🔸Statement: Jerome Powell, the chair of the Federal Reserve (, stated that the U.S. economy is strong, with the inflation rate close to 2%, but still slightly high. He also pointed out that the current Federal Reserve policy has well adapted to risks and uncertainties, and the Federal Reserve will not change the inflation target, but will adjust based on actual data.

🔸Impact on cryptocurrencies:
The stability and predictability of policies:
🔸Positive impact: Believing that inflation is close to the target level, the economy remains strong, which may stimulate investors to seek alternative investments, including cryptocurrencies as a means of portfolio diversification. Stable monetary policy may also reduce market volatility, indirectly benefiting crypto assets.
Inflation expectations:
🔸Potential Negative Impact: If inflation continues to exceed the target level, it may lead to further expectations of tightening monetary policy, which could raise bond yields and strengthen the dollar, typically unfavorable for cryptocurrency prices.
🔸Market reaction to policy statements:
🔸Impact on investor sentiment: If the policy remains cautious, expectations of stability or even policy tightening may be formed unless inflation approaches 2%, which may temporarily dampen interest in risk assets, including cryptocurrencies. However, if the labor market is weak or inflation declines faster than expected, this may lead to policy easing, which could be positive for the cryptocurrency market.
🔸Long-term outlook:
🔸 Growth Potential: If the Federal Reserve adheres to its current policy and the US economy continues to demonstrate its strength, this may promote overall growth in interest in innovative technologies and assets, including cryptocurrency investments. Especially if the market interprets Powell's statements as a sign of policy stability and predictability.
🔸Conclusion:
Jerome Powell's statement may have a dual impact on the cryptocurrency market. In the short term, this may lead to some uncertainty or even price declines if investors anticipate a stricter inflation control policy. However, in the long term, if the Fed's policy helps stabilize and grow the economy, this may create favorable conditions for the growth of interest in cryptocurrencies as an asset class.
) #BTC# #SOL# #XRP# #DOGE#