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 addressed  the Economic Club of Chicago, stating that cryptocurrency is gradually becoming mainstream and that establishing a legal framework for stablecoins is a prudent step. Powell also hinted that banking regulations  may be eased  in certain areas.  

During the Biden administration, banks adopted a cautious stance toward cryptocurrencies—particularly following  the collapse of Silicon Valley Bank—which led to tighter restrictions on stablecoin development and constrained crypto market liquidity.  

Powell’s latest remarks not only signal a clearer direction for  the future  of crypto but also helped boost market confidence. Earlier this morning, Bitcoin (BTC)  surged past $85,000, and is currently trading at $84,420.  

Bitcoin Price Chart – Source, CoinMarketCap.

Analysts broadly expect Bitcoin and the wider crypto market to rebound in the second quarter. This optimism is driven by several key factors: an increase in global money supply, an improving regulatory environment in the U.S., and the record-breaking size of the stablecoin market, which has now surpassed $218 billion.