Jerome Powell’s Bitcoin comments raised the price of $99,000

Bitcoin rose above $99,000 on Wednesday, following comments by Federal Reserve Chairman Jerome Powell comparing the cryptocurrency to gold.

Speaking at the New York Times Delbooke conference in Manhattan, Jerome Powell moved away from the idea of ​​a functional currency and described it as a significant asset similar to gold.

Bitcoin is a competitor to gold.

While many cryptocurrency advocates see Bitcoin as a viable alternative to the US dollar, Powell has made it clear that he does not share that view. When asked if he personally invests in crypto, Powell said he is not allowed to.

Industry leaders consider Bitcoin to be ‘digital gold'. This is due to BTC's year-over-year increase and dominance over other fiat assets.

In fact, several Bitcoin ETFs in the US market have outperformed their gold counterparts less than a year since their launch.

“Like gold, it's just an illusion. People don't use it as a form of payment or as a store of value. It is very flexible. It's not a dollar competitor, it's actually a gold competitor,” Powell said.

Powell's statement comes as the Trump administration hints at potential moves to support digital assets. During the campaign, Trump embraced cryptocurrency. Describing himself as a pro-crypto candidate, he accepted donations in many tokens, including Bitcoin.

“Bitcoin is quickly being recognized as gold 2.0 by traditional finance and even government. This is what winning looks like,” wrote Dan Held, a prominent crypto consultant, on X (formerly Twitter).

In July, he promised to establish a national Bitcoin reserve. Trump's Republican colleagues have supported this idea by proposing bitcoin reserves at various state levels.

Meanwhile, Trump appointed Paul Atkins, a pro-crypto attorney, to lead the SEC. Atkins previously served as a Republican SEC commissioner during the Bush administration.

The industry hopes his leadership will signal a shift toward more liberal crypto regulations compared to SEC Chairman Gary Gensler, who will step down on January 20.

The price of bitcoin, which was below $94,700 earlier on Wednesday, rallied sharply following these developments. The cryptocurrency experienced a 135% rally this year, reaching its highest price of $99,768 in early November.

Overall, Jerome Powell's Bitcoin comments are another indication that financial institutions and government bodies have recognized the potential of digital assets and their importance in transforming national economies.