Bitcoin is getting a serious upgrade — and it’s not just because of price action. The world’s biggest crypto is starting to look a lot more useful thanks to a massive surge in Bitcoin-based DeFi (BTCFi), just as global markets get rocked by Trump’s sweeping tariffs.
BTCFi Turns Bitcoin Into a Yield Machine
According to Binance Research, the total value locked in BTCFi has jumped over 2,700% in the past year, now topping $8.6 billion. That’s a huge leap for a network traditionally seen as a digital gold vault.
BTCFi lets holders do more than just HODL. They can now lend, stake, and provide liquidity — earning yield without giving up control. A Binance spokesperson told Cointelegraph this trend “may contribute to a shift in how BTC is perceived — from a passive store-of-value to a productive on-chain asset.”
Projects like Babylon, which launched native BTC staking, and Hermetica, which offered a Bitcoin-backed synthetic dollar with a juicy 25% yield, are leading the charge. This shift is making Bitcoin more useful to everyday crypto users — not just whales or institutions.
Long-Term Holders Are Quietly Buying Again
Meanwhile, Bitcoin long-term holders are back in accumulation mode. According to Glassnode data, wallets holding BTC for over 155 days started stacking again after bottoming out in February. That’s reducing supply on exchanges — and potentially setting the stage for a supply shock.
More demand. Less available Bitcoin. You do the math.
Tariff Chaos Could Supercharge Bitcoin Demand
There’s also some interesting macro stuff brewing. BitMEX co-founder Arthur Hayes posted on X that Trump’s tariffs “will be corrected… with printed money, which is good for BTC.” He added that a weaker dollar and a potentially weaker Chinese yuan could push investors into Bitcoin as a safe haven.
Hayes said, “Some of y’all are running scurred, but I LOVE TARIFFS.”
He’s not shy about where he thinks this all leads either. In an earlier blog post, Hayes said Bitcoin could hit $250,000 in 2025 if the Fed restarts quantitative easing — especially with geopolitical instability and financial repression back on the table.
Now that the Fed is expected to cut rates, Bitcoin could benefit even more.
Between yield farming, supply crunches, and financial chaos? Bitcoin’s shaping up to be more than just a store of value. It’s starting to look like a macro hedge.
At the time of writing, Bitcoin is sitting at $82,458.
