Bitcoin’s move above $97,000 coincided with renewed criticism from Federal Reserve official Neel Kashkari, drawing attention across both traditional and digital asset markets. At a time when institutional attitudes toward cryptocurrencies have appeared to soften in some areas, Kashkari’s remarks stood out as a notably skeptical counterpoint.
Kashkari questions crypto’s value for consumers
In his comments, Kashkari said cryptocurrencies are ultimately ineffective for consumers, reinforcing a cautious tone that has often characterized the Federal Reserve’s stance on digital assets. He also referred to Chair Jerome Powell’s broader assessment of the economy, noting that the labor market is showing signs of weakness while inflation remains elevated, though moving in a more favorable direction.
According to Kashkari, the US economy still looks resilient, even if the pace of slowdown has been more gradual than some expected. He also suggested that the real restrictiveness of current monetary policy remains open to debate, and that tariffs have so far been less damaging than initially feared, even if their longer-term effects are still uncertain.
Fed keeps focus on inflation target
Kashkari reiterated that the Federal Reserve remains committed to bringing inflation back to its 2% target. He added that current conditions do not justify further monetary expansion. Importantly, he said the ongoing expansion of the Fed’s balance sheet should not be interpreted as quantitative easing, signaling that policymakers do not want recent actions misread as a fresh round of broad accommodation.
He also touched on artificial intelligence, saying business adoption is still largely experimental and has not yet had a meaningful impact on employment. The comment added to his broader view that technological change should be assessed carefully rather than assumed to be immediately transformative.
Bitcoin stays firm despite skepticism
Despite Kashkari’s criticism, Bitcoin remained firmly above $97,000, underscoring the market’s ability to maintain momentum even in the face of negative official commentary. The reaction suggests that crypto pricing continues to be shaped by a mix of investor sentiment, macro expectations, and institutional participation rather than by central bank rhetoric alone.
More broadly, the episode highlights a growing divergence: policymakers such as Kashkari remain wary of crypto’s usefulness, while market participants continue to push Bitcoin higher. That tension is likely to remain central to the digital asset narrative in the months ahead.