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Bitcoin soared past $99,000 on Wednesday, fueled by comments from Federal Reserve Chairman Jerome Powell when he compared the cryptocurrency to gold.
Speaking at the New York Times DealBook Conference in Manhattan, Jerome Powell described Bitcoin as an important asset similar to gold, distancing it from the idea of a true currency.
Bitcoin is Gold’s Competitor
Although many Cryptocurrency enthusiasts see Bitcoin as an alternative to the USD, Powell affirmed that he does not share this view. When possible ask Regarding whether he invests in Cryptocurrency, Powell replied that he is not allowed to do so.
Industry leaders have long referred to Bitcoin as ‘digital gold.’ This is due to the yearly rise of BTC and its superiority over other fiat assets. In fact, several Bitcoin ETFs in the US market have surpassed their gold counterparts in less than a year of launch.
“It’s like gold but virtual. People don’t use it as a form of payment, or a store of value. It’s very volatile. It is not a competitor to the dollar, it is actually a competitor to gold,” Powell emphasized.
Powell’s statement comes as the new Trump administration is expressing possible moves in favor of digital assets. During his campaign, Trump embraced Cryptocurrency. He accepted donations in many tokens, including Bitcoin, presenting himself as a pro-Cryptocurrency candidate.
“Bitcoin is quickly being recognized as gold 2.0, even by traditional finance and governments. This is what a winner looks like,” writes famous Cryptocurrency advisor Dan Held on X (formerly Twitter).
In July, he promised to establish a national Bitcoin reserve. Trump’s Republican colleagues also supported the idea by proposing Bitcoin reserves at various state levels.
Meanwhile, Trump nominated Paul Atkins, a pro-Cryptocurrency lawyer, to head the SEC. Atkins previously served as a Republican SEC commissioner during the Bush administration.
The industry hopes his leadership can signal a shift toward more lenient Cryptocurrency regulations than outgoing SEC Chairman Gary Gensler, who will step down on January 20.
The price of Bitcoin, which had dropped below $94,700 earlier on Wednesday, has surged following these developments. The cryptocurrency has experienced a 135% surge this year, with its peak value reaching $99,768 in early November.
Overall, Jerome Powell’s comments on Bitcoin are another sign that financial institutions and government agencies are recognizing the potential of digital assets and their importance in transforming the economy. national economy.
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