Bitcoin as Digital Gold

🟠On December 4, U.S. Federal Reserve Chairman Jerome Powell stated that Bitcoin is a speculative asset functioning as digital gold. According to him, the cryptocurrency is unsuitable for payments or savings due to its high volatility and does not compete with the dollar but rather with gold.

🟠Powell emphasized the Federal Reserve’s preference to minimize the risks of banks interacting with the crypto industry. When asked whether he personally holds cryptocurrencies, the Fed Chair denied owning any, citing the restrictions of his position.

🟠On November 15, Powell’s remarks about maintaining tight monetary policy caused Bitcoin’s price to drop to $87,000, underscoring the Fed’s influence on the market through interest rates.