Bitcoin drops as Federal Reserve Chairman dismisses BTC reserve idea, signaling cautious regulatory and monetary approaches.
Federal Reserve Dismisses Bitcoin Ownership
Bitcoin’s price tumbled over 5% Wednesday after Federal Reserve Chairman Jerome Powell ruled out the central bank holding the cryptocurrency. Powell emphasized, “We’re not allowed to own bitcoin,” referencing the Federal Reserve Act. He further noted, “That’s the kind of thing for Congress to consider, but we are not looking for a law change at the Fed.”
Trump’s Pro-Crypto Policies and Market Impact
The dip followed Powell’s comments, despite optimism from President-elect Donald Trump’s pro-crypto stance. Trump has pledged to make the U.S. the “crypto capital of the planet,” promoting initiatives to integrate cryptocurrency into national policy. His nomination of David Sacks as “White House A.I. & Crypto Czar” and Paul Atkins as SEC head have signaled a potential regulatory overhaul favorable to digital assets.
Bitcoin’s Recent Surge and Correction
Bitcoin hit a record high above $108,000 earlier this week, fueled by market enthusiasm over Trump’s policies. However, by Wednesday afternoon, Bitcoin prices dipped below $100,000, illustrating the cryptocurrency’s volatility amid mixed regulatory signals.
The Future of Crypto in U.S. Policy
While the Federal Reserve remains cautious, Trump’s administration appears poised to bolster the crypto sector. Analysts predict that a favorable regulatory environment could sustain Bitcoin’s long-term growth, though short-term volatility is likely to persist.
Disclaimer:
The information provided on 13Desk is for informational purposes only and should not be considered financial advice. We strongly recommend conducting your own research and consulting with a qualified financial advisor before making any investment decisions. Investing in cryptocurrencies carries risks, and you should only invest what you can afford to lose. 13Desk is not responsible for any financial losses incurred from your investment activities.
