During a recent conversation with CNBC's Andrew Ross Sorkin, Federal Reserve Chair Jerome Powell drew parallels between Bitcoin and gold.
"People use Bitcoin as a speculative asset, right? It's like gold—only it's virtual, it's digital," he said.
Powell has noted that people are not actually using the leading cryptocurrency as a form of payment or a store of value.
Alex DovbnyaBitcoin cannot be seen as a US dollar competitor due to its high volatility, according to the Federal Reserve head.
"It's highly volatile. It's not a competitor to the dollar. It's really a competitor for gold. That's really how I think about it," he said.
According to CoinGecko data, Bitcoin is currently changing hands at $96,843, adding 0.6% following Powell's remarks.
Powell calling Bitcoin digital gold might indicate that the central banker has changed his stance on the leading cryptocurrency. This also shows how mainstream Bitcoin's investment narrative has become.
"From this day forth, you are no longer permitted to ask me to waste my breath and energy on the investment case for Bitcoin. Because it's no longer 2014. In 2024, you can look up Powell, Fink, Druckenmiller and other credible voices of monetary policy and investment leadership," Jeff Park, an active portfolio manager at Bitwise Asset Management, said in response to the gold comparison.
Dan Burgin
Vladislav Sopov