Jerome Powell acknowledges Bitcoin as a store of value, comparing it to gold. However, he states that it is not a direct competitor to the U.S. Dollar due to its high volatility and limited acceptance as a payment method.
The macroeconomic environment, characterized by a 3% Consumer Price Index (CPI) and a 3.5% Producer Price Index (PPI) in January, adds pressure on Bitcoin’s recovery. Market uncertainty remains as inflation affects crypto assets.
Powell’s stance against Quantitative Easing indicates that any policy shift affecting Bitcoin is unlikely soon. Nonetheless, his recognition of Bitcoin’s store-of-value potential enthuses the crypto community about its potential future growth.
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