Trump's 'BTC reserve' dream shattered? Fed Chairman Powell's 'one sentence' rocked the currency market

Jerome Powell, chairman of the Federal Reserve (Fed), stated on Wednesday that the Fed is not allowed to get involved in BTC and has no intention of participating in any actions to reserve BTC, nor is it seeking to change the current regulations.

Powell said at a press conference after the interest rate decision meeting on December 18th, 'We are not allowed to hold Bitcoin.'

Regarding the legal issues of the Fed holding BTC, Powell further pointed out, 'This should be decided by Congress, but we are not currently seeking to change existing regulations.'

After Powell made the above remarks, market confidence was greatly impacted, and the price of BTC quickly fell, briefly breaching the $100,000 mark this morning (19th).

Powell's statement in response to the question of whether the Fed will participate in the establishment of the 'BTC strategic reserve'. During his campaign, Trump proposed the creation of a 'BTC national strategic reserve' and even mentioned the possibility of using 200,000 BTC (approximately $21 billion) seized by law enforcement agencies as the reserve base. However, the details are still unclear.

Republican Senator Cynthia Lummis has proposed the BTC Reserve Act, suggesting that the U.S. Treasury Department purchase 200,000 BTC per year until the total reserve reaches 1 million BTC.

As for the source of funds for buying BTC, it could be deposits or gold reserves of the Federal Reserve. However, according to Barclays Bank's analysis, implementing this plan may require congressional approval and the issuance of new bonds. Analysts believe that this plan may face strong resistance from the Fed.

Bitcoin falls below $100,000! QCP Capital urges investors to hold onto their coins and wait until Trump takes office.

〈Did Trump's 'BTC reserve' dream shatter? Fed Chairman Powell's 'one sentence' rocked the currency market〉This article was first published in "Blocklike".