🔸Federal Reserve Chairman Jerome Powell announced that the US economy is strong and inflation is approaching the targeted 2%, but it is still somewhat high. He also pointed out that the current Federal Reserve policy is well adapted to risks and uncertainties, and that the Fed will not change the inflation target, but will rely on actual data.

🔸Impact on digital currencies:
Policy stability and predictability:
🔸Positive Impact: Confidence that inflation is close to target levels and that the economy is still strong may encourage investors to seek alternative investments, including cryptocurrencies, as a means of portfolio diversification. Stable monetary policy can also reduce market volatility, indirectly supporting digital assets.
Inflation Expectations:
🔸Potential negative impact: If inflation continues to exceed the targeted goal, it may lead to expectations of further monetary policy tightening, which could raise Treasury bond yields and strengthen the US dollar, typically negatively impacting digital currency prices.
Market response to policy:
🔸 Impact of Investor Sentiment: Statements that policy may remain cautious if inflation fails to approach 2% to stability expectations or even policy tightening could temporarily reduce interest in high-risk assets, including cryptocurrencies. However, if the labor market weakens or inflation falls faster than expected, this could lead to policy easing, which could be positive for the cryptocurrency market.
🔸Long-term Perspectives:
🔸 Growth potential: If the Federal Reserve sticks to the current policy and the US economy continues to show strength, it may contribute to increased public investment interest in innovative technology and assets, including cryptocurrencies. Especially if the market interprets Powell's statements as a sign of stability and political expectations.
🔸Conclusion:
Jerome Powell's statement may have a dual impact on the cryptocurrency market. In the short term, this may lead to some uncertainty and even price declines if investors anticipate a policy aimed at tighter inflation control. However, in the long term, if the Federal Reserve's policy enhances stability and economic growth, it may create favorable conditions for increased interest in cryptocurrencies as an asset class.
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