Bitcoin's Volatility Raises Doubts Over Its Role as a Currency

Federal Reserve Chair Jerome Powell recently expressed skepticism about Bitcoin's viability as a currency, emphasizing its high volatility and lack of use in transactions or as a store of value. Powell referred to Bitcoin as a "virtual gold," suggesting it competes more with gold than with the dollar. His comments were made during an interview at the New York Times DealBook Summit.

Powell also highlighted the Federal Reserve's commitment to safeguarding the banking system from the risks associated with cryptocurrencies. He stressed the importance of regulating interactions between banks and the crypto business to ensure bank safety. Additionally, Powell underscored the need for consumer protection, urging buyers to fully understand the risks involved in crypto investments.

These remarks come as Bitcoin approaches the significant milestone of $100,000, with current trading at $96,588, up by 0.69%. Ethereum also saw a 6% increase, trading at $3,836 as of 2:25 pm ET.