Powell Praises Bitcoin: A New Era for Crypto?

Binance founder Changpeng Zhao, also known as CZ, has praised U.S. Federal Reserve Chair Jerome Powell's evolving stance on Bitcoin (BTC). Powell, who previously criticized the cryptocurrency, now compares it to gold, a shift that has garnered attention from the crypto community and sparked discussions about its potential implications for the market.

During the New York Times DealBook Summit, Powell acknowledged that Bitcoin is primarily used as a speculative asset, likening it to virtual gold. This represents a significant departure from his earlier stance, which was less supportive of Bitcoin. CZ shared his thoughts on Powell's new perspective in an X post, describing it as an "improvement to the previous narrative."

While Powell now compares Bitcoin to digital gold, he still believes it cannot replace the U.S. dollar. He cited Bitcoin's high price volatility and limited use in everyday transactions as reasons for this. Powell's statement has been met with enthusiasm from Bitcoin supporters, who believe it could lead to greater acceptance of the cryptocurrency in the financial world. However, some remain cautious about whether this will result in positive regulatory changes.

Despite Powell's softened view on Bitcoin, the Federal Reserve's actions continue to put pressure on crypto and other risky investments. The latest U.S. Consumer Price Index (CPI) report showed inflation at 3% in January, higher than expected. The Producer Price Index (PPI) also rose to 3.5%, its highest since February 2023. As inflation remains a concern, the Federal Reserve has not lowered interest rates, which has slowed down the crypto market's recovery.

In addition to Powell's Bitcoin comments, CZ has recently made headlines for a different reason. After being released from prison, CZ introduced his new dog, Broccoli. Unsurprisingly, this led to the launch of more than 20,000 memecoins in the market, inspired by the dog. A recent report revealed that a crypto whale made a significant investment in the "BROCCOLI" token, adding to the excitement.