Jerome Powell Recognizes Bitcoin as “Digital Gold” – “Baby Steps…”
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- Powell acknowledges Bitcoin’s value but asserts it won’t rival the dollar.
- Inflation surge and Fed policy may impact Bitcoin’s upcoming performance.
The shift in Federal Reserve Chairman Jerome Powell’s outlook on Bitcoin [BTC] has breathed new life into the crypto market.
Additionally, Binance [BNB] founder Changpeng Zhao (CZ) emphasized Powell’s evolving perspective, which marks a significant shift from his earlier hesitance regarding BTC.
CZ commends Powell’s revised viewpoint
Diving deeper during an interview with Andrew Ross Sorkin at the New York Times DealBook Summit, Powell remarked:
“Bitcoin is primarily used as a speculative instrument; it’s akin to gold but in a digital format. It does not function effectively as a payment method or maintain stable value—its volatility remains an issue.”
Zhao reacted positively to this change in tone, stating:
“This adjustment from previous narratives shows progress. Small steps forward…”
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While Powell maintains that BTC holds store of value potential, he emphasizes its inability to compete with USD because of its volatility and limited use for payments. span >
Current economic landscape
Meanwhile , prevailing macroeconomic trends have exerted additional pressure on high-risk assets like cryptocurrencies.
The most recent U.S.Consumer Price Index (CPI) data revealed that inflation accelerated to 3% in January , while the Producer Price Index (PPI)
increased by
3 .5%
, indicating its highest level since February 2023.User shareability information corrects here…..
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