On December 19, the Cryptos market fluctuated and rebounded, with Bitcoin returning above the $0.1 million mark. As of the time of writing, $Bitcoin (BTC.CC)$up 1.11% at $101,313.24; $Ethereum (ETH.CC)$up 1.52% at $3,682.06.
Key focus
Bitwise CIO: The USA's Bitcoin Strategic Reserve may push Bitcoin up to 0.5 million dollars.
Bitwise Chief Investment Officer Matt Hougan stated that the Bitcoin strategic reserves in the USA could push Bitcoin up to 0.5 million USD. "If it happens, or if we start to see it happen in other countries, you will see a Bitcoin surge, making Bitcoin in 2024 seem very tame in comparison."
Powell: We are not allowed to hold Bitcoin, nor do we wish to change the law.
Currently, there is ongoing debate about whether the incoming Trump administration will establish a Bitcoin reserve. Federal Reserve Chairman Powell stated that the Federal Reserve has no intention of holding Bitcoin. Powell said at the press conference following the FOMC meeting, “We are not allowed to hold Bitcoin.” Regarding the legal issue of holding Bitcoin, Powell stated, “This is something for Congress to consider, but we have no intention of seeking to change the law.”
"New Bond King" Gundlach: Both Gold and Bitcoin will experience sideways fluctuations in the short term.
"New Bond King" Gundlach stated that positions in Gold and Bitcoin may continue to increase. In the short term, both Gold and Bitcoin will experience sideways fluctuations. I would never hold Bitcoin before the new government takes office.
FalconX: The slowdown in interest rate cuts will not have a long-term impact on Bitcoin.
David Lawant, Head of Research at the leading crypto broker FalconX, stated that while current interest rate cut predictions are affecting prices, the decreasing correlation between Bitcoin and major indices may mean there will be no long-term impact.
David Lawant further explained: "The expectation of a slowdown in interest rate cuts by 2025 is not entirely surprising, but it has put some pressure on risk assets, including Cryptos. While macro factors traditionally influence the price trends of Cryptos, specific industry factors may dominate in the coming weeks and months, especially when the market anticipates policy changes by the incoming government."
The Hong Kong Securities and Futures Commission has issued licenses to virtual Assets trading platforms under an expedited licensing procedure.
Today, the Hong Kong Securities and Futures Commission issued licenses to four applicants regarded as licensed virtual asset trading platforms under a rapid licensing process. Dr. Yip Chi-heng, Executive Director of the Intermediaries Division of the Commission, stated, “We have been actively communicating with the senior management and ultimate controllers of virtual asset trading platforms. This helps us clarify the regulatory standards they should meet and accelerates the licensing process for virtual asset trading platforms. The Commission is committed to achieving a balance between protecting investor interests and promoting the sustainable development of Hong Kong's virtual asset ecosystem.”
Today's Cryptocurrency Fear and Greed Index has dropped to 75, indicating a "Greedy State".
According to data from Alternative.me, today's Cryptocurrency Fear and Greed Index has dropped to 75 (yesterday it was 81, indicating "Extreme Greed"), showing a "Greedy State."
"Bitcoin Hold Positions": A new cryptocurrency purchase plan will be implemented if necessary.
MicroStrategy co-founder Michael Saylor: A new (Bitcoin/Cryptocurrency) purchase plan will be implemented if needed. The company may create a more "intelligent leverage." Refused to comment on a meeting with the elected president of the USA, Trump. Would consider serving on an advisory board if invited.
A cryptocurrency advocacy organization calls on the SEC to immediately review cryptocurrency-related lawsuits after Trump's inauguration.
A cryptocurrency advocacy organization is urging the USA Securities and Exchange Commission (SEC) to immediately review all existing cryptocurrency-related investigations, Wells notices, and ongoing lawsuits on the first day of the Trump administration. The Digital Chamber's Token Alliance stated in a release that the new American government will provide an opportunity for the SEC to reset its historically problematic relationship with the digital asset industry.
It is worth noting that Trump's nominated SEC chairman candidate, Paul Atkins, is one of the advisory board members of this alliance. "We need to cultivate a culture of mutual trust - allowing the digital asset industry to have confidence in the SEC's intentions, while also allowing the SEC to recognize that most digital asset participants are working to operate responsibly," the alliance stated in a release on December 18.
Blackrock: It is recommended to use Gold and Bitcoin as a supplement to Bonds investments.
In a report, Blackrock stated that government Bonds are no longer a reliable buffer against sell-offs in risk Assets like Stocks, and investors should consider Gold and Bitcoin as a supplement to Bonds investments. Economies are undergoing a transformation that could continue to change long-term economic trends. In the case of rising inflation, Bonds may not withstand stock market sell-offs. Bonds no longer reliably diversify the risk of a portfolio across a wide range of potential outcomes and scenarios. This calls for a re-evaluation of diversification. Therefore, investors should consider new diversification investment tools such as Gold and Bitcoin, even though they will not replace Bonds.
JPMorgan: Trump's victory opens a new era for crypto in the USA, and the choice of CFTC Chairman will be especially important.
JPMorgan in a report on Wednesday stated that Donald Trump's win in the November presidential election has opened a new era for cryptocurrencies in the USA, noting that since his victory, the total market value of cryptocurrencies has risen by approximately 65%. Analysts led by Kenneth Worthington wrote: "The new government not only brings a crypto-friendly atmosphere but also shows enthusiasm for promoting this asset class; Trump's nomination of the Commodity Futures Trading Commission (CFTC) chair is a missing element in the government's support for the cryptocurrency agenda. This position is important as it could play a significant role in regulating Bitcoin (BTC) and Ethereum (ETH)."
Arthur Hayes: High expectations from crypto investors for Trump may lead to a vicious sell-off.
Arthur Hayes published an article "Trump Truth", believing that there exists a huge gap between the high expectations of cryptocurrency investors regarding how quickly Trump could change things and the reality that Trump has no politically acceptable solutions to quickly implement such changes. The market will soon realize that Trump has at most one year around January 20 to implement any policy changes. This realization will lead to a vicious sell-off in cryptocurrencies and other Trump 2.0 stock trades.
El Salvador reaches a loan agreement of 1.4 billion dollars with the IMF, and Bitcoin payments will become voluntary.
According to Cointelegraph, El Salvador has reached a 1.4 billion dollar loan agreement with the International Monetary Fund (IMF), planning to receive funding support over the next 40 months. As part of the agreement, the country will make acceptance of Bitcoin payments by merchants voluntary, while gradually reducing government participation in Bitcoin-related projects, including a gradual exit from the management of the state-supported wallet application Chivo.
The IMF stated that this move will significantly reduce the potential risks associated with Bitcoin projects, while clearly stipulating that the public sector is limited to specific participants in Bitcoin economic activities. Additionally, taxes will be paid only in USD, not Bitcoin. The agreement still requires approval from the IMF Board of Directors, marking the end of the four-year negotiations with the IMF since El Salvador adopted Bitcoin as legal tender in June 2021.
The IMF has repeatedly warned that the speculative nature of Bitcoin could pose financial risks for the country. The agreement will also facilitate additional financing from institutions such as the World Bank, with a total funding amount exceeding 3.5 billion USD. Nevertheless, El Salvador's president's Bitcoin advisor Max Keiser expressed disdain on Social Media X, stating that Bitcoin usage in the country has 'never been so active and continues to grow.' However, surveys show that 92% of Salvadorans have not used Bitcoin for transactions, an increase from 88% in 2023.
Blackrock's spot Ethereum ETF currently holds over 1 million ETH, valued at over 4 billion USD.
According to Lookonchain monitoring, Blackrock's spot Ethereum ETF, the iShares Ethereum Trust ETF, currently holds over 1 million ETH, totaling 1,025,378 ETH (approximately 4.04 billion dollars).
Castle Island Ventures co-founder: Strategic Bitcoin reserves may undermine global market confidence in the USD.
According to Bloomberg TV, Nic Carter, co-founder of Castle Island Ventures, stated that he does not believe strategic Bitcoin reserves will emerge, as this could undermine global market confidence in the US dollar, resulting in adverse effects. He believes such a move would be detrimental to everyone.
Hong Kong media: The price of Bitcoin mining machines in Huaqiangbei has surged significantly, with many buyers coming from Russia, the USA, and Canada.
According to the Hong Kong Wen Wei Po, affected by the soaring price of Bitcoin, the price of Bitcoin mining machines in Shenzhen Huaqiangbei has significantly increased. Each Antminer S21 335T is priced at 5,600 USD (approximately 0.0407 million RMB), which is a 30% increase from last year. Some high-performance models such as the S21 XP water-cooled mining machines are already sold out on the official website, resulting in a supply-demand imbalance in the mining machine market.
Buyers mainly come from regions such as Russia, the USA, and Canada, with some customers purchasing hundreds to thousands of mining machines at once. The low electricity prices in these areas, for example, only 0.37 RMB per kilowatt-hour in Canada and as low as 0.2 RMB per kilowatt-hour in Russia, create a significant profit margin for miners. Industry insiders expect that the Bitcoin bull market is still in its early stages, and the prices of mining machines may increase further next year, exacerbating the market's shortage situation.
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