- Federal Reserve Chair Jerome Powell says bank rules will go easy on Bitcoin.
- With crypto popularity growing he believes rules will be loosened.
- Fair regulations could unlock massive potential for the crypto industry.
The highly-anticipated Fed Chair Jerome Powell’s talk was expected to have an impact on financial markets. In fact, many hoped to hear of a Fed rate cut announcement, which did not come. Instead, Federal Reserve Chair Jerome Powell says bank rules on Bitcoin and crypto will be loosened. This, paired with other political and market movements led to a massive crash in the stock market.
Federal Reserve Chair Jerome Powell Makes a Statement
Yesterday, the crypto market was in a tizzy as it hoped the Fed would announce a rate cut. The late time a rate cut was announced, the price of Bitcoin (BTC) went up significantly. As for why they expected a rate cut from the Fed, this is because of the pressure Trump has been trying to put on the Fed to push them to announce a greater rate cut. Announcing a greater rate cut would mean that the US debt would reduce significantly.
Growing inflation has led many financial experts and economic leaders to expect a much greater Depression to come for the USA. While many advise putting their wealth in gold, silver, and Bitcoin, Trump is denying a depression or an inflation. He believes that if he can pressure the Fed, an independent entity, to announce a rate cut then all thoughts of inflation and a depression will disappear.
Thus, to pressure the Fed, Trump launched a tariff war. He began by targeting a handful of countries and then went on to target almost every nation he could think of, including an island only inhabited by penguins. This led to trillions being wiped from the crypto and US stock market. Soon after this, he announced a suspension on most tariffs except those on China which he increased. China retaliated with a clever plan of its own.
After all this, the Fed was expected to announce a rate cut, which it did not. Instead Federal Reserve Chair Jerome Powell announced that with crypto and stablecoins becoming more mainstream, there will instead be a loosening of bank rules on crypto-related assets could be very bullish for the crypto market. He believes there is greater potential for the industry if a legal framework would support its growth.
$1.5 Trillion Wiped From Stock Market
As a response, the crypto market did not phase any greater liquidations after Jerome Powell’s talk. Instead, a massive crash hit the stock market, with over $1.5 trillion wiped out. The analyst in the post does not know how this will affect the crypto market and hopes to see bullish action there instead of another brutal dip.
