After years of restrictions, Federal Reserve Chairman Jerome Powell recently signaled that U.S. banks can fully serve crypto customers, as long as they understand and manage the risks.
Banks Have the Right to Offer Crypto Services
Speaking at a press conference on Wednesday, Powell emphasized:
✅
does not oppose financial innovation, including in the crypto sector.
✅ Banks can serve crypto customers, but they must have the ability to manage risks.

Bitcoin (BTC) broke above $105,000 yesterday after the US Federal Reserve decided to keep interest rates unchanged. This decision changed investor sentiment positively, pushing Bitcoin price to a 3-day high.
Bitcoin Surpasses $105,000 Mark
After the #Fed announcement of the decision to leave interest rates unchanged, Bitcoin had a strong bounce. Although the price of Bitcoin initially dropped slightly to $101,800, it soon recovered and surpassed the $105,000 mark, marking a significant increase.

The price of Bitcoin has just experienced significant volatility after the U.S. Federal Reserve (Fed) decided to maintain interest rates instead of continuing cuts as some investors had expected.
Fed Pauses Interest Rate Cuts – Bitcoin Soars and Plummets
On Wednesday, #Fed announced to keep the interest rate at 4.25% - 4.50%, unchanged from before. This decision caused Bitcoin to drop from $103,000 to $101,400, but shortly after it surged back to $103,800, the highest level in the last three days.

If you want to make money in any market, the most important thing to understand is that everything depends on U.S. dollar policies.
Can the U.S. Federal Reserve Print Money However It Wants?
Many people think that the U.S. Federal Reserve (The Fed) can print unlimited money whenever it wants, but that’s not true. Printing money follows a proper mechanism—otherwise, the economy could collapse.
How Does the U.S. Print Money?
1. Gold Standard vs. Fiat Currency
• Previously, the U.S. dollar was backed by gold (Gold Standard), meaning the government could only print as much money as it had in gold reserves.
• After 1971, the U.S. switched to a Fiat Currency system, meaning money is now based on government trust rather than being backed by gold.
2. The Federal Reserve Controls Money Supply
• The Fed does not directly print money; instead, it controls money supply through bond buying and interest rate adjustments.
• If the Fed increases the money supply too much, inflation occurs. If it reduces the supply too much, there is a risk of recession.
• The Fed increases money supply by buying Treasury bonds or lowering interest rates.
3. Banking System & Fractional Reserve
• When people deposit money in banks, banks can lend out 90% of those deposits in loans.
• For example, if someone deposits $100,000, the bank can lend $90,000, which then gets deposited elsewhere, increasing the overall money circulation.
If a government prints money without following this system, hyperinflation can occur—just like what happened in Venezuela and Zimbabwe.
What Are M1, M2, M3, and M4?
These are money supply indicators developed by the Federal Reserve and IMF to track the economy.
1. M1 (Most Liquid Money – Easy-to-Use Cash)
Includes:
✔ Physical cash (dollar bills, coins)
✔ Checking accounts (immediately withdrawable money)
✔ Traveler’s checks
✔ Demand deposits (funds available on demand)
Impact on Trading:
✔ If M1 increases, people have more cash → Spending rises → Inflation risk increases → Gold & Bitcoin may rise.
✔ If M1 decreases, people have less cash → Market slows → Stocks and crypto may fall.
2. M2 (M1 + Semi-Liquid Money)
Includes:
✔ Everything in M1, plus:
✔ Savings accounts (withdrawal restrictions apply)
✔ Small time deposits (CDs under $100K)
✔ Money market funds
Impact on Trading:
✔ If M2 increases, liquidity rises → Stocks & crypto may go up.
✔ If M2 decreases, liquidity tightens → Recession risk increases.
3. M3 (M2 + Large Time Deposits & Institutional Funds)
Includes:
✔ Everything in M2, plus:
✔ Large time deposits (big bank & institutional savings)
✔ Institutional money market funds
✔ Foreign deposits
Impact on Trading:
✔ A drop in M3 can signal a recession, as institutions start saving instead of investing.
✔ If M3 rises, asset markets can turn bullish.
4. M4 (M3 + All Other Bank Deposits)
• Tracked mostly in Europe and the UK, M4 includes all bank deposits and funds.
2008 Recession & M1, M2 Analysis – How to Predict a Recession?
What Happened in 2008?
✔ Banks ran out of liquidity.
✔ M2 and M3 sharply declined (people withdrew money, investment dropped).
✔ Stock markets crashed, while gold prices surged.
✔ The Fed launched Quantitative Easing (QE) to increase M2 supply (by buying bonds).
How to Predict a Recession Using M1, M2, M3?
✔ If M2 and M3 start falling, people are saving → Liquidity crisis is coming.
✔ If the Fed increases M1 and M2 (by buying bonds or cutting interest rates), they are injecting liquidity to prevent a crisis.
✔ Gold and Bitcoin tend to rise before a recession, as investors move to safe-haven assets.
Trading Decisions Based on Money Supply
✔ Gold & Crypto:
✔ If M1 and M2 rise → Inflation risk increases → Gold & Bitcoin may rise.
✔ If M2 drops → Recession risk rises → Gold becomes a safe-haven asset.
✔ Stocks & Forex:
✔ If M2 and M3 rise, markets have liquidity → Stocks may go up.
✔ If M2 drops, liquidity is tightening → Stocks & Forex face higher risk.
✔ Recession Analysis:
✔ If M2 and M3 drop sharply, the economy may slow down → Recession risk rises.
✔ If M2 and M3 start rising again, it signals a recovery phase.
Comparing 2008’s data with today’s TradingView or Fed data can help predict market trends and recessions!
Can the U.S. Federal Reserve Print Money Freely?
Short Answer: No!
The Federal Reserve cannot print money out of thin air. It must follow a proper system—otherwise, the U.S. dollar would lose value, causing hyperinflation, just like in Venezuela and Zimbabwe.
How Does the U.S. Print Money? (Explained with a Pakistan Example)
Step 1: U.S. Treasury Bonds (Government Debt Certificates)
When the U.S. needs money, it issues Treasury Bonds (government debt).
✔ These bonds mean: “Lend us money, and we’ll pay you back with interest.”
👉 Pakistan Example: Imagine the Pakistani government selling Motorway Bonds to raise funds for a highway project. Investors lend money and earn interest.
Step 2: Who Buys These Bonds?
✔ Foreign Countries → (China, Japan, Saudi Arabia, etc.)
✔ Big Banks & Investment Funds → (Goldman Sachs, JP Morgan, etc.)
✔ The Federal Reserve (U.S. Central Bank)
👉 Pakistan Example: Imagine State Bank of Pakistan buying government bonds to inject money into the economy.
Step 3: How the Federal Reserve Creates Money
✔ When the Fed buys bonds, it issues new dollars, increasing the money supply without printing physical cash.
Step 4: Bondholders Get Paid
✔ Fixed Interest Payments (every 6 months or annually).
✔ Full Principal Repayment (when the bond matures in 1, 5, 10, or 30 years).
Conclusion – The U.S. Cannot Just Print Money!
✔ The U.S. follows a strict bond-based system to control the money supply.
✔ The Federal Reserve manages liquidity through bond buying/selling and interest rates.
✔ Excessive printing leads to inflation & market crashes.
✔ Understanding this mechanism helps in trading & investment decisions!
#Fed $USDC

The Fed, which left interest rates unchanged last night, asked about cryptocurrencies until the end of the press conference. The #Fed chairman said, "This should be done constructively."
The US Federal Reserve (Fed) went crazy yesterday with the interest rates it has been reducing in the last 3 years. As expected by the markets, interest rates were kept constant at 4.25%-4.5%.
The markets were curious about the Fed leaving interest rates, but #Powell 's fixed words were. Powell stated that he was determined about the 2% inflation target, and said that they would not be in a hurry to reduce interest rates. The Fed chairman also said that he would not respond to Trump's words, "I know the economy well."
Powell: We Have Not Met
At the end of the press conference, Powell was also asked about his perspective on cryptocurrencies and the steps of the new government. Powell stated that this job increases the performance of banks more accurately:
"As the Fed chairman, of course I would prefer banks to do this job. We are not against innovation and technology. However, they should do this after completing the necessary economic risk measures”
Powell also stated that a more effective regulatory system would be provided in the crypto world and would create a much better environment.
#FedHODL #MicroStrategyAcquiresBTC #TrumpCryptoOrder

Recent indicators suggest that economic activity has continued to expand at a solid pace.
The unemployment rate has stabilized at a low level in recent months, and labor market
conditions remain solid. Inflation remains somewhat elevated.
The Committee seeks to achieve maximum employment and inflation at the rate of
2 percent over the longer run. The Committee judges that the risks to achieving its employment
and inflation goals are roughly in balance. The economic outlook is uncertain, and the
Committee is attentive to the risks to both sides of its dual mandate.
In support of its goals, the Committee decided to maintain the target range for the federal
funds rate at 4-1/4 to 4-1/2 percent. In considering the extent and timing of additional
adjustments to the target range for the federal funds rate, the Committee will carefully assess
incoming data, the evolving outlook, and the balance of risks. The Committee will continue
reducing its holdings of Treasury securities and agency debt and agency mortgage‑backed
securities. The Committee is strongly committed to supporting maximum employment and
returning inflation to its 2 percent objective.
In assessing the appropriate stance of monetary policy, the Committee will continue to
monitor the implications of incoming information for the economic outlook. The Committee
would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that
could impede the attainment of the Committee’s goals. The Committee’s assessments will take
into account a wide range of information, including readings on labor market conditions,
(more)
inflation pressures and inflation expectations, and financial and international developments.
Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams,
Vice Chair; Michael S. Barr; Michelle W. Bowman; Susan M. Collins; Lisa D. Cook; Austan D.
Goolsbee; Philip N. Jefferson; Adriana D. Kugler; Alberto G. Musalem; Jeffrey R. Schmid; and
Christopher J. Waller.