The US Treasury said that Bitcoin (BTC) is growing rapidly from a small base. Moreover, the US Government department referred to BTC as ‘digital gold’. It also stated that its primary use case appears to be a store of value. The US Treasury also highlighted the growth of Stablecoin and how it is creating more demand for treasury bonds.
The rapid growth of Bitcoin (BTC) has attracted the attention of the US Treasury!
The US Treasury mentioned Bitcoin and other digital assets in its Q4 2024 report. In this context, he stated that BTC grew rapidly from a small base. Moreover, according to the US Department, Bitcoin is a ‘digital gold’. Accordingly, it sees BTC as a store of value in the DeFi world, its primary use. As you follow from Kriptokoin.com, Fed Chairman Jerome Powell, like the US Treasury, recently likened Bitcoin to gold when comparing both assets. Powell said BTC is a speculative asset with a closer correlation to gold than the US dollar.
Bitcoin is on the radar of corporate companies!
Meanwhile, the US department said speculative interest has played an important role in the growth of Bitcoin and other digital tokens so far. Be that as it may, BTC has undoubtedly witnessed tremendous growth. In 2015, the leading crypto had a market capitalisation of $6.4 million. This figure reached $ 194 billion in 2019. Now, Bitcoin has a market capitalisation of $2.3 trillion. The Bitcoin price recently passed the $100,000 milestone. Therefore, BTC is not showing signs of stopping anytime soon.
Meanwhile, more companies are looking to adopt BTC as an asset on their balance sheets. So, Bitcoin’s success is already triggering corporate FOMO. Recently, manufacturer Worksport announced that it will adopt Bitcoin and XRP for its corporate treasury.
Stablecoins are also in focus
The US Treasury report also highlighted stablecoins as another category of digital assets witnessing rapid growth. The report noted that stablecoin growth has led to a modest increase in demand for short-term treasury bills. According to the companies’ statements, a significant portion of the collateral for fiat-backed stablecoins is in treasury bills and treasury-backed repo transactions. The US Treasury estimates that a total of $ 120 billion of stablecoin collateral is directly in Treasury bonds.
The US ministry expects continued growth in stablecoin markets in the near term, along with the overall size of the digital asset market. They also estimate that the rapid growth of Bitcoin and other digital assets and large fluctuations may lead to future hedging needs and demand for quality tackle for Treasury bonds.
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