Jerome Powell Bitcoin Remarks Boost Price Past $99,000
Bitcoin surged above $99,000 on Wednesday, driven by comments from Federal Reserve Chairman Jerome Powell comparing the cryptocurrency to gold.
Jerome Powell, speaking at the New York Times DealBook Summit in Manhattan, described Bitcoin as a significant asset similar to gold, making it far removed from the concept of a functional currency.
Bitcoin is a competitor to gold
Although many cryptocurrency enthusiasts view Bitcoin as a potential alternative to the U.S. dollar, Powell made it clear He disagrees with this view. when ask Powell said that if he personally invested in cryptocurrencies, he would not be allowed to do so.
Industry leaders have long considered Bitcoin “digital gold.” This is due to BTC’s year-over-year growth and dominance relative to other fiat assets.
Actually, Multiple Bitcoin ETFs The U.S. market has outgrown their Gold peers Less than a year after launch.
“It’s just like gold, except it’s virtual. People are not using it as a payment method or a store of value. It’s very volatile. It’s not a competitor to the dollar, it’s a competitor to gold,” Powell said .
Powell’s statement comes after Incoming Trump administration hints at possible actions to support digital assets. During the campaign, Trump embraced cryptocurrencies. he accepted Donate multiple tokensIncluding Bitcoin, portraying itself as a pro-cryptocurrency candidate.
“Bitcoin is quickly being recognized as Gold 2.0 and even recognized by traditional finance and governments. This is what winning looks like.” Dan Held, Popular Cryptocurrency Advisor wrote on X (formerly Twitter).
In July, he pledged to create a state Bitcoin Reserve. Trump’s Republican colleagues also support the idea, proposing Bitcoin reserves at different state levels.
at the same time, Trump nominates Paul AtkinsA pro-cryptocurrency lawyer leading the SEC. Atkins previously served as a Republican SEC commissioner during the Bush administration.
There is optimism in the industry that his leadership could mean a shift to looser cryptocurrency regulations compared to the outgoing SEC chairman’s Gary Genslerhe will step down on January 20th.
Bitcoin priceIt had fallen below $94,700 earlier on Wednesday, but the price climbed sharply following these developments. The cryptocurrency has experienced a 135% rise this year, with its peak value reaching $99,768 in early November.
Overall, Jerome Powell’s Bitcoin comments once again demonstrate that financial institutions and government agencies recognize the potential of digital assets and their importance in the transformation of national economies.
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