Jerome Powell, the Chairman of the U.S. Federal Reserve, indicated a possible change in monetary policy, which could affect financial markets, including the cryptocurrency market. Here are some key points ¹:
- *Change in monetary policy*: Powell indicated that the time has come to change monetary policy, which could mean a rate cut in September.
- *Impact on cryptocurrencies*: This potential shift in monetary policy could have a positive impact on the cryptocurrency market, as a rate cut could lead to increased liquidity in the market and higher demand for high-risk assets.
- *Rise in cryptocurrency prices*: Following Powell's statements, Bitcoin surged to nearly $104,000, boosting optimism for further increases.
- *Study on issuing a digital currency*: The United States is working on studying the issuance of a digital currency, and Powell said: "We are actively working to evaluate the possibility of issuing a central bank digital currency."
- *Powell's stance on cryptocurrencies*: Powell is changing his stance on cryptocurrencies, indicating an unprecedented openness to digital currencies, stating: "We are not against innovation" ² ³.
*Impact of Powell's decisions on financial markets:*
- *Negative impact on the U.S. dollar*: A rate cut could lead to a decline in the value of the U.S. dollar.
- *Positive impact on the stock market*: A rate cut typically supports rising stock prices due to lower borrowing costs and increased risk appetite among investors ¹.$BTC