Jerome Powell Dismisses BTC
The price of bitcoin dropped to a low of $52,900 earlier today as market participants digest the latest news echoing around the crypto market. Federal Reserve Chairman Jerome Powell took part in a virtual discussion yesterday in which he commented on the crypto market and bitcoin. In his words, bitcoin is “highly volatile and therefore not really useful as a store of value”. He also rejected the idea that bitcoin could replace the US dollar as a means of payment, saying that bitcoin is more of a “substitute for gold rather than the dollar”.
Heavy selling pressure weighed on the price on Monday and bitcoin declined by roughly 6%. The current price is relatively unchanged from yesterday’s closing price and bitcoin is hovering around $54,500, following a pullback of nearly 3% from its session low on Tuesday. Year-to-date, bitcoin remains in a strong bullish trend, up over 85% since January.
Bitcoin Struggles for Momentum
Bitcoin has been struggling in recent days to climb over the milestone of $60,000 that was reached for the first time in mid-March. Since the all-time top, the price has been fluctuating in a range between $54,000 and $59,500 as market participants are looking for new reasons to embark on another wild ride North in search of new highs. For the previous three days, bitcoin has been trading in negative territory, awaiting new developments.
The macro picture for bitcoin remains largely positive. Even after Fed’s dismissal, mainstream acceptance continues to gain momentum. Payment processors, corporations, investment banks, and institutional investors are now involved with cryptocurrency. One of the latest companies to express interest in the crypto industry is TIME. The publisher with a 98-year history, owned by Marc Benioff, CEO of Salesforce, is looking for a chief financial officer who is “comfortable with Bitcoin and cryptocurrencies”. The job listing did not offer any information on the company’s interest in cryptocurrency.