The Chairman of the American Federal Reserve (Fed), Jerome Powellsurprised everyone at the New York Times DealBook Summit, by stating that Bitcoin (BTC) was not a competitor of the American dollar, but rather of l’or. This statement immediately went around the cryptosphere and even had an impact on the price of BTC. Explanations.
- Jerome Powell shocked at the DealBook summit by declaring that Bitcoin is not a competitor to the dollar, but to gold.
- This announcement caused Bitcoin to surge beyond $100,000, marking a historic turning point for the cryptocurrency.
Bitcoin: A new digital gold according to Jerome Powell
When asked about BTC and its potential role as a speculative asset, Powell claimed that first crypto is “like gold, but virtual and digital”. He added that Bitcoin is too volatile to be considered a store of value, but is used as a speculative asset.
“Bitcoin is like gold. It is not a competitor to the dollar, but to gold, except that it is digital. »
This statement marks a development in Powell's speech. In 2021, he indicated that the Fed would not ban Bitcoin, and in 2023, he suggested that cryptocurrencies had some “stability” as an asset class. However, this time he goes further by directly comparing BTC to gold. In response, the markets pushed Bitcoin beyond $100,000!
Powell's statement had an immediate effect on the market. Bitcoin jumped more than 2%briefly reaching 99 000 dollars before stabilizing around 98 500 dollars to then explode $100,000 and go up to 103,000.
With a market capitalization of nearly $1.95 trillionBitcoin now ranks as the seventh largest global asset, just behind gold and five major US companies.
Powell's comparison between Bitcoin and gold has also reignited the debate over BTC's role as ” digital store of value “. Although Powell highlighted Bitcoin's volatility, many cryptocurrency advocates see the comparison as validation of its role as a ” digital gold ».
Although Powell said he was “not not allowed » to own cryptocurrencies, his comments show that even the most cautious regulators recognize Bitcoin's growing role in the global financial landscape. As the queen of cryptos continues to grow in popularity, the question remains whether it will ever be able to rival gold as a true store of value.
