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

🔸Impact on digital currencies:
Political stability and predictability:
🔸Positive Impact: Confidence that inflation is close to the target level and that the economy remains strong may encourage investors to seek alternative investments, including cryptocurrencies, as a way to diversify their portfolio. Stable monetary policy can also reduce market volatility, indirectly benefiting digital assets.
Inflation Expectations:
🔸Possible negative impact: If inflation continues to exceed the target, it may lead to expectations of further monetary policy tightening, which could raise Treasury bond yields and strengthen the U.S. dollar, typically having a negative effect on digital currency prices.
🔸 Market response to policy:
🔸 Impact of Investor Sentiment: Statements that policy may remain cautious if inflation fails to approach 2% towards stability expectations or even policy tightening to temporarily reduce interest in high-risk assets, including cryptocurrencies. However, if the labor market weakens or inflation declines faster than expected, it may lead to policy easing, which could be positive for the cryptocurrency market.
🔸Long-term prospects:
🔸 Growth Potential: If the Federal Reserve maintains its current policy and the US economy continues to show strength, this 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 could lead to some uncertainty and even price declines if investors anticipate a policy aimed at monitoring inflation more strictly. However, in the long run, 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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