Federal Reserve Chairman Jerome Powell mentioned BTC in comparison to gold, leading to a rise in BTC prices.
According to The Block on the 4th (local time), Powell said at the New York Times DealBook event that "people are using BTC as a speculative asset, not as a means of payment," and "BTC is too volatile to be a store of value like the dollar." He emphasized that "BTC is virtual and digital, so it cannot replace the dollar," and "the competitor of BTC is gold."
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After Powell's remarks, BTC rose 7.9% for 10 hours, breaking the $10,000 mark. The current market capitalization of BTC is $2.433 trillion, ranking 7th among global assets.
At the event, Powell said that "transactions between virtual asset companies and banks can be allowed as long as they do not undermine the soundness of existing banks," and "the Fed will not directly regulate virtual assets." When asked if he personally intends to own virtual assets, he replied, "I can't do that."
In 2021, Powell said "the Fed will not ban BTC." Last June, he told lawmakers that "BTC is having a persistent effect."
Meanwhile, regarding criticism of the Fed's monetary policy by former President Donald Trump, Powell said last month that "the Fed is designed to be independent from political pressure" and that he will serve out his term despite pressure from Trump to resign.
