Jerome Powell has been the Chairman of the Federal Reserve System (Fed) since 2018. His decisions and statements have a powerful influence on global financial markets, including cryptocurrencies.

How does Powell influence crypto?

1. Fed interest rate decisions

• If rates are lowered, investors seek more profitable assets → crypto rises.

• If rates rise, money goes into bonds and deposits → crypto falls.

• Example: In 2021, when rates were zero, Bitcoin reached $69,000. In 2022, the Fed sharply raised rates, and BTC fell below $20,000.

2. Inflation control and 'strict rhetoric'

• Powell often speaks about fighting inflation, which causes fear among investors and leads to falling prices for risky assets (including crypto).

• If inflation decreases, the Fed may soften its policy → markets rise.

3. Statements on crypto regulation

• Powell has repeatedly stated that Bitcoin is not money, and stablecoins require strict regulation.

• His stance is not as strict as the ECB's, but he supports increased control over the crypto industry in the US.

4. Influence on the dollar (DXY) and global markets

• Fed policy influences the dollar index (DXY).

• Strong dollar → crypto falls.

• Weak dollar → crypto rises.

• For example, in 2020, the Fed activated the 'printing press' (QE), and Bitcoin soared from $10,000 to $60,000.

What decisions by Powell are important for the crypto market?

1. Rhetoric at FOMC meetings (Federal Open Market Committee).

2. Rate forecasts (dot plot) – whether the Fed plans to lower rates.

3. Comments on the regulation of stablecoins, ETFs, DeFi.

4. Economic data (inflation, employment, US GDP) – affects Fed policy.

Conclusion

Jerome Powell is one of the key figures influencing the price of Bitcoin and the crypto market. If he signals a softening of policy, crypto rises. If he tightens rhetoric – it falls. It's important for everyone trading crypto to follow his speeches.

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