This week, the cryptocurrency markets are keenly awaiting inflation data while Federal Reserve Chair Jerome Powell testifies before Congress. Bitcoin 
$61,345‘s price remains under $97,000, with ongoing weakness in altcoins. Investors are increasingly unsettled as Trump continues to take steps regarding additional tariffs.
Cryptocurrencies and Powell’s Remarks
In contrast to previous statements, Powell offered supportive comments regarding regulatory efforts for cryptocurrencies. While he discussed tariffs in his ongoing testimony, he was unable to reverse the negativity in risk markets.
“I support efforts to establish a regulatory framework for stablecoins.
The balance sheet reduction continues. Reserves remain ample. Standard conditions for free trade still make sense, but it hasn’t worked out well with a major country not playing by the rules. Commenting on tariff policy is not the Fed’s role. I stand by my earlier remarks that countries with free trade tend to grow faster. The outlook for budget deficit risks and inflation expectations are key factors determining long-term interest rates. The Fed cannot control long-term rates.
I cannot say whether we are experiencing a soft landing; however, we did not have a hard landing. Even when interest rates fall, we will continue to face housing shortages.
We are not in a recession. High mortgage rates relate more to Treasury yields than Fed policy. I see no reason to rush. I want to make more progress on inflation.”
As the SEC seeks to resolve cryptocurrency lawsuits under new leadership, senators are working on new crypto legislation. However, as the markets have priced in the worst regarding tariffs, cryptocurrencies have been experiencing pain for several days.
