The US Treasury highlighted Bitcoin’s “speedy development” in its newest report whereas discussing the flagship crypto’s use case, particularly in decentralized finance (DeFi). Curiously, the federal government division additionally acknowledged BTC as “digital gold.”
US Treasury Highlights Bitcoin’s Fast Development
In its 2024 Q4 report, the US Treasury acknowledged that Bitcoin and different digital property have quickly grown from a small base. Based on the US Division, the first use case for BTC, which additionally they known as “digital gold,” appears to be a retailer of worth within the DeFi world.
Just like the US Treasury, Fed Chair Jerome Powell additionally lately likened Bitcoin to gold as he in contrast each property. Jerome Powell said that BTC is a speculative asset that has a more in-depth correlation to gold than the US greenback.
In the meantime, the US division stated that speculative curiosity appears to have performed a distinguished function within the development of Bitcoin and different digital tokens to date. No matter it is likely to be, BTC has undoubtedly witnessed large development.
In 2015, the flagship crypto had a market cap of $6.4 million. In 2019, it grew to $194 billion. Now, Bitcoin boasts a market cap of $2.3 trillion. The Bitcoin value isn’t exhibiting indicators of stopping anytime quickly, because it lately crossed the $100,000 milestone.
Bitcoin’s success is already driving institutional FOMO as extra corporations want to undertake the flagship crypto as an asset on their stability sheet. Lately, producer Worksport announced that it will undertake Bitcoin and XRP for its company treasury.
Stablecoins Are Additionally In Focus
The US Treasury report additionally highlighted stablecoins as one other category of digital assets which have witnessed speedy development. The report acknowledged that stablecoin development has resulted in a modest improve in demand for short-dated treasuries.
Fiat-backed stablecoins are stated to have a good portion of their collateral within the type of treasury payments and treasury-backed repo transactions. The US Treasury estimates that $120 billion in complete stablecoin collateral is immediately invested in Treasuries.
Over the close to time period, the US division expects continued development in stablecoin markets together with the general dimension of the digital asset market. Additionally they predict that the speedy development of Bitcoin and different digital property and large volatility would possibly result in future hedging wants and fight-to-quality demand for Treasuries.
Boluwatife Adeyemi
Boluwatife Adeyemi is a well-experienced crypto information author and editor who has lined matters that lower throughout DeFi, NFTs, sensible contracts, and blockchain interoperability, amongst others. Boluwatife has a knack for simplifying essentially the most technical ideas and making it simple for crypto newbies to grasp. Away from writing, He’s an avid basketball lover and a part-time degen.
Disclaimer: The offered content material might embrace the non-public opinion of the writer and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The writer or the publication doesn’t maintain any duty on your private monetary loss.
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