- Federal Reserve Chair Jerome Powell likened Bitcoin to digital gold.
- Powell’s statement spurred Bitcoin ETF inflows.
- Bitcoin’s legitimacy as a safe-haven asset reinforced.
Federal Reserve Chair Jerome Powell compared Bitcoin to digital gold during an August 2025 speech at Jackson Hole, asserting its speculative asset status akin to gold.
Powell’s analogy led to record institutional inflows into Bitcoin, reinforcing its perception as a safe-haven asset and prompting market decoupling from traditional equities.
Federal Reserve Chair Jerome Powell during his August 2025 speech compared Bitcoin to digital gold. This prompted record-level interest in Bitcoin ETFs and has played a role in decoupling the cryptocurrency from traditional equity indices.
Powell stated, “People use Bitcoin as a speculative asset. It’s like gold, only digital.” His comments are highly influential and followed globally, resulting in increased institutional participation in Bitcoin ETF markets.
The speech led to a significant rise in Bitcoin ETF inflows, with $1 billion recorded in a single day. Institutional investors rapidly reallocated funds from equities to Bitcoin, supporting its safe-haven status.
Financial markets observed a 2% rise in Bitcoin prices post-speech, while other cryptocurrencies experienced mixed reactions. Discussions on Twitter and GitHub highlighted Bitcoin’s growing role as a portfolio asset.
Bitcoin’s distinction as a digital reserve asserts its potential in global financial portfolios. The U.S. government maintains a significant Bitcoin reserve and allows inclusion in retirement plans, signaling regulatory trust and broader adoption.
Historically, central bank comparisons of Bitcoin to gold have led to institutional investments. Market liquidity and trading volumes show a rising trend, supporting the narrative of Bitcoin as a macroeconomic hedge and robust investment. Jerome Powell once remarked, “People use Bitcoin as a speculative asset, right? It’s like gold. It’s just like gold, only it’s virtual, it’s digital. It’s not a competitor to the dollar.”
