• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Editor's Pick What Fed chief Powell said about crypto that may have aided bitcoin’s rally to $100,000
Editor's Pick

What Fed chief Powell said about crypto that may have aided bitcoin’s rally to $100,000

by December 6, 2024
by December 6, 2024 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Bitcoin’s meteoric run may have gotten a little extra push from an unlikely source: Federal Reserve Chair Jerome Powell.

In comments Wednesday about the cryptocurrency, the central bank leader noted that he does not and cannot own any himself. In addition, he said the Fed’s role in regulating bitcoin and its competitors is limited.

However, he also maintained that bitcoin is not a challenge for traditional currencies such as the U.S. dollar but rather for gold.

“People use bitcoin as a speculative asset,” Powell told CNBC’s Andrew Ross Sorkin during the New York Times’ DealBook Summit. “It’s just like gold, only it’s virtual, it’s digital. People are not using it as a form of payment or as a store of value. It’s highly volatile. It’s not a competitor for the dollar, it’s really a competitor for gold.”

For those who watch the crypto markets, the Powell comments, whether unwittingly, provided a sense of legitimacy for bitcoin and helped drive it another leg higher. Bitcoin jumped 3% in morning trade Thursday, pushing over the $103,000 mark before easing slightly.

“We believe the Fed chair’s comparison of bitcoin to gold is a significant development as it introduces another level of credibility to bitcoin as a major asset in global markets,” said Joel Kruger, market strategist at LMAX Group, which runs an exchange for currency and crypto trading.

“The fact that gold is still about 10 times larger than bitcoin should offer additional insight into how much more room there is for bitcoin to grow from current levels,” he added.

Bitcoin rose sharply to start the year then largely traded in a volatile but fairly tight range — until Donald Trump won the Nov. 5 presidential election. Since then, it has soared close to 50% as the president-elect’s pro-crypto remarks fueled another price surge that took bitcoin past the $100,000 mark late Wednesday. By contrast, gold is about flat since the election, though it is up nearly 30% year to date.

To be sure, how much Powell’s comments helped propel the last move is unknown.

The remarks comparing it to bitcoin came the same day Trump made formal his widely anticipated intention to nominate financier Paul Atkins, also a strong crypto supporter, as chair of the Securities and Exchange Commission.

The position is a key regulatory post and could provide a smoother market ride, particularly since the current SEC leader, Gary Gensler, has been an opponent of the crypto industry.

This post appeared first on NBC NEWS
You Might Also Like
  • Big Lots files for bankruptcy protection as it promises to keep offering ‘extreme bargains’
  • Nonunion autoworkers are watching the UAW — and deciding whether they want in
  • George Soros hands control of his $25 billion empire to his son Alex
  • Department of Education error could lower U.S. students’ financial aid amount
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Two ETFs That Could Thrive Based on a Normal Yield Curve
next post
Dollar General tests same-day delivery as discounter chases Walmart

You may also like

Cut from projects, dropped by agents: How the Israel-Hamas war...

December 3, 2023

How Calvin Klein and Tommy Hilfiger got caught in Trump’s...

February 6, 2025

Delta cancels hundreds more flights as DOT opens probe

July 23, 2024

Nvidia CEO Huang says AI has to do ‘100 times...

February 28, 2025

UPS workers reach a tentative contract deal with management days...

July 27, 2023

Amazon to invest another $4 billion in Anthropic, OpenAI’s biggest...

November 23, 2024

Target stock falls 21% as big discounting effort falls short

November 21, 2024

Bitcoin is just another tech stock, not a market hedge,...

March 25, 2025

Starbucks imposes new limits on what baristas can wear under...

April 23, 2025

Mortgage refinance demand jumps to a 2-year high, as interest...

July 17, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Nvidia results spark global chip rally

      May 30, 2025
    • Boeing to resume airplane deliveries to China next month, ramp up Max production, CEO says

      May 29, 2025
    • Nuclear Power Trio: OKLO, SMR, and CCJ in Focus

      May 29, 2025
    • Analyzing SIL, USO, and NVDA: Could These Bullish Patterns Trigger?

      May 29, 2025
    • E.l.f. Beauty to acquire Hailey Bieber skin care brand Rhode in up to $1 billion deal

      May 29, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,764 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,470 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,450 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,430 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,307 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,104)
    • Investing (538)
    • Stock (2,578)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Nvidia results spark global chip rally

      May 30, 2025
    • Boeing to resume airplane deliveries to China next month, ramp...

      May 29, 2025
    • Nuclear Power Trio: OKLO, SMR, and CCJ in Focus

      May 29, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,104)
    • Investing (538)
    • Stock (2,578)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    From Diamond Head to Lake Tahoe,...

    April 1, 2023

    How Foot Locker is waging a...

    September 23, 2024

    OpenAI employees threaten to quit en...

    November 21, 2023
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here