Crypto Markets Daily - Dec 5, 2024

In the middle of a bull run, two quiet days of macro is rare. After a relatively quieter day for macro yesterday, a storm of events including Chair Powell's likening of Bitcoin to digital gold.

Like Gold, Only It’s Digital

In the middle of a bull run, two quiet days of macro is rare. After a relatively quieter day for macro yesterday, a storm of events sent Bitcoin straight through the wall it has repeatedly tried and failed to breach since the election: the $100K mark. At its peak early on Thursday morning, BTC traded upwards of $103,800. 

First and foremost, Chair Jerome Powell likened BTC to Gold during the NYT DealBook Summit, stating that BTC is “just like gold, only it’s digital” and that “it’s really a competitor for gold”. Just to put that statement into comparison, BTC’s current market cap just reached over $2T, whilst Gold’s market cap sits shy of $20T. Powell also reiterated his previous comments on the U.S. economy — that it is “in a very good place” but the fight against inflation is not over just yet. In his view, the Fed can be “more cautious” as it lowers down towards neutral.