Bitcoin Plunges Following Fed’s 'No to Bitcoin' Statement

[TomPluz]

Right now, Bitcoin is at the $96K zone after experiencing some corrections following the statement released by Federal Reserve Chairman Jerome Powell on the possibility of it owning Bitcoin after the idea floated by Trump and his allies on including Bitcoin on the nation's strategic reserve.

According to the law, the FED is not allowed to own Bitcoin (BTC) under the Federal Reserve Act. Of course, Congress can change law if it can be able to muster the necessary support needed. Another idea that others are looking into is for the Treasury of USA getting into Bitcoin so there is no need for the involvement of FED, in the first place.

Jerome Powell has dismissed speculation that the Fed might be involved in creating a national Bitcoin reserve, stressing that current regulations do not allow the US central bank to own the world’s largest cryptocurrency.

I am just wondering...do you think Jerome Powell is emerging to be the face of the anti-Bitcoin force that will have some serious influence under the coming Trump administration?

[Baofeng]

I'm not sure if Powell will be the face, but it just shows that the FED doesn't like Bitcoin simply as that. And will used all it's power not to let it be a strategic national reserved in the US despite Trump's statement.

So let's see how it goes for next year after Trump assumes office. There could be some conflict between the two and again, I'm not a US citizen so I don't know what is the take here. Maybe US Congress can approved law to make it officially?

[Nheer]

I'm not sure if Powell will be the face, but it just shows that the FED doesn't like Bitcoin simply as that. And will used all it's power not to let it be a strategic national reserved in the US despite Trump's statement.

So let's see how it goes for next year after Trump assumes office. There could be some conflict between the two and again, I'm not a US citizen so I don't know what is the take here. Maybe US Congress can approved law to make it officially?

This is serious, I don’t know why Powell sees to banned bitcoin but what will be the case now will bitcoin be acceptable in US after Trump resumes is office. This is really a very serious case. And bitcoin have been pumping so good after the support of Trump but will this scenario continue this way. This will really affect the market and the bull run will likely to run down. 

But why the sudden banned, many US citizens will be very upset and uncomfortable with the decision Powell brought, this is very disappointing. What will Trump do when he resumes his sit will he take action or will he be sitting down and watching?

[Freemind]

I think that after January of next year many things will change, as long as Trump keeps his words and Bitcoin becomes part of the US strategic reserves. I am inclined to think that what we are seeing now in the market is nothing more than a correction (necessary on the other hand) that had to come sooner or later. After all, we know that those laws could be changed to take over Bitcoin in a different way, or that other departments could take over without the FED having any responsibility. It would be very strange if Bitcoin were banned in any way.

[Faisal2202]

I am just wondering...do you think Jerome Powell is emerging to be the face of the anti-Bitcoin force that will have some serious influence under the coming Trump administration?

Whether he will be the face or not, that does not matter. The thing that matters is those who knew BTC couldn't be owned by FED under law must have seen this coming. I mean, the information was literally available on the internet and in some books too (not directly). That's why it is said that knowledge is power, so those who would have this knowledge must have sold before and taken entries back because they know just like you said, the rules can be changed.

TBH I did not listen to him live I was busy but I was just speculating the market my mistake I should have listen to him. Still it is not that bad news, in 24 hours there is another decision pending to made by Trump (i suppose) for debt cases (something like that) means we need just another catalyst to pump the market back and we will be back on track.

[Bobcrypto]

I am just wondering...do you think Jerome Powell is emerging to be the face of the anti-Bitcoin force that will have some serious influence under the coming Trump administration?

Whether he will be the face or not, that does not matter. The thing that matters is those who knew BTC couldn't be owned by FED under law must have seen this coming. I mean, the information was literally available on the internet and in some books too (not directly). That's why it is said that knowledge is power, so those who would have this knowledge must have sold before and taken entries back because they know just like you said, the rules can be changed.

TBH I did not listen to him live I was busy but I was just speculating the market my mistake I should have listen to him. Still it is not that bad news, in 24 hours there is another decision pending to made by Trump (i suppose) for debt cases (something like that) means we need just another catalyst to pump the market back and we will be back on track.

whatever the case may be, whether FED disascept the Bitcoin strategic reserve plans or no, there may be changes of the laws, because law are made by man, and at certain time, changes are necessary for growth and developments. I think that there may be some amendments in near future, hoping that as soon as Donald Trump resumes, the FED may agree to work on how to make amendments to the existing laws.

[Baofeng]

I'm not sure if Powell will be the face, but it just shows that the FED doesn't like Bitcoin simply as that. And will used all it's power not to let it be a strategic national reserved in the US despite Trump's statement.

So let's see how it goes for next year after Trump assumes office. There could be some conflict between the two and again, I'm not a US citizen so I don't know what is the take here. Maybe US Congress can approved law to make it officially?

This is serious, I don’t know why Powell sees to banned bitcoin but what will be the case now will bitcoin be acceptable in US after Trump resumes is office. This is really a very serious case. And bitcoin have been pumping so good after the support of Trump but will this scenario continue this way. This will really affect the market and the bull run will likely to run down. 

Let's say we understand where is he coming from, he is the FED chairman. But he could also be replace by Trump next year once he sits on the White House. So still there could be chance that we might see Bitcoin as reserve when Trump becomes the President.

But why the sudden banned, many US citizens will be very upset and uncomfortable with the decision Powell brought, this is very disappointing. What will Trump do when he resumes his sit will he take action or will he be sitting down and watching?

It's their job, Bitcoin for them is a very volatile asset and can't be considered as reserve like Gold or even USD. So there could be power struggle between the FED chairmanship and Trump himself.

[bitterguy28]

So let's see how it goes for next year after Trump assumes office. There could be some conflict between the two and again, I'm not a US citizen so I don't know what is the take here. Maybe US Congress can approved law to make it officially?

some may think that the president is the most powerful entity in the government particularly the us's but fed actually can stand on its own and its agreement to the president's policies is crucial i do not know if the congress will change the law for this but the best easiest scenario is if trump and the fed creates some kind of deal and they meet each other in the middle but i am not that worried since a lot of politicians in position next year are pro crypto

[yhiaali3]

It is true that the current regulations do not allow the US Federal Reserve to own Bitcoin as Jerome Powell says, but this can be changed. Are these regulations a holy book that cannot be changed? They are simply written by lawmakers, so they can be changed as needed.

Trump certainly knows this and will seek the necessary number of congressional votes to change these regulations to allow the US government to own Bitcoin as a strategic reserve. He will also certainly face opposition from Powell and some senators who do not like Bitcoin, but he will eventually succeed in passing the law, I believe.

[target]

I'm not sure if Powell will be the face, but it just shows that the FED doesn't like Bitcoin simply as that. And will used all it's power not to let it be a strategic national reserved in the US despite Trump's statement.

So let's see how it goes for next year after Trump assumes office. There could be some conflict between the two and again, I'm not a US citizen so I don't know what is the take here. Maybe US Congress can approved law to make it officially?

This is serious, I don’t know why Powell sees to banned bitcoin but what will be the case now will bitcoin be acceptable in US after Trump resumes is office. This is really a very serious case. And bitcoin have been pumping so good after the support of Trump but will this scenario continue this way. This will really affect the market and the bull run will likely to run down. 

Let's say we understand where is he coming from, he is the FED chairman. But he could also be replace by Trump next year once he sits on the White House. So still there could be chance that we might see Bitcoin as reserve when Trump becomes the President.

But why the sudden banned, many US citizens will be very upset and uncomfortable with the decision Powell brought, this is very disappointing. What will Trump do when he resumes his sit will he take action or will he be sitting down and watching?

It's their job, Bitcoin for them is a very volatile asset and can't be considered as reserve like Gold or even USD. So there could be power struggle between the FED chairmanship and Trump himself.

Weeks before this FED announcement Trump assured he won't remove Jerome Powell as Fed chair. The next week Powell speaks for the update about Fed not allowed to own BTC.

It sounds like this is the reason for the new dump of the market already. If the next announcing is banning of BTC or government coercing people to sell their BTC to the government, this is history repeating itself during 1920 recession.

[bitterguy28]

It sounds like this is the reason for the new dump of the market already. If the next announcing is banning of BTC or government coercing people to sell their BTC to the government, this is history repeating itself during 1920 recession.

this sounds very conflicting trump has been hyping up bitcoin and telling everyone about his plans making it one of the biggest plans of his during his election campaign from what i know it is really part of the law that fed can’t have bitcoin but if trump were actually serious about his plans on bitcoin he wouldnt ban it and would instead use it for the betterment of the country i am expecting him to find a way around this fed issue i am not too worried

[hugeblack]

The Federal Reserve is supposed to be an independent authority away from the influence of the President of the United States, so unless there is a consensus in the Senate and the House of Representatives and enough support to create a bill that forces the Federal Reserve to start with a Bitcoin reserve, I do not think anything will change.

[Zed0X]

I am just wondering...do you think Jerome Powell is emerging to be the face of the anti-Bitcoin force that will have some serious influence under the coming Trump administration?

I don't think he's anti but he may be afraid of how things would turn up once bitcoin becomes part of the Federal reserves. He seems like a man who prefers stability over policy changes. He probably prefers Gold but he also acknowledges that bitcoin is a competitor of the said asset.

[target]

It sounds like this is the reason for the new dump of the market already. If the next announcing is banning of BTC or government coercing people to sell their BTC to the government, this is history repeating itself during 1920 recession.

this sounds very conflicting trump has been hyping up bitcoin and telling everyone about his plans making it one of the biggest plans of his during his election campaign from what i know it is really part of the law that fed can’t have bitcoin but if trump were actually serious about his plans on bitcoin he wouldnt ban it and would instead use it for the betterment of the country i am expecting him to find a way around this fed issue i am not too worried

This is just if Trump hasn't inaugurated. Upon watching what has been on the news, the  confusion of people in US about the government.  FED can decide something like no ownership of BTC while Trump says something against It. Some political analyst says Trump may not be able to sit in the office, his enemies are doing everything for him to fail whenever he does sit in the office.

FED not cutting rates in 2025 may mean sideways movement of BTC price or it probably down trend because No rate cuts is likely interpreted as increasing rates.

[MrSpasybo]

This is just if Trump hasn't inaugurated. Upon watching what has been on the news, the  confusion of people in US about the government.  FED can decide something like no ownership of BTC while Trump says something against It. Some political analyst says Trump may not be able to sit in the office, his enemies are doing everything for him to fail whenever he does sit in the office.

FED not cutting rates in 2025 may mean sideways movement of BTC price or it probably down trend because No rate cuts is likely interpreted as increasing rates.

Well, it seems we have a slight misunderstanding here. Currently, Trump plan is to include BTC in the US reserves, and this asset will be held by the Treasury Department. The FED has never held assets like gold or BTC and they have no plans to hold BTC. The reporter who asked the question could be an insider working for whales to create FUD in the market and suppress BTC price by causing investors to misunderstand and doubt Trump statements.

If the FED has a negative impact on the crypto market, it is likely that the reduction in the number of interest rate cuts in 2025 is the direct cause. However, I think this caution is necessary because Trump may implement many new economic policies and the FED needs to be prepared for all scenarios. I still believe that BTC and crypto will continue to grow strongly in 2025 despite FED statements and interest rate cut schedules. If the FED wants to accept BTC, I don't think I would object it, I will say "OK, let do it!" ^^