Jerome Powell, Fed Chairman, Compares Bitcoin to Gold… BTC Surpasses $100,000

Bitcoin broke through the $100,000 mark on the 5th. This was triggered by Federal Reserve Chairman Jerome Powell's remarks comparing cryptocurrencies to gold. When Powell made the remarks, it had risen above $99,000, but a few hours later it eventually exceeded $100,000. Jerome Powell explained at the New York Times DealBook Summit in Manhattan that Bitcoin is a significant asset similar to gold, distancing it from the concept of a functional currency. Many cryptocurrency enthusiasts see Bitcoin as a potential alternative to the US dollar. Powell clearly stated that he does not share this view. When asked if he personally invests in cryptocurrencies, Powell said he is not allowed to. Industry leaders have long regarded Bitcoin as 'digital gold' due to its annual growth and dominance over other fiat assets. In fact, several Bitcoin ETFs in the US market have already exceeded gold-backed assets in less than a year since their launch. Powell said, "It's just like gold, but virtual. People don't use it as a medium of exchange. It's very volatile. It's not a competitor to the dollar, it's really a competitor to gold." Powell's remarks came amid suggestions that the Trump administration may support digital assets. Trump embraced cryptocurrencies during his campaign, accepting donations in various tokens including Bitcoin. "Bitcoin is rapidly being recognized as 'Gold 2.0' by traditional finance and governments. This is the shape of victory," popular cryptocurrency advisor Dan Held wrote on X (formerly Twitter). In July, he promised to establish a national Bitcoin reserve. Trump's Republican colleagues have also supported this idea by proposing Bitcoin reserves at various state levels. Meanwhile, Trump appointed Paul Atkins, a pro-cryptocurrency lawyer, as SEC chairman. The industry is optimistic that his leadership could signal a transition to more lenient cryptocurrency regulations than the outgoing SEC chairman Gary Gensler, who is set to step down on January 20. Bitcoin prices fell below $94,700 at the start of Wednesday, but have surged after these developments. Cryptocurrencies have risen 135% this year, reaching a record high of $99,768 in early November. Overall, Jerome Powell's remarks on Bitcoin indicate that financial institutions and government agencies are recognizing the potential of digital assets and their importance in the transformation of the national economy.