Key Points
- The U.S. Treasury Department has recognized Bitcoin as “digital gold,” highlighting its role as a store of value.
- President Trump’s nomination of Scott Bessent signals strong Bitcoin advocacy and potential strategic reserve plans.
The U.S. Treasury Department has recently acknowledged Bitcoin as “digital gold,” emphasizing its role as a store of value. This recognition reflects Bitcoin’s remarkable rise, from a market valuation of $6.4 billion in 2015 to an estimated $1.3 trillion by 2024.
Bitcoin’s Growing Influence
The increasing interest in decentralized finance (DeFi) and digital tokens has propelled Bitcoin’s exponential growth. Amid this, calls for the U.S. to establish a Bitcoin strategic reserve have been made, with Tesla’s Elon Musk citing concerns over the nation’s $36 trillion debt.
U.S. Bitcoin Strategy
In a significant shift in the national approach to digital assets, President Donald Trump has nominated pro-Bitcoin advocate Scott Bessent as the next Treasury Secretary. Trump has previously pledged to establish a “strategic national Bitcoin reserve” and predicted that Bitcoin could surpass gold’s $16 trillion market capitalization.
Federal Reserve Chair Jerome Powell, ARK Invest CEO Cathie Wood, and Dennis Porter have also shared their views on Bitcoin, likening it to gold. However, Bitcoin’s price has recently dropped slightly, and analysts speculate that its rally could lose further momentum following Trump’s inauguration on 20th January 2025.
As Bitcoin navigates its next moves, its future remains uncertain—whether it will maintain its bullish trend or face a bearish shift remains to be seen.