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“The Federal Reserve cannot hold Bitcoin!” Powell's statement caused severe market turbulence
Federal Reserve Chairman Jerome Powell made it clear on Wednesday that the Fed does not intend to participate in holding Bitcoin or other cryptocurrencies. After the Federal Open Market Committee (FOMC) meeting, Powell pointed out that U.S. law prohibits the central bank from holding Bitcoin or any form of cryptocurrency. He emphasized that the functions and authority of the Fed do not include investments in the cryptocurrency space, and any such changes can only be made through Congress, but the Fed itself is not seeking such changes.
This statement comes after the Fed announced a 25 basis point interest rate cut, with the market's reaction to the cut being significant, leading to Bitcoin's price continuing to decline, currently trading near $100,000. Powell's statement also responds to the proposal of a “U.S. Bitcoin Strategic Reserve” put forth by President-elect Donald Trump. Trump suggested using 200,000 seized Bitcoins to establish a national reserve, promoting the U.S. leadership in the global cryptocurrency space.
Although this proposal is still in its preliminary stages, Trump has indeed been a strong supporter of cryptocurrencies and actively promoted government advocacy related to it. However, from the Fed's perspective, Powell reiterated that Bitcoin's extreme volatility makes it far from viable as a stable reserve currency. Historically, Powell has maintained a skeptical attitude towards Bitcoin, believing its volatility is too high to serve as a reliable monetary tool.
As Bitcoin's price continues to soar, but market uncertainty remains, how investors and regulators respond to the development of this emerging asset class is worth continued attention.
Want to keep up with these important dynamics in the crypto market? Follow Mr. Qiu to uncover the truth behind it all!
Federal Reserve Chairman Jerome Powell made it clear on Wednesday that the Fed does not intend to participate in holding Bitcoin or other cryptocurrencies. After the Federal Open Market Committee (FOMC) meeting, Powell pointed out that U.S. law prohibits the central bank from holding Bitcoin or any form of cryptocurrency. He emphasized that the functions and authority of the Fed do not include investments in the cryptocurrency space, and any such changes can only be made through Congress, but the Fed itself is not seeking such changes.
This statement comes after the Fed announced a 25 basis point interest rate cut, with the market's reaction to the cut being significant, leading to Bitcoin's price continuing to decline, currently trading near $100,000. Powell's statement also responds to the proposal of a “U.S. Bitcoin Strategic Reserve” put forth by President-elect Donald Trump. Trump suggested using 200,000 seized Bitcoins to establish a national reserve, promoting the U.S. leadership in the global cryptocurrency space.
Although this proposal is still in its preliminary stages, Trump has indeed been a strong supporter of cryptocurrencies and actively promoted government advocacy related to it. However, from the Fed's perspective, Powell reiterated that Bitcoin's extreme volatility makes it far from viable as a stable reserve currency. Historically, Powell has maintained a skeptical attitude towards Bitcoin, believing its volatility is too high to serve as a reliable monetary tool.
As Bitcoin's price continues to soar, but market uncertainty remains, how investors and regulators respond to the development of this emerging asset class is worth continued attention.
Want to keep up with these important dynamics in the crypto market? Follow Mr. Qiu to uncover the truth behind it all!
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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