Brothers, something big has happened! Powell officially becomes the Federal Reserve Chair, is the crypto world doomed or can it survive?

Brothers, just this morning, the U.S. Senate approved—Powell officially takes office as Fed Chair!
Once the news broke, U.S. stock futures immediately dropped, the dollar surged, and the crypto market started bouncing up and down. Don’t panic, let’s break down in plain language who this guy really is, and whether he’s a sword or sugar for our coins.
Who is Powell? In one sentence: hawkish and tough, he looks down on Bitcoin.
This guy is not a rookie. He was an economic advisor during the Bush Jr. era, and during the 2008 financial crisis, he advocated for strict regulation. Now that he’s the head of the Fed, here are three labels:
· Likes rate hikes: He’s been criticizing the previous Fed for cutting rates too aggressively, believing that flooding the market with money without controlling inflation is a recipe for disaster. So, when he takes office, he’s unlikely to cut rates, and may even continue raising them.
· Looks down on crypto: In 2023, he wrote articles calling Bitcoin a speculative tool, and said stablecoins could pose systemic risks. He wants to push crypto assets into traditional banking regulation.
· Staunch defender of the dollar: He said, “Don’t think digital currencies can threaten the dollar’s position,” and is indifferent to digital dollars, let alone making Bitcoin a reserve asset.
Short-term: money will get more expensive, the crypto market might take a hit first
The first thing this guy does is shrink the balance sheet + hint at rate hikes. For our crypto market:
· Bitcoin and U.S. stocks are like siblings: as money in the market decreases, leverage funds will flee first, and Bitcoin is likely to fall along with stocks. If he makes more harsh comments in June, BTC might crash again.
· Stablecoins will be targeted: He previously pointed out USDT, USDC as opaque. In the future, he might force stablecoins to be bank-custodied, causing a sudden withdrawal of funds from DeFi, leading to short-term volatility.
Long-term: cleanse for health, only those who survive are the real ones
But don’t rush to sell everything and run away; every major cleanup hides opportunities.
$ETH