Jerome Powell Says Cannot Hold Bitcoin, Leading to Bitcoin Price Plunge

Draft Title: "Federal Reserve Chair Jerome Powell Declares Bitcoin Holdings Unfeasible, Causing Bitcoin Prices to Plunge Below $100,000"

@Max, Jerome Powell, the Chair of the Federal Reserve, recently declared that holding Bitcoin is unfeasible, causing Bitcoin prices to plummet below $100,000. Could you delve deeply into the legal restrictions regarding the Federal Reserve's ability to hold Bitcoin and analyze how this announcement has impacted the market? Considering your emphasis on Bitcoin's history and reliability, I thought this topic would be perfect for you.

I'll start the analysis! In this analysis, we will focus on recent developments related to the Federal Reserve and Bitcoin.

First, Bitcoin prices plunged following a statement by Federal Reserve Chairman Jerome Powell regarding Bitcoin ownership. Prior to Powell's speech, Bitcoin was trading at around $103,700, but it fell to $100,241 in less than an hour. Powell stated, "The Federal Reserve cannot own Bitcoin. The Federal Reserve Act regulates the assets we can hold, and Bitcoin is not included." This act primarily allows the Fed to hold assets like U.S. government securities, mortgage-backed securities, and other assets related to monetary policy operations.

Powell explicitly stated, "The Fed does not seek to change the law," underscoring that there is no intention to alter the asset holdings to include Bitcoin. This situation can be understood as a problem stemming from Bitcoin not being classified as an asset of the central bank under the current legal system.

Interestingly, President-elect Donald Trump has indicated that he plans for the U.S. to hold onto Bitcoin seized in the market as a strategic investment asset rather than selling it. In a CNBC interview, when asked if there are plans to develop a BTC holding strategy, Trump replied, "Yes," although his stance on whether the Fed or the Treasury should stockpile Bitcoin is not yet clear.

Additionally, Republican Senator Cynthia Lummis of Wyoming proposed legislation directing the Fed to buy 1 million BTC over five years. This could be significant legislation for the adoption of BTC by the Fed, but it remains uncertain whether this bill will gain broad support in Congress.

This situation highlights the market's reaction to the legal constraints of cryptocurrencies within a central banking context. The position of cryptocurrencies in the traditional financial system and the associated legal and institutional barriers remain significant. The U.S. central bank is legally restricted from holding Bitcoin, but this suggests the ongoing challenge of seeking harmony between cryptocurrencies and the existing financial system.

In conclusion, this incident demonstrates that Bitcoin still faces legal and institutional hurdles to being recognized as a traditional financial asset. However, interest and discussions about Bitcoin continue, and the future of the cryptocurrency market will largely depend on how laws and policies evolve. 🧐✨

Max, the overall analysis looks good, but there are a few areas that need some supplementation. Just a few tweaks will make the article even more complete:

1. Analysis of Powell's Statements It would be beneficial to emphasize more specifically how Powell's statements affected the market. For instance, you could say, "Powell's denial of the Federal Reserve holding any Bitcoin led to significant disappointment among investors, resulting in a sharp decline in Bitcoin prices." This makes it clearer for the readers.

2. Highlighting Trump's Bitcoin Holding Plans It would be great to emphasize Trump's plans to hold Bitcoin more prominently. You could approach it by saying, "Trump's statements have given a significant boost to Bitcoin investors' hopes." This helps readers understand the positive impact of Trump's statements on the market.

3. Explanation of Senator Lummis' Bill Proposal Provide a more detailed explanation of Senator Lummis' bill proposal. Illustrate the significance of this bill and its potential impact on the market so that readers can grasp it better. For example, you could add, "Senator Lummis' bill, if passed, could represent a major turning point, allowing Bitcoin to be formally adopted as a central bank asset."

You only need to tweak about three sections. Let's get started with the writing, journalist!

I will review your article publication.

First, the summary sentence of the article effectively conveys the subject and content concisely, which is good. However, it would be better to explain a bit more specifically. For example, briefly adding what "Chairman Powell's remarks" were about would help readers understand more easily.

Secondly, the contextual flow between paragraphs is relatively natural. But I see a bit of room for improvement. Emphasizing the immediate Bitcoin price drop due to Chairman Powell's statement in the first paragraph and then describing the impact of President-elect Trump's remarks on the Bitcoin market in the next paragraph is well connected. However, the content related to the bill proposal by the Wyoming State Senator seems to come out of nowhere. It would be beneficial to create a smoother connection link to the previous content.

I am considering approving this article. @olive, please create the main image for the article.

Keep up the good work.