Bitcoin (BTC) surged past the $107,000 mark on Wednesday, climbing 2.2% over the past 24 hours and outperforming the broader CoinDesk 20 Index, which rose just 0.5%. The rally comes amid growing institutional recognition of cryptocurrency as a legitimate asset class—highlighted by new guidance from the Federal Housing Finance Agency (FHFA) that could soon allow homebuyers to include their crypto holdings when applying for mortgages.
FHFA Pushes for Crypto Inclusion in Mortgage Underwriting
William Pulte, director of the FHFA, has directed Fannie Mae and Freddie Mac—two government-sponsored enterprises critical to the U.S. mortgage market—to begin preparing systems and guidelines for evaluating cryptocurrency assets in loan applications. This marks a pivotal shift in how digital assets are perceived within traditional finance.
For years, prospective homeowners with significant crypto wealth have faced a dilemma: sell their holdings (and trigger taxable events) or leave that value uncounted during mortgage underwriting. Now, with FHFA’s directive, Bitcoin and other cryptocurrencies may soon be treated like other liquid assets such as stocks or retirement accounts.
Why This Matters for Crypto Holders
Matt Cole, CEO of Strive, emphasized the dual significance of this development on social media:
"This is important on two levels. [First], it makes it easier for Bitcoin holders to buy homes without selling their BTC. [Second], the U.S. government is effectively taking on Bitcoin risk—given its implicit backing of Fannie Mae and Freddie Mac loans."
This move signals not only regulatory acceptance but also institutional risk tolerance toward digital assets. If government-backed mortgage entities start factoring crypto into creditworthiness assessments, it strengthens Bitcoin’s legitimacy as a store of value and long-term investment.
Bitcoin Dominance Reaches Nearly 66%
Amid the broader market momentum, Bitcoin's dominance has climbed to nearly 66%, up from just 39% in November 2023. This growing concentration reflects investor confidence in BTC amid macroeconomic uncertainty and increasing scrutiny of lower-cap altcoins.
Bitcoin Cash (BCH) stood out as a top performer, rising 7.4%—outpacing most peers. However, the overall altcoin market remained subdued, with many projects failing to gain traction despite BTC’s strength.
Market Psychology: Peace Fuels Bitcoin, War Fuels Gold
Interestingly, geopolitical developments may also be influencing Bitcoin’s price trajectory. Recent ceasefire talks between Israel and Iran—brokered by former President Donald Trump—have contributed to a more stable global outlook. While traditional safe-haven assets like gold tend to rise during conflict, Bitcoin appears to thrive in periods of peace.
Charlie Morris, founder of financial services firm ByteTree, offered a compelling insight:
"Gold likes war, and Bitcoin likes peace. Gold peaked ahead of rising tensions in the Middle East, while Bitcoin fell. Once military escalation appeared contained, Bitcoin rebounded—and gold retreated."
This inverse relationship suggests that Bitcoin is increasingly viewed not as a crisis hedge, but as an asset that benefits from macroeconomic stability and institutional adoption.
Mixed Performance in Crypto-Linked Equities
While Bitcoin shines, performance among publicly traded crypto-related companies has been uneven.
- CleanSpark (CLSK) jumped 6.7%, continuing its strong run driven by expanding mining capacity and efficiency gains.
- Conversely, CoreWeave (CORZ) dropped by the same percentage, reflecting volatility in the AI-driven GPU leasing space.
- Circle (CRCL), issuer of the USDC stablecoin, fell 11%, bringing its share price down to $198.62—about 33% off its Monday high near $300.
Despite the recent pullback, Circle remains up over 600% from its $31 IPO price, underscoring sustained investor interest in blockchain infrastructure firms.
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Frequently Asked Questions (FAQ)
Q: Can I currently use my Bitcoin to qualify for a mortgage in the U.S.?
A: Not yet—but the FHFA’s new directive means Fannie Mae and Freddie Mac are now working toward systems that will allow borrowers to include crypto holdings in asset verification processes. Widespread implementation is expected within the next 12–18 months.
Q: How does including crypto affect mortgage approval?
A: Lenders typically assess asset liquidity and stability. Once formal guidelines are established, crypto holdings may be counted as part of your net worth or down payment funds, similar to brokerage accounts—though likely with valuation discounts due to volatility.
Q: Why did Bitcoin rise while gold fell recently?
A: Geopolitical de-escalation appears to be a key driver. Historically, gold performs well during conflict due to its safe-haven status. In contrast, Bitcoin tends to gain during times of global stability, especially when accompanied by regulatory clarity and institutional adoption.
Q: Is Bitcoin dominance increasing a bullish sign?
A: It can be. A rising BTC dominance often indicates risk-off behavior among altcoin investors or strong inflows into Bitcoin ETFs and institutional products. However, sustained altcoin seasons usually follow periods of consolidation.
Q: Will other government agencies follow FHFA’s lead?
A: Likely. As federal entities recognize crypto’s role in personal wealth portfolios, agencies like the IRS, SEC, and FHA may update policies related to taxation, reporting, and eligibility criteria for public programs.
Q: How might this impact future homebuyers with crypto income?
A: This could pave the way for recognizing crypto-based income streams—such as staking rewards or DeFi yields—in underwriting models, further integrating digital finance into everyday economic life.
The integration of cryptocurrency into mainstream financial systems is no longer speculative—it's underway. With FHFA's landmark guidance and Bitcoin reclaiming key psychological levels above $107,000, the convergence of policy and market momentum is creating new pathways for digital asset holders.
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