- U.S. Treasury recognizes Bitcoin as “digital gold,” emphasizing its role as a store of value.
- Trump’s nomination of Scott Bessent signaled strong Bitcoin advocacy and potential strategic reserve plans.
As a seasoned analyst with over two decades of experience in financial markets, I find myself both intrigued and cautiously optimistic about the recent developments surrounding Bitcoin [BTC]. The U.S. Treasury’s recognition of BTC as “digital gold” is undeniably a significant milestone that highlights its growing influence within the global financial landscape.
The surge of Bitcoin [BTC] above the $100,000 mark has sparked worldwide excitement, drawing in individual investors, financial institutions, and even national entities.
Amid this optimism, Tesla’s Elon Musk has called for the U.S. to establish a BTC strategic reserve, citing concerns over the nation’s $36 trillion debt.
U.S. Treasury recognizes Bitcoin as “digital gold”
Emphasizing its significance, the U.S. Treasury Department has acknowledged Bitcoin as a form of “digital gold,” underscoring its growing status as a means for storing value.
In a recent report, the Treasury stated,
It appears that the main purpose of Bitcoin is serving as a digital form of savings or ‘gold-like’ asset within the realm of decentralized finance (DeFi).
The U.S. Treasury’s recognition of Bitcoin as a form of value similar to gold underscores its rapid growth. From a market worth of just $6.4 billion back in 2015, it is projected to skyrocket to an incredible $1.3 trillion by the year 2024.
This exponential growth underscores the increasing interest in DeFi and digital tokens.
Trump’s U.S. Bitcoin strategy
Continuing the forward motion, I, as a researcher, am excited to report that U.S. President Donald Trump has put forth the nomination of pro-Bitcoin advocate Scott Bessent for the position of the next Treasury Secretary. This potential appointment could significantly influence the regulatory landscape for cryptocurrencies in the United States.
Trump’s prior promise to set up a “national strategic Bitcoin reserve” and his daring forecast that Bitcoin might outperform gold’s $16 trillion market value indicate a notable change in how the nation views and handles digital currencies.
In fact, Bessent commented on the same post-Trump’s Bitcoin reserve proposal and said,
“I think that everything is on the table with Bitcoin.”
Other execs weighing in
In my analysis, I’ve observed that, much like gold, Bitcoin has been compared to by Federal Reserve Chair Jerome Powell in a recent conference at DealBook.
He said,
This is similar to gold, but exists online. Unlike physical gold, it’s not being used as a means of exchange or a form of saving. Instead, it exhibits extreme price fluctuations. It doesn’t challenge the US dollar; rather, it competes with gold as an alternative investment option.
Echoing a similar sentiment was ARK Invest CEO Cathie Wood and Dennis Porter, who said,
Recently, the US Treasury compared Bitcoin to digital gold, but there are still individuals who believe a Bitcoin price of $100,000 is excessive. However, we anticipate it will go even higher.
Bitcoin’s price action
At this moment, Bitcoin has decreased by 0.67% over the past day, currently priced at approximately $98,607.58, as per CoinMarketCap’s latest report.
Analysts predict that the rally might slow down or even stop after Donald Trump’s inauguration on January 20th, 2025.
Regardless, the future is still clouded as Bitcoin continues its journey, unsure if it will persist with its upward trajectory or encounter a downward swing.
Read More
- GBP EUR PREDICTION
- SEI PREDICTION. SEI cryptocurrency
- HBAR PREDICTION. HBAR cryptocurrency
- CNY RUB PREDICTION
- TRB PREDICTION. TRB cryptocurrency
- HOOK PREDICTION. HOOK cryptocurrency
- CTXC PREDICTION. CTXC cryptocurrency
- BCH PREDICTION. BCH cryptocurrency
- INJ PREDICTION. INJ cryptocurrency
- MNT PREDICTION. MNT cryptocurrency
2024-12-10 04:08