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Bitcoin's price dipped Wednesday after Federal Reserve Chairman Jerome Powell said the central bank is not looking to hold the digital currency and signaled a more cautious approach to rate cuts in 2025.

“We’re not allowed to own bitcoin. The Federal Reserve Act says what we can own, and we’re not looking for a law change," Powell said at a Wednesday press conference. “That’s the kind of thing for Congress to consider, but we are not looking for a law change at the Fed.”

Powell's comments were in response to a question on whether he saw any value in the U.S. building a reserve of bitcoin , an idea floated by President-elect Donald Trump as a way to stay ahead of the competition as other countries embrace crypto . Bitcoin prices fell more than 5% Wednesday afternoon following the press conference.

While experts have warned of risks associated with volatile cryptocurrencies, bitcoin’s value has soared in recent months as President-elect Donald Trump appears poised to create a more welcoming regulatory environment.

Trump in July said he would make the United States the “ crypto capital of the planet and the bitcoin superpower of the world.” In September, Trump helped roll out a new cryptocurrency business with ties to his family , and earlier this month named former PayPal executive David Sacks as his "White House A.I. & Crypto Czar .” He also nominated cryptocurrency ally Paul Atkins as head of the Securities and Exchange Commission.

As of Wednesday afternoon, Bitcoin's price was above $101,000, up more than 125% from the start of the year. The cryptocurrency hit a record high above $108,000 earlier this week.

This article originally appeared on USA TODAY: Powell: Fed 'not looking' for law change to own bitcoin