Government analysts say Bitcoin’s success is driving institutional FOMO.
They qualify the digital currency as an asset with high return potential.
In its report for the fourth quarter of fiscal year 2024, the United States Department of the Treasury highlighted the rapid growth of bitcoin (BTC) and its increasing relevance in the decentralized finance (DeFi) sector.
The report, which explores the rise of digital assets throughout this year, notably recognizes the pioneering cryptocurrency as a “digital gold”, consolidating its position as a store of value in the current financial landscape. Analysts at the government office highlight the market capitalization of BTC over the years.
«In 2015, the flagship cryptocurrency had a market capitalization of USD 6.4 million. In 2019, it grew to USD 194 billion. During this year it reached billions. Hence, the Treasury notes that the price of bitcoin “shows no signs of stopping anytime soon.”
However, analysts consider that this success is driving institutional FOMO (fear of missing out), as more companies They seek to adopt it as an asset to include in their balance sheet.
They cite, in that sense, what they call “the institutional sponsorship of bitcoin.” As examples, the multimillion-dollar inflows of money from ETFs are mentioned (highlighting the company BlackRock) and MicroStrategy’s BTC investments. Consequently, they think that the interest of these and other large companies has been decisive for the global recognition of the digital currency.
Hence, they anticipate that the rapid growth of bitcoin and other digital assets keep goingdespite the volatility.
In this way, “crypto assets are behaving like security assets.” high beta (high beta). This means that they have a beta coefficient greater than 1, an indicator of higher volatility than the market average; but with greater return potential, especially during bullish periods.
“The report looks like a capitulation”
It is worth noting that the Treasury office report was presented shortly before the series of historical highs that bitcoin experienced in November, and which led it to exceed USD 100,000 this December.
The report arrived at the height of the market boom in this last quarter of the year. As CriptoNoticias has reported, this is a period characterized by a constant increase in interest not only in BTC but also in ETH of Ethereum and other altcoinsincluding stablecoins.
The Treasury Office’s predictions sparked the enthusiasm of bitcoiners on X, where They expressed their excitement over the government recognition. This, while awaiting the arrival of Donald Trump to the presidency, loaded with favorable promises for the sector.
About it was pronounced the Bolivian deputy and bitcoiner, Mariela Baldivieso, for whom the evaluation made by the report “reaffirms the potential of BTC as a store of value.”
An idea shared by X user identified as Dr. Danish, who sees the Treasury analysis like a capitulation. «The United States Department of the Treasury compares bitcoin to digital gold. They say that the main use of bitcoin is as a store of value. Share this with your friends and family before it’s too late.
This recognition of bitcoin as digital gold echoes similar comments made by Federal Reserve Chairman Jerome Powell, who recently compared the digital currency to gold, highlighting the correlation between the two assets, particularly in their speculative nature and divergence. of traditional fiat currencies such as the US dollar.
