Key Takeaways
- Jerome Powell labeled Bitcoin as 'digital gold.'
- Powell dismissed Bitcoin as a rival to the US dollar.
- CME FedWatch predicts a 75% chance of a December rate cut.
Federal Reserve Chair Jerome Powell, speaking at the New York Times DealBook Summit, described Bitcoin as “digital gold” due to its speculative nature and volatility.
Powell dismissed the notion that Bitcoin competes with the US dollar, saying:
People use Bitcoin as a speculative asset, right? It’s like gold—only it’s virtual, it’s digital.
Powell emphasized that Bitcoin is not widely used as a form of payment or a reliable store of value, characteristics central to the dollar.
He stated:
People are not using it as a form of payment or a store of value.
While the Federal Reserve monitors how digital assets interact with the financial system, Powell clarified that the Fed does not directly regulate Bitcoin. He also disclosed that he does not own digital assets due to ethical restrictions associated with his role.
Beyond Bitcoin, Powell addressed the US economy, describing it as “in great shape” despite challenges with inflation and growth. The CME FedWatch Tool indicates a 75% probability of a December 18 rate cut to 4.25%-4.5%, following recent reductions totaling 75 basis points.
Jeff Park of Bitwise Asset Management hailed Powell’s comments as a mainstream acknowledgment of Bitcoin’s investment appeal. Meanwhile, Bitcoin saw a 2.13% price rise, trading at $98,050.
