#PowellRemarks

Fed Chair Powell's Key Remarks & Crypto Impact (July 2024 Analysis)

1. Rate Policy Outlook

- "Restrictive for Longer": Rates held at 5.25%-5.50%, but Powell noted "disinflation progress"—hinting at potential 2024 cuts.

- **September Cut Odds: Now 72% (up from 65% pre-meeting).

2. Crypto-Specific Takeaways

✅ Dovish Tone = BTC Rally

- Powell acknowledged cooling labor market, boosting risk assets.

- Bitcoin jumped +3% to $62,500 post-remarks.

⚠ QT Tapering Coming

- Fed will slow balance sheet runoff "soon" → more liquidity for crypto.

❌ No CBDC Push

- Powell reiterated "no plans for a digital dollar" → bullish for stablecoins (USDC, USDT).

3. Trading Strategies

- Short-Term: Long BTC targeting $65K, ETH $3,600 pre-September cut.

- Altcoin Plays: Rotate into SOL, ARB if ETF inflows resume.

- Stablecoin Hedge: Hold USDC for yield (5% APY) during volatility.

4. What’s Next?

- August 1: ECB decision (could reinforce dovish trend).

- September 18: Likely first Fed cut—position accordingly.

Powell’s Quote to Watch:

"We’re getting closer to having confidence to cut rates."

Data as of July 31, 2024.