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Toggle"The person who can make Bitcoin's price rise or fall with just one sentence" is a phrase financial professionals often use when referring to this powerful man. Every time Jerome Powell speaks, even just one sentence about inflation, interest rate cuts, or softening economic tone can cause Bitcoin and numerous altcoins to experience dramatic volatility. Who is this powerful man? Let's explore with Allinstation through the article below!
[The rest of the translation follows the same professional and accurate approach, maintaining the original structure and meaning while translating to English.]The phrase "Good Afternoon" by Jerome Powell – seemingly just a greeting at the beginning of each FOMC press conference – has become a famous meme in the financial and crypto community. Jerome Powell typically starts the press conference with the familiar greeting: "Good afternoon. Thank you for joining us...". The issue is that right after this greeting, he usually goes straight into monetary policy updates, which during the 2022-2023 interest rate hike cycle, were often very "hawkish". As a result, the market would immediately plummet just a few seconds after he spoke. Since then, the phrase "Powell just said Good Afternoon – time to sell" has become a popular joke, implying that as soon as Powell says hello, the market will... turn blood red.
Jerome Powell's Notable Policies
Super Loose Policy during COVID-19 Period (2020 – 2021)
When the COVID-19 pandemic broke out, Jerome Powell responded decisively:
- Lowered interest rates to near 0%. Launched massive QE programs, buying bonds worth trillions of USD to stabilize the market.
- Provided liquidation to financial institutions, helping prevent widespread credit crisis.
This policy caused the global financial market to recover strongly, pushing stock prices, real estate, and especially Bitcoin from under $5,000 to over $60,000 in less than a year.
The Most Aggressive Monetary Tightening Cycle in Modern History (2022 – 2023)
Facing the highest inflation in over 40 years, Powell switched to a hawkish policy:
- Increased interest rates from near 0% to over 5% in just over 12 months.
- Started quantitative tightening (QT), reducing the Fed's balance sheet by hundreds of billions of USD.
This series of interest rate hikes caused global asset markets to adjust strongly, including crypto. BTC dropped from ~$69,000 to under $20,000 in 2022.
Strong Communication Strategy – Guiding Market Expectations
Powell is very skilled at using statements and language to navigate investor psychology. At each FOMC meeting, he carefully considers every word to send a firm signal while avoiding market panic. One of his most powerful "soft weapons" is the "Fed Watch" – the market effect of each Powell statement, influencing stock, USD Index, bond yield, and even Bitcoin movements.
Avoiding Shock – Balancing Reality and Political Expectations
Unlike previous Fed Chairs who were more academic, Powell has experience from both public and private sectors, making him more flexible and pragmatic in management. He has been trusted by both Democratic and Republican parties, being one of the few Fed Chairs appointed by two presidents from different parties (Trump and Biden).
Why Jerome Powell Influences the Crypto Market
Although not directly managing any crypto organization, Jerome Powell – Chair of the Federal Reserve – is considered the "most influential person for Bitcoin and the cryptocurrency market". The reasons lie in three main factors
Interest Rate Control – Critical Factor for Risky Assets
Crypto is similar to tech stocks, categorized as high-risk assets. When the Fed under Powell raises interest rates, capital costs increase, speculative money flow shrinks, and investors tend to withdraw from volatile assets like Bitcoin, ETH, altcoins, etc.
Conversely, when the Fed signals stopping or cutting interest rates, Crypto typically recovers strongly.
Dominating Global Market Psychology
Beyond policy-making, Powell guides market expectations through each statement. For investors, his "hawkish" or "dovish" tone can move markets in minutes. In the crypto market, which is sensitive and has many small traders, this impact is even greater.
The famous meme "Powell just said Good Afternoon – market crashes" accurately reflects his influence on both stocks and crypto.
Money Supply and Liquidation Decisions – Bull Run Foundation
Crypto growth cycles are linked to global liquidation expansion, and the Fed is the center of this money flow. Powell's quantitative easing (QE) policy after the 2020 pandemic was the primary catalyst that helped Bitcoin rise from $4,000 to $60,000.
Conversely, the interest rate hike cycle from 2022-2023 caused the entire crypto market to decline sharply, with market capitalization evaporating trillions of dollars. Therefore, each of Powell's decisions shapes the up/down cycle of digital asset markets.
Some of Jerome Powell's Notable Statements about Crypto
"We don't want to ban crypto, but need a clear legal framework."
- Statement before US Congress, March 2023
- Powell stated that the Fed has no intention of banning cryptocurrencies like China, but supports strict oversight to prevent systemic risks.
"Stablecoin could become an effective monetary form, but needs to be controlled like bank money."
- FOMC press conference, July 2022
- He clearly distinguished between stablecoins with real asset backing and opaque models like Terra (LUNA), while calling for management similar to traditional financial institutions.
"Crypto is not a systemic threat at this moment, but risks are accumulating."
- European Central Bank Forum, 2022
- Powell warned that as decentralized financial (DeFi) products develop rapidly without oversight, there is a risk of spillover effects to traditional markets.
"CBDC (central bank digital currency) should not erode the role of commercial banks."
- Speech at Yale University Conference, 2023
- He supports CBDC research but emphasizes the need to design it in a way that does not disrupt the current financial system.
Conclusion
Although not directly representing any blockchain project, Jerome Powell - the Chairman of the FED - is still one of the most influential figures in the cryptocurrency market. From adjusting interest rates and money supply to every statement in FOMC meetings, he indirectly coordinates cash flow and shapes the psychology of millions of investors worldwide.
In the crypto world, where asset values change with every macro breath, every time Powell "appears", the entire market holds its breath. And perhaps, to understand how crypto moves, sometimes it's not just about following charts but also listening carefully... to what Powell is saying. Hopefully, this article by Allinstation has helped readers better understand this powerful man.
