The U.S. Treasury Labels Bitcoin as "Digital Gold" Following Dramatic Price Surge
Bitcoin's price has surged past $100,000 this week, bouncing around the significant level with ease. Notably, the CEO of Wall Street's largest market maker has admitted to experiencing 'Fear of Missing Out,' or FOMO.
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Bitcoin's price has nearly doubled this year, propelled by an intense cryptocurrency market situation—with traders now on high alert for a major shift this week.
Now, eliciting responses from Tesla billionaire Elon Musk's advocacy against the escalating $36 trillion debt pool, calls for a U.S. strategic bitcoin reserve have surfaced. The U.S. Treasury has even labeled bitcoin as "digital gold" in a recent report.
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According to the report's authors, "the primary function of bitcoin appears to be a store of value, or 'digital gold,' within the decentralized finance (DeFi) realm; speculative interest seems to have played a significant role in the expansion of digital tokens so far."
Last month, Donald Trump nominated Scott Bessent, a hedge fund manager renowned for his pro-bitcoin stance, to serve as the next U.S. Treasury Secretary.
In July, Trump pledged to establish a "strategic national bitcoin reserve" and projected that bitcoin could challenge gold's $16 trillion market capitalization during a speech at the 2024 Bitcoin conference.
"Everything is on the table when it comes to bitcoin," Bessent asserted following Trump's bitcoin reserve proposal.
Early this week, Federal Reserve chair Jerome Powell compared bitcoin to gold during a presentation at the New York Times' DealBook conference.
"It's analogous to gold but digitally-based," Powell stated. "People are not utilizing it as a means of payment or as a store of value. Its volatility is considerable, and it's not a competitor for the dollar; alternatively, it's more of a competitor for gold."
Bitcoin's value has skyrocketed as it's recognized as 'digital gold' by prominent financial institutions such as BlackRock, the world's leading asset manager, and MicroStrategy, a major bitcoin buying force.
"Despite the U.S. Treasury acknowledging that bitcoin is 'digital gold,' some individuals still consider a $100,000 bitcoin cost to be too steep," Dennis Porter, whose Satoshi Action Fund has played a role in drafting various state-level cryptocurrency rights bills, posted to X. "We're heading much higher," Porter declared, referring to the bitcoin price surge.
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The spike in Bitcoin's price following Donald Trump's 2016 U.S. presidential election victory, has left traders optimistic that more Wall Street institutions and investors will adopt Bitcoin, leading to an increased demand for the cryptocurrency.
"Bitcoin breaking the $100,000 threshold is a significant psychological milestone for many since our minds tend to think in terms of tens," Peter Chung, head of research at Presto Research, noted in an email. "As a result, expect to see an increased interest from individuals and widespread media coverage due to Bitcoin reaching the $100,000 milestone."
1.Despite Scott Bessent's pro-bitcoin stance, some individuals still believe that a $100,000 Bitcoin price is too high, as he was nominated by Donald Trump to serve as the next U.S. Treasury Secretary.2.The U.S. Treasury labeled Bitcoin as "digital gold" in a recent report, following calls for a strategic national Bitcoin reserve, which Trump had pledged to establish and projected could challenge gold's market capitalization.3.Recent volatility in Bitcoin's price has led some traders to be on high alert for a major shift, while Federal Reserve chair Jerome Powell compared Bitcoin to digital gold but noted its volatility and considerable price fluctuations.
