The US Treasury highlighted Bitcoin’s “rapid growth” in its newest report whereas discussing the flagship crypto’s use case, particularly in decentralized finance (DeFi). Interestingly, the federal government division additionally acknowledged BTC as “digital gold.”
US Treasury Highlights Bitcoin’s Rapid Growth
In its 2024 Q4 report, the US Treasury acknowledged that Bitcoin and different digital belongings have quickly grown from a small base. According to the US Department, the first use case for BTC, which in addition they known as “digital gold,” appears to be a retailer of worth within the DeFi world.
Like the US Treasury, Fed Chair Jerome Powell additionally just lately likened Bitcoin to gold as he in contrast each belongings. Jerome Powell said that BTC is a speculative asset that has a more in-depth correlation to gold than the US greenback.
Meanwhile, the US division mentioned that speculative curiosity appears to have performed a distinguished position within the progress of Bitcoin and different digital tokens to this point. Whatever it is likely to be, BTC has undoubtedly witnessed huge progress.
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 worth isn’t displaying indicators of stopping anytime quickly, because it just lately crossed the $100,000 milestone.
Bitcoin’s success is already driving institutional FOMO as extra firms need to undertake the flagship crypto as an asset on their stability sheet. Recently, producer Worksport announced that it could undertake Bitcoin and XRP for its company treasury.
Stablecoins Are Also In Focus
The US Treasury report additionally highlighted stablecoins as one other category of digital assets which have witnessed fast progress. The report acknowledged that stablecoin progress has resulted in a modest enhance in demand for short-dated treasuries.
Fiat-backed stablecoins are mentioned 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 straight invested in Treasuries.
Over the close to time period, the US division expects continued progress in stablecoin markets together with the general measurement of the digital asset market. They additionally predict that the fast progress of Bitcoin and different digital belongings and big volatility may 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 reduce throughout DeFi, NFTs, good contracts, and blockchain interoperability, amongst others. Boluwatife has a knack for simplifying essentially the most technical ideas and making it straightforward for crypto newbies to grasp. Away from writing, He is an avid basketball lover and a part-time degen.
Disclaimer: The offered content material could embrace the private opinion of the creator and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The creator or the publication doesn’t maintain any duty to your private monetary loss.
