Bitcoin has hit another record and this time it is better, definitely more important things are happening below the surface than just the price action. Background moves by important U.S. financial institutions and decision-makers are indicating something of a larger scale, something that is not talked about much and yet is happening—a quiet though a bold push to position America as the leader in Bitcoin strategy.
Last Wednesday, May 21, Bitcoin achieved the level of over $109.400, which is an all-time high in the market—a fact that excited even those who had been most pessimistic. It was not only a market-driven event; it was several subtle moves by the U.S. government and Wall Street that comb ined to make it a unique event, which is likely to change the global dominance of crypto in the future.
Executive summaries and whispering executives speak a lot about strategy realization
One of the least written-about events in the past weeks was the range of executive talks about digital assets monetization. Although no exceptional Strategic Bitcoin Reserve declaration has been made, however, some informants claim that the U.S. Treasury and National Economic Council are highly involved in these talks now.
Among other aspects, those talks focus on how Bitcoin can guard against over the prolonged period dollar instability a fact that once was a matter of a joke but it has now become one of the strategies that government economic advisors are considering.
Bitcoin ETF Flows Show Unprecedented Institutional Trust
These days, it is the retail traders who are popping the champagne, yet institutional flows are always a more interesting topic. The fact that professionals from big corporations like BlackRock, Fidelity, and the like were quietly but effectively increasing their Bitcoin ETF holdings was an extreme confidence sign that retail traders could not offer. The major part of these ETFs recently experienced inflows of over $500 million, these still more than the inflow amount observed at that time
What is also noteworthy? These companies are starting to create products that invest in Bitcoin as well as Treasuries — meaning that the cryptocurrency is now put in the same group of the US top debt instruments.
A Change in the Political Expression
The Biden administration, albeit indirectly, has already taken a supportive stance concerning cryptocurrency. In fact, a full partisan agreement on the issue of regulatory clarity for the crypto space has been observed. The recent Senate work demonstrates the desire and interest of both the “blue” and the “red” sides to form a “Digital Reserve Infrastructure Framework”, which would potentially allow the US to officially keep digital assets like the Bitcoin for strategic reasons — a move that would not be officially communicated.
In the meantime, Mr. Trump, who is back to the race — is still a vocal proponent of “Bitcoin freedom” and US superiority in the area.
Is Bitcoin Changing to a National Asset Class?
The hike in this week is not exclusively about the price itself as it is mostly about the strategic stand. Considering that not less than 25 per cent of the total Bitcoin stock is currently domiciled in the United States and is there held by the locals and all the institutions, the idea that Bitcoin is turning into the national asset class beyond being a decentralized currency is no longer laughable but a viable option.
There is a huge change in the philosophy of being just a few years tunnel when the subject of the legalization of cryptocurrency was under discussion by the lawmakers
What It Means for Investors
Assuming that what is happening in the background is really a revolution, the potential for a similar occurrence in the US space is that Bitcoin is likely to gain more and more similarity to the precious metal. This is a long-standing, institutionally supported asset that benefits from favorable tax, takes part in retirement plans, and is under protection and secured by new schemes.
There is a group of analysts who believe that the next major rally of Bitcoin may top $135,000 this time, and this is especially likely if changes in the law can hurry up the tax-effective investment options for the regular Americans.
Such was Bitcoin’s price action this week, which became the talk of the town. However, what is going on in the corridors of power in the U.S. capital and in the financial district of New York could be of much more importance. Should it turn out that the U.S. is on the way to using Bitcoin as a cornerstone in its financial system probably and the cryptos are for a hedge strategy then phase one of the financial shift journey is taking place that will redefine or rather change the meaning of a ‘safe haven’ in the U.S.
Yet, as for now, the US dollar hasn’t fallen off its throne. Although Bitcoin might be a secret knight, the US is letting into the castle.
