Federal Reserve Chairman Jerome Powell recently addressed Bitcoin's role in the financial market, comparing it to gold rather than the US Dollar.
Speaking at the New York Times Dealbook Summit, Powell stated that Bitcoin is a speculative asset more closely aligned with gold, not the greenback, a comment that has sparked debate about Bitcoin’s place in the broader economy.
Jerome Powell Live at DealBook Summit 2024 https://t.co/rw4fWXJioI
— Andrew Ross Sorkin (@andrewrsorkin) December 4, 2024
Powell’s statement highlights Bitcoin’s evolution from a peer-to-peer payment tool to a potential hedge against inflation, much like gold. While both Bitcoin and gold have reached record highs this year, Bitcoin has outperformed gold in year-to-date growth.
The rise in Bitcoin’s institutional adoption is also notable. Companies like MicroStrategy have significantly increased their Bitcoin holdings, with a recent $1.5 billion purchase of 15,400 BTC. Furthermore, the approval of spot Bitcoin ETFs earlier this year has provided a new avenue for traditional investors to gain exposure to Bitcoin.
This shift in institutional behavior signals growing acceptance of Bitcoin as a mainstream asset class. With major financial players increasingly incorporating Bitcoin into their portfolios, the landscape for digital assets is rapidly changing. As Bitcoin gains wider recognition as a store of value, it continues to challenge traditional notions of wealth preservation, positioning itself as a competitive alternative to gold for many investors.
Strategy Inc. (NASDAQ: MSTR) has announced the launch of its fourth perpetual preferred stock offering, marking a new phase in the company’s ongoing efforts to expand its Bitcoin treasury holdings.
According to new data shared by Bitcoin Magazine Pro, publicly traded companies now collectively hold over 844,822 BTC, valued at more than $100.5 billion, marking a historic milestone for institutional Bitcoin adoption.
Trump Media and Technology Group, the parent company of Truth Social, Truth+, and Truth.Fi, has officially disclosed that it now holds approximately $2 billion in Bitcoin and Bitcoin-related securities.
Michael Saylor’s Strategy has confirmed another major Bitcoin purchase, acquiring 6,220 BTC last week for approximately $739.8 million.