🔸The Federal Reserve Chairman, Jerome Powell, announced that the United States economy is strong and inflation is approaching the 2% target, although it remains somewhat high. He also noted that the current Federal Reserve policy is well-suited to risks and uncertainties, and that it will not change the inflation target, but will be based on actual data.


🔸Impact on cryptocurrencies:
Political stability and predictability:
🔸Positive Impact: Confidence that inflation is close to the target and that the economy remains strong can motivate investors to seek alternative investments, including cryptocurrencies, as a way to diversify their portfolio. In addition, stable monetary policy can reduce market volatility, indirectly benefiting digital assets.
Inflation Expectations:
🔸Possible negative impact: If inflation continues to exceed the targeted goal, this could generate expectations of further monetary tightening, which could increase Treasury bond yields and strengthen the US dollar, typically having a negative impact on cryptocurrency prices.
🔸 Market response to policy:
🔸 Impact of investment sentiment: Statements that policy may remain cautious if inflation does not approach 2% compared to stability expectations or even tighten policy to temporarily reduce interest in high-risk assets, including cryptocurrencies. However, if the labor market weakens or inflation decreases faster than expected, this could lead to policy easing, which could be positive for the cryptocurrency market.
🔸Long-term outlook:
🔸 Potential growth: If the Federal Reserve adheres to the current policy and the US economy continues to show strength, this could contribute to increasing public interest in innovative technology and assets, including cryptocurrencies. Especially if the market interprets Powell's statements as a signal of stability and political expectations.
🔸Conclusion:
Jerome Powell's statement could have a dual impact on the cryptocurrency market. In the short term, this could generate some uncertainty and even a decrease in prices if investors expect stricter policies to control inflation. However, in the long term, if the Federal Reserve's policy strengthens stability and economic growth, this could create favorable conditions to increase interest in cryptocurrencies as an asset class.
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