Bitcoin [BTC]’s ascent past the $100,000 milestone has ignited a global frenzy, attracting investors, institutions, and even governments.
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”
Adding weight to the conversation, the U.S. Treasury Department has officially recognized Bitcoin as “digital gold,” highlighting its emerging role as a store of value.
In a recent report, the Treasury stated,
“Primary use case for Bitcoin seems to be a store of value aka ‘digital gold’ in a decentralized finance (DeFi) world,”
The U.S. Treasury’s acknowledgment of BTC as a store of value akin to gold highlights its meteoric rise, with its market valuation growing from $6.4 billion in 2015 to an astonishing $1.3 trillion by 2024.
This exponential growth underscores the increasing interest in DeFi and digital tokens.
Trump’s U.S. Bitcoin strategy
Adding to the momentum, U.S. President Donald Trump has nominated pro-Bitcoin advocate Scott Bessent as the next Treasury Secretary.
That being said, Trump’s earlier pledge to establish a “strategic national Bitcoin reserve” and his bold prediction that BTC could surpass gold’s $16 trillion market capitalization signals a significant shift in the national approach to digital assets.
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
Additionally, Federal Reserve Chair Jerome Powell recently likened Bitcoin to gold at the DealBook conference.
He said,
“It’s just like gold only it’s virtual. People are not using it as a form of payment, or as a store of value. It’s highly volatile. It’s not a competitor for the dollar, it’s really a competitor for gold.”
Echoing a similar sentiment was ARK Invest CEO Cathie Wood and Dennis Porter, who said,
“The U.S. Treasury just declared that bitcoin is digital gold and yet some people still think $100,000 bitcoin is too expensive. We are going much higher.”
Bitcoin’s price action
In the meantime, BTC has dropped 0.67% in the last 24 hours, with its price at $98,607.58 at press time, according to CoinMarketCap.
However, analysts speculate that the rally could lose further momentum following Trump’s inauguration on 20th January 2025.
Yet, the future remains uncertain as Bitcoin navigates its next moves—whether it will maintain its bullish trend or face a bearish shift.
