美联储主席

Recently, the market liquidity is really poor, #BTC feels like it hasn't hit the bottom yet.

This morning I saw the news that Trump wants to replace #美联储主席 and is preparing to inject liquidity.
If this really happens and the expectation of liquidity injection materializes, then BTC is likely to soar afterwards.

But for now, in the short term, I am still bearish,
while I remain bullish in the long term.

The current market pricing of the Fed's policy shift tends to be rational, but potential risks still exist. On the one hand, if the CPI data continues the trend of slowing down inflation (such as the core CPI exceeding 0.3% month-on-month), coupled with Powell's reaffirmation of the "data-dependent" stance, it may further suppress the expectation of interest rate cuts, push the US bond yields and the US dollar to strengthen simultaneously, and risk assets may face short-term adjustment pressure.

On the other hand, there is a contradiction between economic elasticity and policy lag effect: despite the robust employment market, the suppression of high interest rates on the real economy (such as commercial real estate and consumer credit) may gradually emerge. If economic data weakens in the second half of the year, the Fed's "patient" stance may be forced to loosen, and the market may then re-game the policy turning point. Investors are advised to pay attention to marginal changes in inflation data and Fed wording during fluctuations, and be wary of asset price revaluations caused by expectation gaps. #美联储主席

2.11 Evening Key Financial Data
Key Focus. Federal Reserve Chairman Powell delivers semiannual monetary policy

🛡️Powell Calls for Stricter Cryptocurrency Regulation, Warns Banks Not to 'Overly Avoid Risk'

On January 29, Federal Reserve Chairman Powell called for stronger regulation of cryptocurrencies at a press conference. Powell stated that it would be beneficial if cryptocurrencies had more robust regulatory bodies. He also mentioned that Congress and the Federal Reserve have been working to address this issue.

Powell further noted that the Federal Reserve has spent a lot of time collaborating with the House Financial Services Committee, which has been very constructive for Congress. He made it clear that while the Federal Reserve supports innovation in cryptocurrencies, banks should not close accounts of legitimate customers due to excessive risk aversion.

Chairman Powell also mentioned that banks are fully capable of providing services to cryptocurrency clients, but since the cryptocurrency field is relatively new, the barriers to entry for related activities might be slightly higher. He pointed out that individual investors need stronger protective measures because the risks associated with cryptocurrencies may not yet be fully understood. He compared cryptocurrencies to stocks and mutual funds, suggesting that similar consumer protection mechanisms should be adopted to safeguard investors' rights.

Additionally, during the first Federal Open Market Committee meeting since the Trump administration took office, Powell stated that concerns over "de-banking" have risen to the highest levels of government. Powell remarked that as long as banks understand and can manage risks, and are safe and reliable, they are fully capable of providing cryptocurrency services to customers.

He also avoided directly responding to recent comments or actions from Trump in the past few weeks. He stated that he had “no contact” with the new president and noted that differences would harm the credibility of the Federal Reserve.

More economic data is expected to be released this week, including the fourth quarter GDP growth annualized estimate to be published on Thursday, while the December Core Personal Consumption Expenditures (PCE) report will be released on Friday.

Meanwhile, during the Asian trading session on Thursday morning, the cryptocurrency market saw a slight increase, with Bitcoin leading the way and rising above $105,000.

💬 What do you think of Chairman Powell's remarks? Will the future of cryptocurrencies change as a result? Do you think stronger regulation is a good thing or a bad thing? Leave your thoughts in the comments!