Federal Reserve Chair Jerome Powell compared Bitcoin to gold, describing it as "digital gold" during an announcement on Wednesday. Despite this comparison, Powell emphasized that Bitcoin is not considered a rival to the US dollar, downplaying concerns that it could disrupt the traditional fiat system.
Bitcoin reacted positively to Powell’s comments, experiencing a rally in its market value. However, the cryptocurrency once again failed to breach the significant $100,000 psychological milestone, continuing to trade below this level.
Powell’s remarks highlight a growing acceptance of Bitcoin’s role as a digital asset and store of value akin to gold, while maintaining a clear distinction from national currencies like the dollar. This sentiment is reflective of a broader trend in the perception and regulatory stance towards cryptocurrencies among financial policymakers.