Gold

Digital Gold

<ul class="wp-block-list">
 <li>Bitcoin's market cap reaches $2 trillion as U.S. Treasury labels it 'Digital Gold'.</li>  
 <li>Bitcoin ETF, IBIT, holds over 500,000 BTC valued at nearly $50 billion.</li>  
 <li>President-elect Trump supports creating a strategic national Bitcoin reserve.</li> 
</ul>  
BTC reached a new all-time high and exceeded the $100k level this week, an important landmark for the cryptocurrency industry. This growth happens along with the recognition of Bitcoin as “digital gold” in the recent fiscal report by the U.S. Treasury Department, proving its place as a store of value in decentralized finance (DeFi).  
Bitcoin has grown tremendously, now its market capitalization is almost $2 trillion. In the report about the U.S. Treasury's balance from fiscal Q4 2024, Speculative interest drives the use cases of DeFi in Bitcoin. The document also noted that cryptocurrency has transformed from a digital asset with substantial market value.  
Interest from various institutions has significantly contributed to the ascent. Large investors such as BlackRock and MicroStrategy have also boosted their Bitcoin holdings. BlackRock iShares Bitcoin Trust ETF (IBIT) acquired over 500,000 BTC worth more than $50 billion, making it one of the key market players. Meanwhile, MicroStrategy remains at the forefront of corporate Bitcoin purchases, holding more than 402,000 BTC.  
<h2 class="wp-block-heading" id="h-bitcoin-s-recognition-as-a-strategic-asset-nbsp">Bitcoin's Recognition as a Strategic Asset&nbsp;</h2>  
Specifically, the surge in recent months corresponds to the change in oratory by the U.S.’s political and financial leadership acknowledging Bitcoin as a strategic asset. Republican President-elect Donald Trump clarified that he supports Bitcoin and recommended establishing a strategic national reserve. Additionally, support for this is Trump’s Treasury Secretary nominee, Scott Bessent, who also reflects such sentiments toward Bitcoin, suggesting a Trump-led administration could be pro-Bitcoin.  
Federal Reserve Chair Jerome Powell echoed this stance when evaluating Bitcoin to gold during the New York Times DealBook Summit. Powell quickly pointed out that BTC does not challenge the dollar directly but operates like an investment instrument such as gold. He enumerated the high volatility of Bitcoins as one of the reasons why they are not regarded as a medium of exchange and store of value.  
<h2 class="wp-block-heading" id="h-implications-for-the-cryptocurrency-market">Implications for the Cryptocurrency Market</h2>  
After the US Treasury acknowledged BTC as “digital gold,” the cryptocurrency has opened up to further incorporation into the economy. This development also comes with increasing institutional FOMO as more firms start using it as an investment asset. Experts expect that due to such purchases by institutional investors, Bitcoin will remain an important digital currency in the market.  
The United States Treasury’s Bitcoin classification as “digital gold” has paved the way for increased integration into the financial system. This comes when there is increasing institutional FOMO, following other firms adding Bitcoin to their investment portfolio. Pundits also expect that more institutional investors will continue investing in their Bitcoin investments, cementing the digital currency as a leading cryptocurrency. 
The post <a href="https://cryptonewsland.com/u-s-treasury-calls-bitcoin-digital-gold-as-price-hits-100000/" rel="noopener noreferrer nofollow">U.S. Treasury Calls Bitcoin Digital Gold as Price Hits $100,000</a> appeared first on <a href="https://cryptonewsland.com" rel="noopener noreferrer nofollow">Crypto News Land</a>.

U.S. Treasury Calls Bitcoin Digital Gold as Price Hits $100,000

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