Bitcoin Rises as FHFA Pushes Fannie Mae, Freddie Mac Toward Crypto Adoption

Bitcoin (BTC) climbed 2.2% to $107,410 on Wednesday, outperforming the broader market, as the Federal Housing Finance Agency (FHFA) took a historic step toward crypto adoption. FHFA Director William Pulte announced that Fannie Mae and Freddie Mac must prepare to consider cryptocurrencies as part of mortgage applicants’ assets.

The move could allow borrowers to use crypto holdings like bitcoin for loan qualifications without liquidating them—marking a milestone for institutional integration. “This makes it easier for bitcoin holders to buy homes without selling, and puts crypto risk on the U.S. government’s balance sheet via Fannie/Freddie guarantees,” noted Strive CEO Matt Cole on X.

Bitcoin’s market dominance surged to nearly 66%, up from 39% in November 2023, reflecting strong investor confidence in the asset amid macro shifts. Bitcoin Cash (BCH) also saw gains, jumping 7.4% to $483.

The recent Middle East ceasefire between Israel and Iran, brokered by former President Trump, may have also fueled bitcoin’s rally. Analysts suggest bitcoin benefits more from geopolitical peace than gold, reversing traditional safe-haven dynamics. “Gold thrives on conflict; bitcoin on stability,” said ByteTree founder Charlie Morris.

In crypto stocks, CleanSpark (CLSK) rose 6.7%, while CoreWeave (CORZ) dropped by the same margin. Circle (CRCL) continued its retreat, falling another 11% to $198.62—still six times its IPO price despite a 33% drop from its peak.

As regulatory clarity improves and legacy institutions embrace crypto, bitcoin’s mainstream appeal continues to strengthen, signaling further momentum for digital assets in traditional finance.