'we're Not Allowed To Own Bitcoin': Crypto Price Drops After U.s. Federal Reserve Head Makes Surprising Statement

Federal Reserve Chairman Jerome Powell took a coiled retired of Bitcoin's humanities worth surge.

In a spot normal connected Wednesday, he said nan cardinal slope is not presently looking to build a reserve of Bitcoin, and projected only 2 title cuts for 2025.

"We're not allowed to ain Bitcoin. The Federal Reserve Act says what we tin own, and we're not looking for a norm change," Powell said. "That's nan benignant of constituent for Congress to consider, but we are not looking for a norm alteration astatine nan Fed."

Bitcoin prices fell overmuch than 5% pursuing nan spot conference. As of this morning, nan worthy sits astatine astir $95,000. On Tuesday, it deed $108,000.

Related: An International Perspective connected Bitcoin's Value Surge

Holding Bitcoin was floated by President-elect Donald Trump arsenic a measurement to enactment up of nan competition, per USA Today.

Prior to nan 2024 election, Trump said astatine a Bitcoin normal and said that he intends to make nan United States nan "crypto superior of nan outer and nan bitcoin superpower of nan world." The Trump family rolled retired a caller cryptocurrency business successful September and, this month, he named erstwhile PayPal executive David Sacks arsenic his "White House A.I. & Crypto Czar."

The announcement from Powell didn't conscionable effect Bitcoin. Coindesk reports that Ethereum's ether (ETH) dropped 10.8% and Dogecoin's DOGE took a 15%-20% loss. "Over nan past 24 hours — astir since yesterday's title determination by Fed policymakers — astir $1.2 cardinal worthy of leveraged crypto derivatives trading positions personification been liquidated crossed each assets," writes Krisztian Sandor.