Bitcoin achieved a significant milestone, surpassing the $100,000 mark. But this surge can be attributed to a combination of factors, including remarks made by Federal Reserve Chair Jerome Powell.
JUST IN:
Fed’s Powell says Bitcoin is just like gold, except it’s digital. pic.twitter.com/WDQ5alhi9Z
— Bitcoin Archive (@BTC_Archive) December 4, 2024
This milestone comes amid a significant bull run following the US presidential election, with President-elect Donald Trump promising a more crypto-friendly regulatory environment.
Powell’s Remarks: A Boost to Bitcoin’s Credibility
During a recent conference in New York, Federal Reserve Chair Jerome Powell made comments that inadvertently bolstered Bitcoin’s standing in the financial world.
Powell emphasized that while he does not personally own Bitcoin, he views it as a speculative investment similar to gold. He stated, “Individuals treat bitcoin as a speculative investment… It’s akin to gold, but in a virtual and digital format.”
By comparing Bitcoin to gold, Powell provided an unexpected layer of legitimacy to the cryptocurrency, reinforcing its status as a significant asset in the global marketplace.
Powell also highlighted the limited regulatory authority of the Federal Reserve over cryptocurrencies like Bitcoin, suggesting that they do not pose a threat to traditional currencies such as the US dollar.
Jerome Powell: “Bitcoin is just like gold, only its digital.”
Vladimir Putin: “Who can ban Bitcoin? Nobody.”
Donald Trump: “Never sell your bitcoin.”
Higher.
— Frank (@FrankAFetter) December 4, 2024
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Market Reactions: A Surge in Bitcoin’s Value
Following Powell’s remarks, Bitcoin experienced a notable increase in value. On Thursday morning, it surged by 4%, reaching over $103,000.
Market analysts have pointed out that Powell’s comparison of Bitcoin to gold is particularly significant given gold’s established position as a store of value.
Joel Kruger, a market strategist at LMAX Group, noted that this comparison adds credibility to Bitcoin and highlights its potential for growth, considering that gold’s market size is still about ten times larger than that of Bitcoin.
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