Bitcoin as “Digital Gold”: Fed Chair Powell Stirs Debate Amid Crypto Rally

Federal Reserve Chair Jerome Powell has once again emphasized his belief that Bitcoin serves as a speculative asset akin to gold, while dismissing its potential to rival the U.S. dollar. Speaking at the New York Times-hosted DealBook Summit on December 4, Powell remarked, “Bitcoin is just like gold—it’s virtual, it’s digital. It’s not being used as a form of payment or as a store of value. It’s highly volatile.” Powell’s comments echo statements he made in 2021, when Bitcoin traded at $58,200. Since then, Bitcoin has surged 70%, significantly outpacing gold’s 52% rise over the same period. Despite this, Powell dismissed notions that Bitcoin reflects diminishing faith in the Federal Reserve or the U.S. dollar, asserting, “I don’t think that’s how people think about it.” While Powell clarified that he does not own Bitcoin—citing Federal Reserve restrictions—he maintained a pragmatic stance on cryptocurrency firms partnering with banks. His primary concerns centered on safeguarding consumer protection and ensuring that such collaborations do not compromise the financial health of institutions. Bitcoin Surpasses $100,000 as Pro-Crypto Sentiment Grows Powell’s remarks come against the backdrop of a Bitcoin rally that saw the cryptocurrency cross $100,000 level on December 5 . Market enthusiasm has been bolstered by Donald Trump’s presidential election victory in November, signaling a potential shift toward more crypto-friendly policies in Washington. The president-elect’s cabinet picks, including hedge fund manager Scott Bessent and Cantor Fitzgerald CEO Howard Lutnik for key economic roles, indicate a strong pro-crypto stance . Trump’s selection of crypto advocate Paul Atkins to replace Gary Gensler as SEC chair further underscores this sentiment. Trump has reportedly expressed dissatisfaction with Powell’s decision-making but Powell remains steadfast, stating he has no intention of resigning. This interplay between Trump’s crypto-positive policies and Powell’s cautious approach adds complexity to the evolving regulatory landscape. An Evolving Financial Ecosystem As Bitcoin continues to climb, surpassing gold in performance, its positioning as “digital gold” gains traction. Powell’s assertion that Bitcoin is a competitor to gold rather than the U.S. dollar highlights its growing role as a speculative store of value. With policy shifts and cabinet changes on the horizon, 2024 could mark a pivotal year for Bitcoin’s integration into traditional financial systems. The post Bitcoin as “Digital Gold”: Fed Chair Powell Stirs Debate Amid Crypto Rally appeared first on TheCoinrise.com .