Key Points
- Federal Reserve Chair Jerome Powell compares Bitcoin to gold, highlighting its potential as a speculative asset.
- Bitcoin’s value surpasses silver, reaching $102K, but still significantly lower than gold’s $18 trillion.
Jerome Powell’s View on Bitcoin
Jerome Powell, the Federal Reserve Chair, recently shared his perspective on Bitcoin’s role in the financial world during the DealBook Summit on December 4th. He likened Bitcoin more to gold than to the U.S. dollar, emphasizing its potential as a store of value rather than a traditional currency. He stated, “People use Bitcoin as a speculative asset. It’s like gold—it’s just virtual and digital.”
Powell also addressed concerns about Bitcoin’s potential threat to the U.S. dollar and the Federal Reserve’s authority. He clarified that Bitcoin does not pose a challenge to the dollar’s strength as it remains highly volatile and is not widely used as a primary payment method or a stable store of value. He further highlighted that Bitcoin’s volatility limits its reliability in mainstream financial transactions.
Trump’s Pro-Crypto Plans
Powell’s comments come as the incoming Trump administration is expected to push for the legalization of digital assets. During his campaign, Trump accepted donations in Bitcoin, Ethereum, Dogecoin, and Solana, and pledged to establish a national Bitcoin reserve. However, Powell reiterated that the Federal Reserve does not see its role in regulating the cryptocurrency sector.
After Trump’s election win last month, Bitcoin saw a significant rally, hitting record highs and briefly surpassing $98,000 before stabilizing. As of December 4th, Bitcoin was trading around $96,800, and it recently surged past the $100K mark, reaching $102,436.85 after a 6.12% increase in just 24 hours. Bitcoin’s market capitalization is now $1.92 trillion, surpassing silver, which is valued at $1.75 trillion, making it the eighth most valuable asset globally. However, it still lags behind gold, which holds a market value of nearly $18 trillion.