Powell’s Bitcoin Ballroom: A Digital Gold Dance! 🕺

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Powell’s Bitcoin Ballroom: A Digital Gold Dance! 🕺

  • Old Powell’s nod to Bitcoin as a treasure chest, but a dollar usurper? Never!
  • Inflation waltzes higher, and the Fed’s tango with QE has our Bitcoin in a twist.

Ah, the tale of the Federal Reserve’s grandmaster, Jerome Powell, and his dalliance with the cryptoverse has injected a spot of optimism into the digital market’s tea. The chap’s been seen doing a bit of a jig around Bitcoin [BTC], and it’s got the tongues wagging and the keyboards clacking.

What’s more, the ringmaster of Binance, Changpeng Zhao (CZ), has been observing Powell’s performance with an amused eye. At the New York Times DealBook Summit, Powell, arm in arm with Andrew Ross Sorkin, twirled out a zinger, saying,

“People use Bitcoin as a speculative asset, right? It’s like gold. It’s just like gold only. It’s virtual. It’s digital. People are not using it as a form of payment or as a store of value. It’s highly volatile. It’s not a competitor for the dollar. It’s really a competitor for gold.”

CZ, with a twinkle in his eye, quipped,

“That’s an improvement to the previous narrative. Baby steps…”

Despite this tap dance of recognition, Powell remains steadfast in his belief that Bitcoin’s wild gyrations and lack of shopping basket utility render it incapable of toppling the almighty dollar from its throne. Ah, the plot thickens!

The Grand Economic Waltz

As the macroeconomic orchestra plays a tune of inflation and cautious central bankers, our dear risk assets, including the cryptos, find themselves in a bit of a squeeze. The U.S. Consumer Price Index (CPI) and Producer Price Index (PPI) have been dancing to the tune of 3% and 3.5%, respectively, reaching heights not seen since the days of Mardi Gras in February.

With the Federal Reserve’s bandleader putting his foot down on rate cuts, the crypto carnival’s next big bash seems to have hit a bit of a snag. Yet, as the weekend approached, our digital darlings showed a bit of pluck, hinting at a possible comeback tour.

Bitcoin’s Next Encore?

Powell’s latest performance at the congressional theatre on the 11th of February was a stern one, with a vaudeville villain’s mustache-twirling rejection of QE and a rousing chorus of Quantitative Tightening (QT). The crypto gallery was abuzz, with some applauding the economic stability matinee and others fretting over the encore’s delay for Bitcoin’s bullish ballad.

With inflation still doing the cha-cha above target and rate cuts taking a bow, the crypto cotillion faces a bit of a waltz through the thorns. Yet, Powell’s newfound twinkle for Bitcoin as a digital doubloon keeps the investors’ toes tapping, as they ponder the impact of future monetary minuets on the landscape of these digital assets.

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2025-02-17 06:20