Powell Breaks Silence! Cryptocurrency Goes Mainstream as Bank Regulations Ease!

TradingKey – Fed Chair Powell declares crypto is "going mainstream," boosting Bitcoin’s rebound as analysts turn bullish on Q2 outlook.  

On Wednesday local time, Federal Reserve Chair Jerome Powell spoke at the Economic Club of Chicago, stating that cryptocurrency is gradually becoming mainstream and that establishing a legal framework for stablecoins is a sound idea. Powell also hinted that banking regulations are likely to loosen in certain areas.  

During the Biden administration, banks took a cautious approach toward crypto, especially after the collapse of Silicon Valley Bank, which led to tighter restrictions on stablecoin development and hindered crypto liquidity.  

Powell’s latest remarks not only clarify the future trajectory of crypto but also boost market confidence. Early this morning, Bitcoin (BTC)  surged past $85,000, currently trading at $84,420.  

Bitcoin Price Chart – Source, CoinMarketCap.

Analysts generally believe that Bitcoin and the crypto market will rebound in the second quarter. This optimism is mainly due to several factors. First, there is an increase in global money supply. Second, the regulatory environment in the U.S. is improving. Lastly, the size of stablecoins has reached a record high, surpassing $218 billion.