Federal Reserve Chair Jerome Powell criticized Bitcoin on Monday, declaring it unsuitable as a currency while describing the cryptocurrency as a "virtual gold." "People are not using it as a form of payment or as a store of value. It's highly volatile. It's not a competitor for the dollar—it's really a competitor for gold," said Powell during an interview at the New York Times DealBook Summit.

Later in the interview, the Fed chief reiterated the central bank's focus on safeguarding the banking system against cryptocurrencies. "We regulate and supervise banks, and we want the interaction between the crypto business and banks to not threaten their safety," he said. Powell also stressed the need for consumer protection, ensuring buyers fully understand crypto risks.

Powell's remarks come as Bitcoin nears the historical benchmark of $100,000, trading 0.69% higher on the day at $96,588, followed by Ethereum, up by 6% at $3,836 as of 2:25 pm ET.