The impact of Jerome Powell's remarks (#PowellRemarks) on Binance and cryptocurrencies can be summarized in several key points:
1. The concern about raising interest rates
Powell indicated that due to inflation resulting from new tariffs, there may be a slowdown in the economy, prompting the Fed to pause on rate cuts or even consider raising them again.
The impact on cryptocurrencies:
Raising interest rates typically pressures cryptocurrencies like Bitcoin and Ethereum because they are high-risk assets, and investors prefer safe assets like the dollar or bonds at that time.
2. A decline in financial markets
After his statements, traditional markets (like S&P and Nasdaq) experienced a sharp decline, and this drop also reflected in the crypto market, where investors began to take profits or exit the market in anticipation of greater volatility.
Specifically on Binance:
An increase in trading volume was observed, especially in stablecoins (like USDT), as traders seek to reduce risks. Some altcoins also experienced significant declines.
3. Increased interest in hedging
When Powell speaks negatively about the economy, some see cryptocurrencies like Bitcoin as a hedge against inflation or economic instability.
This may give a temporary boost to Bitcoin, but it depends on the reaction of the global market.
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If you are trading or investing on Binance, pay attention to these matters:
Statements from the U.S. Federal Reserve.
Movement of the U.S. dollar (DXY).
Upcoming interest rate decisions (FOMC meetings).
