Bitcoin surged past $99,000 on Wednesday, driven by Federal Reserve Chair Jerome Powell’s remarks 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, distancing it from the idea of a functional currency.
Bitcoin is a Competitor for Gold
While many cryptocurrency enthusiasts view Bitcoin as a potential alternative to the US dollar, Powell made it clear that he does not share this perspective. When asked if he personally invests in crypto, Powell remarked that he’s not allowed to.
Industry leaders have long considered Bitcoin to be the ‘digital gold.’ This is due to BTC’s year-on-year increase and dominance over other fiat assets.
In fact, several Bitcoin ETFs in the US market have already outgrown their gold counterparts within less than a year of launching.
“It’s just like gold only it’s virtual. People are not using it as a form of payment, or as a store of value. It’s highly volatile. It’s not a competitor for the dollar, it’s really a competitor for gold,” Powell said.
Powerll’s statement comes as the incoming Trump administration signals potential moves to support digital assets. During his campaign, Trump embraced cryptocurrencies. He accepted donations in several tokens, including Bitcoin, portraying himself as a pro-crypto candidate.
“Bitcoin is quickly being recognized as gold 2.0, even by traditional finance and the government. This is what winning looks like,” popular crypto advisor Dan Held wrote on X (formerly Twitter).
In July, he pledged to establish a national Bitcoin reserve. Trump’s Republican colleagues have also supported this idea by proposing Bitcoin reserves at different state levels.
Meanwhile, Trump has nominated Paul Atkins, a pro-crypto attorney, to lead the SEC. Atkins previously served as a Republican SEC commissioner during the Bush administration.
The industry is optimistic his leadership may signal a shift to more lenient crypto regulations compared to outgoing SEC Chair Gary Gensler, who will step down on January 20.
Bitcoin’s price, which had dipped below $94,700 earlier on Wednesday, climbed sharply following these developments. The cryptocurrency has experienced a 135% rally this year, with its highest value reaching $99,768 in early November.
Overall, Jerome Powell’s Bitcoin remarks are another indication of financial institutions and government bodies realizing the potential of digital assets and their importance in transforming the national economy.
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