In response to the prospect of a national Bitcoin (BTC) reserve in the United States, Jerome Powell, the chairman of the Fed, indicated that the agency does not have the right to own bitcoins. Is this really the end of this project?
Update 12/19 11:40: The article has been updated to clarify that it is the Treasury Department which should manage a possible strategic reserve of Bitcoin, according to Cynthia Lummis’ proposal.
Jerome Powell Says Fed Cannot Have Bitcoin Reserve
With the election of Donald Trump last month, the prospect of a national Bitcoin (BTC) reserve in the United States seemed to be taking shape. However, Jerome Powell, Chairman of the Federal Reserve (Fed), has questioned this ideathrough a choice of words, could not be clearer, during a press conference on the country’s monetary policy:
“We are not allowed to own bitcoins. »
The person then clarified his point slightly, explaining that this is “the kind of thing Congress needs to consider, but we’re not looking to change the law at the Fed ».
???? What is Bitcoin (BTC)?
For the moment, neither Senator Cynthia Lummis, who is leading this reserve project, nor Donald Trump have reacted publicly to Jerome Powell’s comments.
Note, however, that the bill in question is supposed to delegate the management of this strategic reserve to the Department of the Treasury, and not to the Fed. Thus, Jerome Powell’s opinion should have little influence in whether or not this project materializes.
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A market that is suffering
Alongside this announcement, adds the backpedaling of Nayib Bukele in El Salvador facing pressure from the International Monetary Fund (IMF), leading to compromises on the Bitcoin law in the country. These two events combined triggered a slight correction in cryptocurrencies, with BTC down almost 3% since these announcements on Wednesday evening:
BTC price in hourly data
After briefly falling below $100,000, BTC ultimately used this threshold as support. As for other cryptocurrencies, however, we can notice more marked drops, notably on ETH with 4.2%, 6.7% for XRP or even up to 10% for LINK.
???? Also in the news — US Bitcoin ETFs now surpass gold ETFs in terms of assets under management
Despite the news being perceived negatively, these corrections do not seem worrying for the moment, and could simply be part of a recovery in the market. The coming days and weeks will allow us to better identify the short-term trend.
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Sources : Reuters, TradingView
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Since 2021, I have devoted my free time to seriously educating myself on cryptocurrencies in order to acquire maximum knowledge and credibility. I often have the opportunity to conduct interviews with influential figures in the blockchain industry. I also conduct in-depth analyzes on Web3 themes to offer exclusive content to Cryptoast readers.
Vincent Maire
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