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