The price of Bitcoin is currently on the rise, testing the $100,000 mark as investors closely watch the market. This surge comes after Federal Reserve Chair Jerome Powell made a statement regarding the central bank’s stance on holding BTC.
Powell, in a press conference following the Fed’s decision to lower key interest rates, addressed questions about the possibility of the Fed building a Bitcoin reserve. He explained that current laws prohibit the central bank from holding Bitcoin, citing the Federal Reserve Act which outlines the types of assets the Fed can own.
According to Powell, only a congressional act can change the laws to allow the Fed to buy BTC, a move he expressed no interest in pursuing. This statement caused a slight dip in Bitcoin’s price, dropping from around $103,700 to $100,241 in a short span of time.
President-elect Trump has also hinted at a shift in the US government’s approach to Bitcoin, suggesting a strategic approach to holding the asset as an investment rather than selling it on the open market. While Trump has expressed interest in building a strategic BTC reserve, he has not yet indicated whether he believes the Fed or Treasury Department should accumulate Bitcoin.
Senator Cynthia Lummis of Wyoming has taken a proactive approach by introducing legislation that would direct the Fed to buy one million BTC over a five-year period. The outcome of this proposed legislation remains uncertain as it awaits congressional approval.
As the debate around Bitcoin and government reserves continues, it is clear that the cryptocurrency market is attracting attention from key players in the financial and political spheres. Stay updated on the latest developments by subscribing to receive email alerts and following The Daily Hodl on social media platforms.
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