the re -dilution (QE) even under severe economic conditions. This position has great repercussions on risk origins such as cryptocurrencies.
Bitcoin is still at 96 thousand dollars
Bitcoin was selling above 96,000 dollars At the time of writing this report. It was moving between 94,000 dollars and 95,000 dollars.
Distinctive photo of Pexels, tradingView graph
