One of the more significant developments for Bitcoin is the news that it has found a place in the Fiscal Year 2024 Q4 report. This report was recently released by the United States Treasury Department.
This 132-page document shows Bitcoin’s rapid growth and its use cases in Decentralized Finance (DeFi).
The agency equally identified the trends in digital asset growth and usage, which have evolved from very low levels.
Federal Reserve Chair Also Validates Bitcoin
This growth cuts across native crypto coins like Bitcoin, Ethereum (ETH), and stablecoins. Furthermore, the US Treasury acknowledged BTC’s portfolio as “digital gold.”
By referring to BTC as a store of value, the US Treasury Department is focused on the utility of the flagship cryptocurrency in the DeFi setting.
In this light, speculative interest has played a core role in the growth of digital tokens so far.
This Treasury mention comes only a few days after Jerome Powell, Chairman of the US Federal Reserve, compared BTC to gold.
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The Reserve Chief began his speech by acknowledging the place of Bitcoin in the global economy at the New York Times DealBook Summit.
From there, he stated that Bitcoin should not be viewed as an opponent of the American Dollar but as an investment instrument similar to gold.
Notably, he dismissed the concerns that Bitcoin could replace the US dollar. He cited that the former is more of a financial asset or gamble. He said,
“It’s like gold, only it’s virtual, it’s digital.”
High volatility was mentioned as the reason Bitcoin is allegedly not used as a medium of exchange or a store of value.
Powell concluded his speech by reiterating that Bitcoin is not a threat to the dollar. However, it is in competition with gold in the digital space.
Over the years, BTC has evolved massively, growing its market cap to $1.98 trillion. As of nine years ago, this figure hovered around $6.4 million.
By 2019, it had grown to $194 billion, accounting for about 50% of the broader cryptocurrency market cap. Bitcoin price appears to sway from further rallies, especially after it recently crossed the $100,000 level.
The victory of Donald Trump in the 2024 Presidential elections is instrumental in fueling the price of BTC.
The 78-year-old Republican politician holds a very positive crypto stance and has revealed his plan to create a Bitcoin strategic reserve for the country.
With such a pro-crypto administration, the landscape of digital assets in the United States has potential to improve tremendously.
Institutional Investors Grow Bitcoin Stash
According to certain analysts, the success of the flagship cryptocurrency is gradually driving institutional FOMO.
The fact that more companies and institutional investors are interested in embracing Bitcoin as an asset on their balance sheet, has often made news in recent times.
BlackRock’s iShares Bitcoin Trust ETF (IBIT) and business intelligence software company MicroStrategy are two of the most popular institutional Bitcoin enablers.
As the dominant spot Bitcoin ETF product in the US, IBIT boasts more than 500,000 BTC, which is almost $50 billion.
Judging by the fact that US spot Bitcoin ETFs are not even a year old, many analysts have commended this BlackRock milestone.
MicroStrategy launched its Bitcoin accumulation strategy four years ago following a global pandemic.
From then to date, its consistent acquisition has helped the Michael Saylor-led firm to stash 402,100 BTC.
Last week, Russian president Vladimir Putin endorsed Bitcoin, saying that “nobody can ban Bitcoin.” He further stressed that crypto will develop “one way or the other.”
