Powell’s Remarks Often Chill the Bitcoin Market, Highlighting His Reputation as a “Naysayer”
One reason Jerome Powell is often viewed as a “naysayer” is his tendency to make comments that dampen the Bitcoin market. His remarks regarding the strategic Bitcoin reserve system hinted at by President-elect Trump underscored this stance.
During the press conference following the Federal Open Market Committee (FOMC) meeting, Powell explicitly stated, “We cannot own Bitcoin,” clearly rejecting the proposed plan. He further emphasized, “The legal issues surrounding Bitcoin ownership are matters for Congress to address, and the Federal Reserve has not sought any changes to the law,” signaling a lack of interest in participating in such a plan.
Following these remarks, the Bitcoin market experienced a sharp decline. Bitcoin, which had been trading in the six-figure range, plummeted significantly, highlighting the pronounced market impact. While Trump has shown a pro-cryptocurrency stance and Republican lawmakers have introduced specific bills, Powell’s cautious position has bolstered his image as an “anti-Bitcoin figure.”
Barclays also projected that “such plans will face strong resistance from the Federal Reserve,” further supporting the view that Powell is opposed to institutionalizing Bitcoin. This sentiment has become widely recognized within financial markets.
Powell’s statements have not only caused market disruptions but also solidified his role as a symbol of anti-Bitcoin sentiment among cryptocurrency advocates. His comments go beyond mere caution, signaling a broader skepticism toward cryptocurrencies as a whole.
