Jerome Powell’s Congressional Hearing remarks on the crypto markets paint a bullish picture for the asset class’s future. Oh? — Will Clemente (@WClementeIII) March 2, 2022 Okay, this response may have come from a question about the World Economic Forum’s plan to use a basket of currencies as monetary backing, but crypto proponents like us […] The post Crypto Market Responds To Jerome Powell’s Congressional Hearing Remarks appeared first on CryptosRus.

Crypto Market Responds To Jerome Powell’s Congressional Hearing Remarks

Jerome Powell’s Congressional Hearing remarks on the crypto markets paint a bullish picture for the asset class’s future.

Okay, this response may have come from a question about the World Economic Forum’s plan to use a basket of currencies as monetary backing, but crypto proponents like us can hope he meant Bitcoin, right?

Today at the Congressional Hearing on Monetary Policy and the State of the Economy, Federal Reserve Chair Jerome Powell seemed to acknowledge the viability of crypto while also trying to stay true to the government’s CBDC aspirations. Here’s one of my favorite quotes, of Powell essentially equating crypto to gold.

Now, I understand that his point is more so to emphasize the speculative nature of the crypto asset class. And while this argument is waning literally by the day as crypto receives greater and greater acceptance among the mainstream, the quote just speaks to where the heads of government officials are at when it comes to crypto.

It’s also worth mentioning that the gold market cap is sitting at $12.3 trillion while crypto hovers around $2 trillion. I wouldn’t call crypto’s use “for speculation like gold” a bad compassion at all…

Powell also acknowledges that the Fed has no defined plans to implement a central bank digital currency (CBDC), but they are actively monitoring the financial landscape to determine what actions they deem appropriate. Regardless of what they may decide, at least Powell understands just how little power a CBDC has over permissionless, private use of crypto.

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  • In terms of rate hikes, Powell is eyeing a 25 basis point rate hike in March but is open to ‘adapting’ in the face of new economic data. That means a 50 basis-point hike isn’t off the table.
  • Year-over-year CPI inflation is sitting at 7.5% as of January, reaching a 40-year high, but Powell exclaims that he is using the tools necessary to taper off the inflation rate in 2022.
  • The economic train is chugging along fragile rails as war between Russia and Ukraine heats up
  • Despite the invasion of Ukraine just 6 days ago, Bitcoin has rallied about 29% since bottoming, lifting the overall crypto market with it.

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