Bitcoin ETFs have shown an increase in premarket, even as Federal Reserve Chair Jerome Powell made it clear that the central bank has no plans to accumulate Bitcoin BTC/USD.
What Happened: As per Benzinga Pro on Thursday, the Bitwise Bitcoin ETF BITB saw a rise of 1.08%, ARK 21Shares Bitcoin ETF ARKB increased by 1.41%, Grayscale Bitcoin Trust (BTC) GBTC climbed 1.32%, Fidelity Wise Origin Bitcoin Fund FBTC advanced 1.04%, and iShares Bitcoin Trust ETF IBIT gained 1.26%.
Powell, speaking after the Fed’s latest policy meeting, emphasized that the central bank is not allowed to own Bitcoin. He noted that any legal considerations about Bitcoin stockpiling would fall under Congress’s jurisdiction. His comments came amid discussions about a potential U.S. Strategic Bitcoin Reserve proposed by President-elect Donald Trump.
See Also: Crypto Analyst: Shiba Inu Price Set For Massive Surge, Could Go Up Sixfold
Despite the Fed’s position, Bitcoin’s value has been on the rise, driven by optimism over Trump’s pro-crypto policies. However, Powell’s statements did affect Bitcoin’s rally, which had been bolstered by expectations of a more lenient government stance. Bitcoin was trading at $102,085 after dipping below $100,000 on Wednesday, according to Benzinga Pro.
Republican Sen. Cynthia Lummis (R-Wyo.) has introduced legislation for a Bitcoin reserve, but such a plan would need congressional approval and might face opposition from the Fed, as highlighted by Barclays analysts.
Why It Matters: The backdrop to Powell’s comments includes a recent market upheaval following his hawkish outlook on interest rates. As reported, the U.S. stock market faced a significant selloff after Powell’s remarks, which CNBC's Jim Cramer described as causing "incredible panic" in the markets.
This reaction was triggered by Powell’s announcement of a 25-basis-point rate cut to 4.25%-4.5%, alongside signaling only two potential rate cuts in 2025, fewer than the four projected in September.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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