Bitcoin and cryptocurrency prices once again swung above $99,000 Wednesday after President-elect Donald Trump announced his nominee to lead the Securities and Exchange Commission, and after Federal Reserve Chair Jerome Powell likened the digital asset to gold.
Powell, while speaking at the New York Times DealBook Summit on Wednesday, said that bitcoin is a competitor to gold, and not the U.S. dollar.
"People use bitcoin as a speculative asset. It's like gold, it's just like gold — only it's digital. People are not using it as a form of payment or a store of value," he said. "It's highly volatile. It's not a competitor for the dollar; it's really a competitor for gold. That's really how I think about it"
Powell's comments came after President-elect Trump nominated conservative, crypto-friendly lawyer Paul Atkins to lead the Securities and Exchange Commission.
Trump Appointments Help Boost Bitcoin Closer To $100,000
Atkins previously served as a Republican member of the SEC during the Bush administration, and has worked as co-chairman of crypto advocacy group Token Alliance since 2017, according to reports.
As head of the SEC, Atkins is expected to take a looser stance to cryptocurrency regulation than predecessor Gary Gensler. Gensler announced in late November that he would step down as SEC chair on Jan. 20, when Trump takes office.
"Paul is a proven leader for common sense regulations," Trump wrote on his Truth Social media site. "He believes in the promise of robust, innovative capital markets that are responsive to the needs of Investors, & that provide capital to make our Economy the best in the World. He also recognizes that digital assets & other innovations are crucial to Making America Greater than Ever Before."
Bitcoin Price Climbs
Bitcoin rebounded above $99,000 late Wednesday on the Trump appointment and Powell's comments, after sliding below $94,700 midday. The world's largest cryptocurrency has rallied 135% so far this year and hit a record high of $99,768 in early November.
Bit Digital led bitcoin miners with a 13% jump on the day. Iren surged more than 10%. CleanSpark, Core Scientific, Riot and Hut 8 saw gains ranging from 5% to 8%.
The iShares Bitcoin Trust and other spot bitcoin ETFs swung about 3.6% higher Wednesday.
Coinbase popped 7% Wednesday.
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