Did Jerome Powell Just Spark the Next Bitcoin Bull Run?

Jerome Powell's Crypto Greenlight: A Turning Point?

On June 24, 2025, Federal Reserve Chair Jerome Powell testified before Congress, delivering what many are now calling a game-changing message for the crypto world. For the first time with such clarity, Powell confirmed that U.S. banks are permitted to provide services to cryptocurrency firms, as long as they do so within the framework of proper risk management.

This wasn’t just a neutral clarification. It was seen by analysts, institutions, and crypto investors alike as a regulatory greenlight that could open the floodgates for institutional money. In short: the Fed just welcomed banks into crypto.

Bitcoin Reacts Instantly: Over $588M in Institutional Inflows

The market didn’t take long to respond. On the same day Powell gave his statement, institutional investors poured over $588 million into Bitcoin spot ETFs, with another $71 million flowing into Ethereum ETFs.

Bitcoin surged past $105,000, briefly tapping over $106,000, and traders are now eyeing the $112K level as the next key resistance. The timing is no coincidence — this move came immediately after Powell's statement, alongside a broader shift in regulatory sentiment.

Stablecoin Legislation Gets Support Too

Jerome Powell also threw his support behind upcoming stablecoin legislation, particularly bills like the GENIUS Act, which aims to regulate the issuance and backing of stablecoins in the U.S.

This is crucial because stablecoins power the crypto economy — from trading pairs on exchanges to global money transfers. Clear regulation around stablecoins means better infrastructure, more investor trust, and ultimately more capital entering the space.

Is This the Beginning of a Parabolic Bitcoin Rally?

Crypto analysts and market watchers are now debating whether this Fed-driven momentum could lead to a full-on parabolic bull run. Here’s why the market is so bullish:

1. Institutional Capital Flows: Banks are now cleared to interact with crypto — this means new services, new products, and a wall of money waiting to enter.
2. Regulatory Clarity: One of the main hurdles for institutions has been uncertainty. Powell’s statement just removed a big part of that.
3. Stablecoin Framework: A solid legal foundation for stablecoins can supercharge adoption and make DeFi more appealing to traditional finance.

From $105K to $112K and Beyond?

With regulatory clarity and growing institutional confidence, Bitcoin appears poised for further gains. If current momentum holds, breaking above $112,000 could open the door to new all-time highs by Q3 2025.

But as always in crypto, volatility remains king — and traders should keep a close eye on macroeconomic data, geopolitical developments, and ETF inflow trends to confirm the rally’s sustainability.

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