Bitcoin made a surprising treat for all crypto users on Tuesday, Feb. 11. The most popular cryptocurrency in the market has reached its highest value for the year 2020, with the ranging amount of $10,000.
Bitcoin has already been bullish for quite some time, which value played around $9,850. However, this week, with only at least after an hour, Bitcoin prices soared high, reaching a 5-digit amount. Why did this happen? Here’s why.
Jerome Powell and bitcoin’s bullish value
Reports said that Bitcoin’s bullish rate this week did not happen out of coincidence. In fact, Coindesk mentioned that United States Federal Reserve Chairman Jerome Powell made the bullish rate possible after what he said about digital currencies.
On Tuesday, Powell spoke to the U.S. House Financial Services Committee to talked about the digital currency ambitions of the state. When Congressman Bill Foster raised concerns about China’s leading digital currency industry, the Fed Chair immediately answered, saying that the Fed is planning to have a “lot of projects” that are bound to happen soon.
After this statement, the Bitcoin market surprisingly went wild, now reaching its first bullish rate for the last five months.
Powell made crypto users happy today!
Since Fed Reserve is the U.S Central Bank, the fact that its Chairman now acknowledges the importance of virtual currencies and how it can be a huge financial giant sometimes, made most crypto users positive with what comes next for online currencies– specifically for the U.S.
Though a lot of crypto users gave thanks to Powell online, the Fed Reserve Chair also clarified that he still has doubts about crypto, especially to its security and privacy concerns, once used by the entire country.
“A ledger where you know everybody’s payments is not something that would be particularly attractive in the context of the U.S.,” Powell told the committee.
Fed Reserve Chair Powell compared bitcoin to gold
Sorry to burst that bubble, but this is not the first time that Powell made a surprising positive remark for the prices of crypto– specifically Bitcoin.
In fact, in the half of 2019, Powell compared Bitcoin to gold and said that it could be its alternative since he sees these virtual currencies as a store of value.
“Really, almost no one uses bitcoin for payment; they use it more as an alternative to gold really. It’s a store of value; it’s a speculative store of value like gold,” said Powell.
However, compared before, Powell’s statements did not make Bitcoin soared high back then– thinking that there are other factors why Bitcoin reached highest on this week.
Admittedly, there can be a lot of reasons to explain Bitcoin’s bull. One from that is because of the spread of Novel Coronavirus around the world- which seemed to be a much better and accurate explanation.