Donald Trump Gets Big Jolt on Plan of Bitcoin Reserve, Federal Reserve Says No

There is excitement in the crypto market after Donald Trump’s victory in the US presidential election last month. Trump had also hinted at creating a reserve of Bitcoin in America. Due to this, the price of this most popular cryptocurrency has increased significantly. However, the US Federal Reserve says it does not intend to join the government’s plan to create a large stock of Bitcoin.

“We are not allowed to buy Bitcoin,” the head of the Federal Reserve, Jerome Powell, said. On the legal issues regarding creating a reserve of Bitcoin, he said, “Congress has to consider this but we are not considering changing the law for this in the Federal Reserve.” The price of Bitcoin has increased more than double this year. Earlier this week, this most valued cryptocurrency had created a new high level of more than $1,08,000. However, after this comment by the Federal Reserve, the price of Bitcoin has fallen.

At the time of writing this report, the price of Bitcoin on the international crypto exchange Binance was down by more than 1.90 percent and was trading at a little more than $ 1,02,500. During the election campaign, Trump had informed about making a policy in the interest of cryptocurrencies. Paul Atkins, considered a supporter of cryptocurrencies, has recently been announced by Trump to be appointed as the next chairman of America’s market regulator Securities and Exchange Commission (SEC). Atkins has also previously held the position of commissioner in the SEC.

The interest of institutional investors in Bitcoin is also increasing. Software maker MicroStrategy has bought a large number of bitcoins in the last few weeks. The company purchased approximately 15,350 bitcoins worth approximately $1.5 billion between December 9 and December 15. For this, MicroStrategy has paid a price of a little more than $ 1,00,380 per bitcoin. The company’s share price has also benefited from increasing investors in the crypto segment. MicroStrategy’s stock has risen nearly 490 percent this year. Recently it was also included in the Nasdaq 100 index. The company has total holdings of approximately 4,39,000 Bitcoins. However, Microsoft, one of the big software companies, has decided not to invest in Bitcoin.