In January, the Securities and Exchange Commission voted to list bitcoin ETFs
Bitcoin briefly surged past $100,000 for the first time this week before dipping below the mark yesterday. But the cryptocurrency’s growth this year has been nothing short of marvelous.
The historic rally may have gotten an unexpected boost from Federal Reserve Chair Jerome Powell.
Speaking at the DealBook Summit on Wednesday, Powell called bitcoin a “speculative asset” rather than a payment method or rival to the US dollar. He said the digital currency is “really a competitor for gold.”
Bitcoin jumped 3% on Thursday, hitting $103,000 before pulling back.
In January, the Securities and Exchange Commission voted to list bitcoin ETFs, allowing mainstream investors to trade bitcoin as quickly as stocks and mutual funds. The crypto’s value has more than doubled since then.
While not an endorsement, the comparison gave bitcoin a credibility bump as a major asset.
Bitcoin’s rally also follows other developments, including President-elect Donald Trump’s pro-crypto stance. The digital currency has soared nearly 50% since his November 5 election win.
Additionally, Trump’s nomination of crypto advocate Paul Atkins to lead the SEC suggests a friendlier regulatory environment, contrasting with outgoing SEC Chair Gary Gensler’s critical approach.
Gold, meanwhile, has remained flat since the election, though it is up nearly 30% this year.