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: both hawkish and ruthless, 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, thinking that flooding the market with liquidity without controlling inflation is a recipe for disaster.
So, when he takes office, he’s unlikely to cut rates, and might even continue raising them.
· Looks down on crypto: In 2023, he wrote an article saying Bitcoin is just a speculative tool, and stablecoins could pose systemic risks.
He wants to push crypto assets into traditional banking regulation.
· Dead set on defending the dollar: He said, “Don’t think digital currencies will threaten the dollar’s position,” and shows little interest in digital dollars, let alone making Bitcoin a reserve asset.
Short-term: Money will get more expensive, and the crypto market might take a hit first.
The first thing he does is shrink the balance sheet and hint at rate hikes. For our crypto market:
· Bitcoin and the stock market 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 face scrutiny: He previously pointed out USDT and USDC as opaque.
In the future, he might force stablecoins to be bank-custodied, which could suddenly drain funds from DeFi, causing short-term volatility.
Long-term: Clean up for health, only those who survive are the real players.
But don’t rush to sell everything and run away; every major cleanup hides opportunities.