Bitcoin Adoption Surges Amid DeFi and Regulatory Shifts

The cryptocurrency market has recently experienced heightened volatility, highlighted by the depegging of Synthetix's stablecoin sUSD to $0.68 after protocol updates reduced collateral requirements and weakened stabilization mechanisms. This incident has raised concerns about stablecoin reliability within decentralized finance (DeFi). Concurrently, Bitcoin is gaining traction as a non-sovereign store of value, with its price increasingly decoupled from traditional assets amid global uncertainty and shifts in US policy. Major firms such as Strategy and Metaplanet are expanding their Bitcoin holdings, while US regulatory changes—including a softened Federal Reserve stance and an executive order to establish a national Bitcoin reserve—signal growing institutional and governmental support. Discussions in China about crypto legislation and the potential use of seized Bitcoin as strategic reserves add to the momentum. These trends underscore both the risks in DeFi innovation and the accelerating adoption of Bitcoin as a mainstream asset.