Just-In: Fed Chair Jerome Powell Compares Bitcoin To Gold
Highlights
- Federal Reserve Chair Powell has ended the debate on Bitcoin versus Gold
- He noted that both assets are comparative and not like the US Dollar
- Bitcoin is gaining traction among traditional financial investors to rival gold as inflation hedge
Federal Reserve Chairman Jerome Powell has broken the silence on the broad comparison between Bitcoin, Gold, and the US Dollar. Speaking at the New York Times Dealbook Summit, he revealed that Bitcoin is a speculative asset that has a closer correlation to Gold rather than the US Dollar.
Settling the Bitcoin Versus Gold Feud
The Fed Chair shared his take on this analogy while speaking with CNBC’s Andrew Ross Sorkin. His statements directly addresses Bitcoin proponents who believe the coin could displace the US Dollar. Rather than tagging it along the USD, Jerome Powell said BTC’s major competitor is gold and not the greenback.
Jerome Powell Live at DealBook Summit 2024 https://t.co/rw4fWXJioI
— Andrew Ross Sorkin (@andrewrsorkin) December 4, 2024
This statement marks a major shift in the recognition of Bitcoin as an asset class. The statement has stirred a debate in the broader market on what this means for the strategic Bitcoin reserve plan President-elect Donald Trump is nursing.
Over the past decade, Bitcoin’s role has evolved significantly. While the coin started as an asset to facilitate Peer-2-Peer payments, it has since grown to become a viable hedge against inflation. The comparison between BTC and gold hinges on this, considering the latter has served as a reliable store of value for centuries.
Another major narrative Bitcoin proponents are pushing over gold is its growth rate. While both assets have recorded multiple All-Time Highs (ATH) thus far this year, BTC has outperformed it in Year-to-Date (YTD) gains.
At the time of writing, BTC price was changing hands for $98,825.64, up by 3.24% in 24 hours. Comparatively, gold price has inked a 0.34% growth to $2,649.08.
Growing BTC Adoption By Institutions
Considering its age ang relevance, many institutional investors like Robert Kiyosaki still advocate for gold. However, there is a significant growth in the number of corporate investors buying Bitcoin.
MicroStrategy is leading the corporate adoption drive of the digital currency. As reported earlier by Coingape, the business intelligence and software firm increased its Bitcoin holdings to 402,100 units earlier this week. This massive boost comes in after the firm bought 15,400 BTC for $1.5 billion.
After about 2 decades that gold ETF products went live, spot Bitcoin ETF products secured approval earlier this year. This product has served as a major channel for traditional investors like Wells Fargo and Susquehanna International Group with BTC positions.
- Will Bitcoin Rally as JPMorgan Tips Fed To End QT at FOMC Meeting?
- White House Crypto Czar Backs Michael Selig as ‘Excellent Choice’ To Lead CFTC
- Ripple Explores New XRP Use Cases as Brad Garlinghouse Reaffirms Token’s ‘Central’ Role
- Kyrgyzstan Adds Binance Coin (BNB) to National Crypto Reserve, CZ Confirms
- Ripple-Backed Evernorth Grows XRP Treasury to $1B Ahead of Nasdaq Listing
- Analyst Eyes Key Support Retest Before a Rebound for Ethereum Price Amid $93M ETF Outflows and BlackRock Dump
- Bitcoin Price Eyes $120K Ahead of FED’s 98.3% Likelihood to Cut Rates
- PEPE Coin Price Prediction as Weekly Outflows Hit $17M – Is Rebound Ahead?
- HBAR Price Targets 50% Jump as Hedera Unleashes Massive Staking Move
- Chainlink Price Outlook: Analyst Predicts $100 as Reserve Adds 63K LINK
- SUI Price Prediction as TVL and Monthly DEX Volume Hit All-Time Highs- What’s Next?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
