Here are some key quotes from Fed Chairman Jerome Powell that are worth your attention:

Banks are now FREE to offer services to the crypto industry, and they can also conduct operations with cryptocurrencies.

Under the previous (Democratic) administration, the Fed, together with the OCC and FDIC, made it practically impossible for any bank to deal with crypto. This was called "debanking" — crypto companies couldn’t get banking services, and there was no legal way to buy crypto with a bank account.

Now, that has changed — this opens the floodgates of liquidity. Once crypto becomes popular again, we’ll feel the impact. This is the first cycle happening under these new, more open conditions.

The Fed hasn’t cut interest rates yet because their forecasts (and those of other countries) show inflation might rise significantly this year.

The Fed is already happy with the progress, and they’re ready to cut rates, but they’re worried about inflation rising due to new tariffs. As long as the job market and economy are strong, they prefer to wait and be cautious.

There are no signs of a recession right now. If the job market weakens (higher unemployment, fewer jobs) or if inflation drops — then they will lower rates. But since the labor market is strong, they can afford to wait.

This Friday, a new inflation report comes out. Based on Powell’s comments, markets will react strongly to both inflation and job market reports. Any sign of weakness — whether in inflation or jobs — will be seen as a positive by investors, who will then expect faster and deeper rate cuts this year.

The effects of Trump’s tariffs are expected to show up in economic reports in June, July, and August. If those reports don’t show a big jump in inflation, the Fed will likely cut rates.

We actually predicted back in early April (when BTC was at $74,000) that the tariffs would only show up in the summer reports. That’s why we took long positions and expected a bounce before “turbulence” starts in summer.

Summary:

The Fed has given a full green light for crypto — this is a big deal. It means this market cycle can be much stronger than previous ones, which happened under total banking isolation. Now investors can legally and easily buy crypto — all that’s left is for them to want to do it.


The economy right now is stable — that’s the ideal scenario for continued growth.

Rate cuts usually happen when there’s trouble in the economy or falling markets. Likely in the second half of summer, we’ll see the negative effects of tariffs in reports — signs like a weaker job market or slowing growth. When that happens, the Fed will step in and make monetary conditions easier, helping both the economy and markets.


Historically, this kind of “clarity” from the Fed has triggered euphoria and strong rallies — especially in small-cap stocks and altcoins.