The Impact of US Economic Policy on Global Bitcoin Adoption

The Impact of US Economic Policy on Global Bitcoin Adoption

Bitcoin adoption has seen significant growth in recent years, establishing itself as an attractive option for investors, businesses and governments such as the US government.

This surge in Bitcoin adoption is due, in part, to market participants' growing interest in holding the world's leading cryptocurrency as a store of value, strategic investment, or hedge against inflation and U.S. dollar volatility. 

Throughout 2024, and so far in 2025, this phenomenon has accelerated, especially in a context marked by the Federal Reserve interest rate cuts (Fed) and the aIncrease in US public debt, factors that are redirecting attention towards decentralized financial alternatives like Bitcoin.

With a market capitalization that exceeds half of the total crypto ecosystem, Bitcoin has managed to distance itself from other cryptocurrencies, such as Ethereum and altcoins, reinforcing its position as the undisputed leader of the sector. This article explores how macroeconomic factors and political proposals in the US are driving Bitcoin adoption, analyzing their impact on the global market and the future prospects for the cryptocurrency.

Bitcoin consolidates its leadership against Ethereum and altcoins

And in the current cryptocurrency market landscape, Bitcoin has managed to expand its lead over competitors such as Ethereum and other altcoins. According to recent data, the main cryptocurrency represents more than 50% of the total capitalization of the sector, a percentage that has been increasing over the last few months. This hegemony is explained by its perception as a safe haven asset, especially in contexts of economic uncertainty and global financial tensions.

Bitcoin dominance against Ethereum and other altcoins.
Bitcoin dominance against Ethereum and other altcoins. Source: CoinMarketCap

While Ethereum and other altcoins have attempted to diversify their utility through decentralized applications (dApps) and smart contracts, Bitcoin has remained true to its original purpose: providing a Digital cash system to facilitate global, secure and decentralized payments, which has evolved to become more an investment asset and store of valueThe latter has resonated with institutional and retail investors, who see Bitcoin as a viable solution to the devaluation of traditional currencies.

Bitcoin's programmed scarcity, with a hard cap of 21 million units, contrasts with the monetary flexibility of centralized economies, which has reinforced its appeal as an alternative financial reserve. This phenomenon has helped Bitcoin consolidate its position as a market leader, leaving less stable and more volatile competitors behind.

CME Group highlights Bitcoin's growth potential in 2025

During a recent webinar Organized by CME Group as part of its educational initiatives, the leading derivatives exchange analyzed the growth of Bitcoin and its trend for 2025. Experts agreed that the cryptocurrency has shown remarkable resilience in a challenging economic environment, highlighting its ability to maintain its value in the face of volatility in traditional markets.

One of the most relevant points addressed at the seminar was the impact of the Federal Reserve's interest rate cuts on Bitcoin adoption. According to analysts, lower financing costs have encouraged investors to seek higher-yielding assets, which has directly benefited the cryptocurrency. In addition, the increase in US public debt has generated Concerns about the stability of the dollar, prompting many to consider Bitcoin as a safer alternative.

The seminar also highlighted the role of large institutional players in Bitcoin's growth by 2025. More and more investment funds and companies are incorporating the cryptocurrency into their portfolios, which has contributed to its legitimization and mass adoption.

«Bitcoin adoption is on the rise, helped by growing interest from market participants in holding the world's leading digital currency, whether as a store of value, strategic investment or dollar hedge», CME Group said.

Fed cuts: a catalyst for Bitcoin

In a low-interest rate environment, financing costs are reduced, which incentivizes investors to take on greater risks in search of higher returns. This scenario has benefited assets considered “risky,” such as cryptocurrencies, especially Bitcoin.

In addition, the Fed's cuts have raised concerns about the possible devaluation of the dollar, leading many to seek more stable financial alternatives. Bitcoin, with its limited supply and decentralized nature, has positioned itself as an attractive option to protect the value of savings against inflation.

This phenomenon is not new, but in recent months it has acquired a global dimension, with participants from all economic sectors considering Bitcoin as part of their financial strategies.

A strategic Bitcoin reserve for the US

One of the most controversial and promising proposals for Bitcoin in 2025 is the possible creation of a strategic reserve of one million bitcoins by the US government. This idea, promoted by Republican Senator Cynthia Lummis and which is being pushed by the executive order signed by Trump, seeks for the country to acquire approximately 5% of the total supply of bitcoins and keep it for the long term. 

The proposal aims to diversify the US strategic reserves and strengthen the dollar in a context of rising public debt. This possible acquisition of bitcoins by the US government could further legitimize the cryptocurrency, accelerate its adoption globally and reinforce its position as a long-term store of value.

Boost for the crypto ecosystem 

Finally, the United States is preparing to establish a clear and well-defined regulatory framework, which could be the catalyst that the cryptocurrency ecosystem needs to reach its full potential. Regulatory uncertainty has been one of the main obstacles to the mass adoption of Bitcoin, as it has generated distrust among banks, financial institutions and commercial houses.

However, in 2025, the potential implementation of strong and consistent regulations could incentivize these players to incorporate Bitcoin and other cryptocurrencies into their operations, driving their widespread adoption and use. Furthermore, a favorable regulatory environment would allow innovators and technology pioneers to continue developing solutions that transform the global financial landscape.

A scenario with a clear and well-defined regulatory framework would not only benefit Bitcoin, but also would lay the foundation for a more robust and resilient crypto ecosystem.

In short, Bitcoin's rise this year is closely tied to changes in US economic policy, from FED interest rate cuts to proposals for diversifying strategic reserves. These factors, along with Bitcoin's consolidation as the leader of the crypto market, suggest that its adoption will continue to grow in the coming years. In an increasingly decentralized world, Bitcoin stands out as a viable and resilient financial alternative.

IMPORTANT: The content of this article is for informational purposes only and, in no case, what is written here should be taken as investment advice or recommendations. Bit2Me News reminds you that before making any investment you should educate yourself and know where you invest your money, as well as the pros and cons of the system. We separate ourselves from the actions and consequences that ignorance may entail. If you decide to invest in this or another asset class, you are solely responsible for the consequences that your decisions and actions may have.