US Federal Reserve Chair Jerome Powell has acknowledged Bitcoin’s potential as a “store of value” but rejected it as a competitor to the US dollar. This shift in stance has sparked renewed optimism among cryptocurrency investors. Despite recognizing Bitcoin’s store-of-value capabilities, Powell maintains that it is not viable as a payment method due to its high volatility.
The macroeconomic landscape also adds pressure on risk assets, including crypto. Rising inflation and the Fed’s stance on quantitative easing have led some to question whether the anticipated bull cycle has hit a roadblock. However, Powell’s commitment to quantitative tightening and his skepticism about renewed QE suggest that any policy shift is unlikely in the near term.
Powell’s evolving view of Bitcoin as a store of value continues to generate interest among investors, who are now speculating on how future monetary decisions might impact the digital asset landscape.
Source: https://ambcrypto.com/jerome-powell-acknowledges-bitcoin-as-digital-gold-baby-steps