Bitcoin is Gold’s Digital Rival According to Fed Chair Powell Who Sparks Greater Crypto Buzz Amid BTC’s Latest $103K ATH 

Jerome Powell compares Bitcoin to gold, not the dollar, as its market cap nears $2 trillion, signaling growing interest.

Posted by by Austin Mwendia
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  • Fed Chair Powell sees Bitcoin as a competitor to gold, not the U.S. dollar, due to its digital nature.
  • Bitcoin surged 2% after Powell’s comments, nearing its all-time high, before settling at $98,500.
  • Bitcoin’s market cap now ranks 7th globally, trailing only gold and five top U.S. companies.

Jerome Powell the US Federal Reserve chairman has classified Bitcoin as a competitor to gold not to the US dollar. He made the statement while responding to questions at the New York Times DealBook Summit.  

Powell noted that it is still difficult to properly use bitcoin as a store of value because of the high volatility of the digital asset. He likened it to gold but noted its digital and speculative nature.

Powell shared that he does not own any cryptocurrency while speaking with journalist Andrew Ross Sorkin. His comments come as the U.S. government continues to examine cryptocurrency’s role in the financial system.

The crypto community on X quickly highlighted comparisons between Bitcoin and gold’s market caps. Powell’s remarks fueled debate about Bitcoin’s potential as a digital alternative to gold.  

Bitcoin Price Surges After Comments 

Following Powell’s statement, Bitcoin’s price jumped over 2%, reaching $99,000 and nearing its all-time high of $99,645. The price later settled at $98,500. Bitcoin’s market cap surged to $2.016 trillion, placing it seventh among global assets. It now trails gold and top U.S. companies like Nvidia and Meta. 

Bitcoin is currently trading at  $101,941 after breaching the $100,000 resistance level. The surge can be attributed to Trump appointing a crypto-friendly SEC to replace the outgoing Gary Gensler.

Source: Coinmarketcap

Bitcoin’s rise continues to ignite discussions about its role as a financial asset and its comparison to traditional stores of value. Powell referring to Bitcoin as digital gold could suggest that the central banker has shifted his perspective on the top cryptocurrency. This likewise illustrates the extent to which Bitcoin’s investment narrative has entered the traditional financial industries. 

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