The post Bitcoin Hits $106K: How Trump’s Strategic Reserve Proposal is Shaking the Crypto Market appeared first on Coinpedia Fintech News Bitcoin’s rise to $106,533 reflects a strong market momentum as President-elect Donald Trump hinted at a groundbreaking plan to establish a U.S. Bitcoin strategic reserve during his interview with CNBC. With a recent price of $105,688, the cryptocurrency has increased by more than 50% since the election on November 5. Plus, ether increased by about 3% to $4,014. On Chain data revealed that nearly 27,000 Bitcoins, worth $2.8 billion, were withdrawn from major exchanges over the weekend, potentially driving prices higher due to reduced supply. This is an electrifying effect of Trump’s ultimate vision is to ensure America’s dominance in crypto before anyone else takes over, particularly against competitors like China, has fueled confidence among investors. Moreover, his selection of crypto-friendly figures, including David Sacks as the White House AI and crypto czar and Paul Atkins to head the SEC, signals a policy shift towards mainstream adoption. This move is a green flag for global powers, including Russia, to explore Bitcoin’s potential to counter geopolitical challenges, signaling a possible “Bitcoin cold war.” President Vladimir Putin explores alternatives to the U.S. dollar. Putin recently emphasized Bitcoin’s resilience against restrictions, highlighting its appeal as a hedge against traditional currencies. The Bitcoin reserve plan gained traction as companies like MicroStrategy and Tesla adopted Bitcoin as a hedge against economic risks. MicroStrategy now holds 423,650 BTC, worth $43.6 billion, showcasing Bitcoin’s potential as a modern reserve asset. Trump’s proposal for a Bitcoin reserve echoes his earlier promise at the Bitcoin 2024 Conference, where he predicted Bitcoin’s market cap could rival gold’s $16 trillion. Supporting this vision, Republican Senator Cynthia Lummis introduced the BITCOIN Act, advocating for the U.S. to acquire 1 million Bitcoins over five years to address the $35 trillion national debt. Critics Have Mixed Views on Trump’s Bitcoin Plan Trump needs Congress to approve funding, clear SEC and Treasury guidelines, and Fed cooperation to succeed. In the meanwhile, Strike CEO Jack Mallers believes Donald Trump could issue an executive order on day one to make Bitcoin a U.S. reserve asset. While it wouldn’t involve buying 1 million BTC, Mallers calls it a “significant position” that could reshape Bitcoin’s role in the U.S. economy. Others argue that making Bitcoin part of national reserves could go against its decentralized nature. While price fluctuation are also expected with the plan. Bitcoin Current Scenario Market experts predict Trump’s plans could dramatically impact Bitcoin’s value. Perianne Boring, founder of the Digital Chamber, estimates Bitcoin could reach $800,000 by next year, creating a $15 trillion market cap. She highlighted Bitcoin’s fixed supply as a key driver: “The sky is the limit if Trump’s proposals take shape.” Notably, there are speculations 0.25% interest rate cut from the U.S. Federal Reserve on December 18 could further boost Bitcoin’s momentum, according to analysts.
Solana remained stable above the $215 level. SOL price is now recovering losses and facing hurdles near the $228 and $332 levels. SOL price started a fresh increase after it tested the $215 zone against the US Dollar. The price is now trading below $225 and the 100-hourly simple moving average. There was a break above a connecting bearish trend line with resistance at $222 on the hourly chart of the SOL/USD pair (data source from Kraken). The pair could start a fresh increase if the bulls clear the $228 zone. Solana Price Eyes Upside Break Solana price formed a support base and started a fresh increase from the $215 level but lagged momentum like Bitcoin and Ethereum . There was a decent increase above the $218 and $220 resistance levels. There was a break above a connecting bearish trend line with resistance at $222 on the hourly chart of the SOL/USD pair. The pair climbed above $225 and tested the 50% Fib retracement level of the downward move from the $234 swing high to the $215 low. However, the price is now facing many hurdles near $225. Solana is now trading below $225 and the 100-hourly simple moving average. On the upside, the price is facing resistance near the $225 level. The next major resistance is near the $228 level or the 61.8% Fib retracement level of the downward move from the $234 swing high to the $215 low. The main resistance could be $230. A successful close above the $230 resistance level could set the pace for another steady increase. The next key resistance is $235. Any more gains might send the price toward the $250 level. Another Decline in SOL? If SOL fails to rise above the $228 resistance, it could start another decline. Initial support on the downside is near the $220 level. The first major support is near the $215 level. A break below the $215 level might send the price toward the $205 zone. If there is a close below the $205 support, the price could decline toward the $200 support in the near term. Technical Indicators Hourly MACD – The MACD for SOL/USD is losing pace in the bullish zone. Hourly Hours RSI (Relative Strength Index) – The RSI for SOL/USD is below the 50 level. Major Support Levels – $220 and $215. Major Resistance Levels – $228 and $230.
Bitcoin achieves a historic milestone, hitting an all-time high of $106,352, solidifying its position as a key player in the global financial landscape. Despite a minor dip, Bitcoin’s upward trajectory
Bitcoin (BTC) surged to over $106,000 in early Asian hours, setting new all-time highs before quickly retreating to $104,500 amid concerns about the upcoming U.S. Federal Reserve (Fed) rate cut. The U.S. central bank is expected to reduce the benchmark borrowing cost by 25 basis points to the 4.25% to 4.5% range, marking a total easing of 100 basis points since September. However, there are concerns that the accompanying Fed commentary will seek to temper expectations for further easing, potentially diminishing the bullish impact of the rate cut. The Fed will announce its rate decision, the dot plot, comprising interest rate projections, and economic forecasts on Dec. 18 at 14:00 ET. A press conference by the Fed Chair Jerome Powell will occur a half hour later. The previous dot plot released on Sept. 18 showed 2.5 points of rate cuts by the end of 2026, pushing the borrowing cost below 3%. Some observers believe the Fed will trim these forecasts on Wednesday. "We suggest the risk of a 'hawkish' cut with less rate hikes next year than anticipated in September in the Summary of Economic Projections (dot plot), recognition that economy is stronger than it had expected previously, and inflation is on a bumpy path that allows the Fed to be patient," Marc Chandler, chief market strategist at Bannockburn Global Forex, said in Sunday's edition of the newsletter. If the projections reflect slower or fewer rate cuts, Treasury yields and the dollar will likely extend their recent run higher, potentially making it harder for risk assets, including BTC, to stay as strongly bid as they have been of late. That said, seasonality is quite bullish for BTC, and with President-elect Trump sending positive regulatory vibes to crypto, a potential hawkish Fed may not have a long-lasting impact on the cryptocurrency. Besides, the Fed rate cuts will still remain on the table alongside an expected easing from China, keeping BTC's bull case intact. "Yet, whilst lots of ink will be spilled on the pace of cuts going forward, little detracts from the supportive macro dynamic of a global central bank rate cutting cycle and rising global liquidity, set to be propelled by China," founders of the newsletter service LondonCryptoClub said. Later this week, markets will get the latest core PCE reading, the Fed's preferred inflation gauge, which will reveal whether the recent upticks in consumer price inflation are a fluke or hints of a genuine inflation rebound.
On December 16, Dennis Porter, the CEO of Satoshi Action Fund, announced that a third U.S. state is poised to unveil its “Strategic Bitcoin Reserve” legislation imminently. While Porter refrained
El Salvador President Nayib Bukele’s $270 Million Bitcoin Investment Surges to $632 Million After Bitcoin Hits All-Time High! ————— 💰Coin: Bitcoin ( $BTC ) $104,720.40 ————— NFA.
Summary Retail investors are cautioned against investing in MicroStrategy due to its unclear business model and high premium over its Bitcoin holdings. Bitcoin investments are best made countercyclically, during periods of low interest and panic, not during peak hype. The Company's bullish case is convoluted and lacks clear, sustainable cash flow generation, unlike straightforward business models like McDonald's or Google. For Bitcoin exposure, consider Bitcoin ETFs or even futures instead of MSTR, which carries additional risks and complexities and is inefficient. Before I start my discussion on MicroStrategy: I would like to set the tone that I'm not a crypto-denier: I was on the record strongly bullish on Coinbase ( COIN ) on October 10, 2022, during the crypto winter, and it has since gone up 367%. Coinbase coverage (Seeking Alpha) Ironically, as shown below, Bitcoin was trading at $20-30k apiece at that time and interest in Bitcoin was much more muted. Bitcoin price (StockCharts) After briefly introducing my crypto "credentials" of honking the bullhorn during the winter stage, I'm going to expand on why I think MicroStrategy should be avoided by investors. Now there is already a lot of bearish coverage on Seeking Alpha, so I'm not going to repeat their points, rather this article will focus on adding a few points: 1. Bitcoin investments are best done countercylically In fact, in the past 5 years, the good buy points were when there was panic and uncertainty, prices were low and sentiment was muted, e.g. as shown in the green boxes below (1) during the COVID panic in early/mid-2020, (2) the subsiding of the bubble during late 2022 and (3) during many uncertainties in mid-2024. Remember when there was worrying over Germany selling crypto in June/July 2024 ? Turns out that was near the low point of the whole year (a cynic might suggest the news of Germany selling a mere $1-$2 billion worth of bitcoin was exaggerated to drive down prices for accumulation, but that would just be pure guessing). Bitcoin price (StockCharts) Another way to gauge sentiment is by using Google Trends and searching for Bitcoin (a lower reading on the indicator indicates less search interest comparatively and vice versa). Note how periods with low search interest were usually bullish for Bitcoin (green boxes), while periods of high search interest and high anticipation (red boxes, i.e. right now, with hype of Strategic National Bitcoin Reserve ) were usually not so good for Bitcoin price performance. So even if an investor were bullish on Bitcoin for the long run, this is probably not the ideal time. Bitcoin Google Trends 2. Convoluted logic and unclarity of MSTR's business model Peter Lynch had a rule that analysts could deliver their pitch for why a stock was a good investment in 90 seconds. That's because the best investments have business models that are easy to clearly articulate. Many of the best investments of all time are easily understandable by any layman if articulated professionally. For example, McDonald's, Coca-Cola, Philip Morris, Google etc. You can see the customers going to and from McDonald's, you can see people smoking and not really quitting, and you can see people using Google every day (whether or not these products and services have any negative externalities that need to be otherwise regulated or managed is a different topic). Their business models are visible and verifiable and there's no question about their existence and utility and popularity with customers. However, when it comes to MicroStrategy bulls, in my opinion, their bullish case is so circuitous and convoluted, it's hard to understand, and you need to continuously try to convince yourself that it makes sense and that in itself is a huge red flag to me. Maybe in the end it'll work out, but I highly doubt it. If we browse through some of the recent analysis on Seeking Alpha, bullish arguments about MSTR include raising debt at 0% to buy "an appreciating asset (i.e. Bitcoin"). But Bitcoin, unlike real estate, does not yield cash flow, so where does the cash flows come from in the long run? Even Michael Saylor admits that "MicroStrategy found a way to outperform Bitcoin. The way that we outperform Bitcoin, in essence, is we just lever up Bitcoin." That does not sound to me like much of a business model. When an investor buys McDonald's or Google, he's buying into the perpetual future cash flows that these businesses can generate in the future. If MSTR is essentially just a leveraged bet on Bitcoin, why should an investor buy MSTR (which is trading at a massive premium to the Bitcoin MSTR owns. MSTR has a market cap of $88 bn while it owns roughly $40bn of Bitcoin at current prices of $100k/coin, and that's before considering the bonds MSTR has issued that will need to be repaid somehow, further diluting the current shareholder and increasing MSTR's effective "premium to net asset value") and not just buy Bitcoin futures? What exactly are investors paying MSTR for that they cannot get in terms of adding or reducing leverage ratio in Bitcoin futures? This reminds me of what Greenspan wrote in his memoir "The Age of Turbulence" about Enron. Now, I'm not saying or alleging that MSTR is doing anything improper or anything like Enron; however, the similarity is that Greenspan viewed Enron's explanation of its business case as complicated and no one knew how it was making money. Eventually, it turns out it was not making money at all and was a house of cards. My view is that at times when darling stock prices have surged, investors in the market are at max gullibility and any story stock with a stock price still appreciating lures in believers. With NVDA going up 1000+% in a year and a half, anything seems possible. Investors should have learned from the Everything Bubble of 2021 receding that when the tide goes out, these speculative issues go kaput, but it seems like they are just doubling down. In fact, when the Everything Bubble of 2021 went out, MSTR fell by 90% from peak to trough as shown below. An investor would have made substantial gains by buying Bitcoin in mid-2020 in the $10ks and in late 2022 Bitcoin even at its trough was mostly in the 20ks. But joining the rollercoaster in MSTR, especially at times of peak interest, was calamitous the last time around and my assessment is that it is not a good risk-adjusted bet this time around either. MSTR stock price (StockCharts) Risks to bearish thesis Again, I would not recommending shorting this stock. Market enthusiasm can continue for way longer than anyone can predict (or sustain) and maybe MSTR doubles or triples and keeps their money machine going on for much longer. Conclusion Individual investors are strongly cautioned against buying MSTR or putting substantial amounts of their life/retirement savings into it. Its business model is unclear and if MSTR is just a levered bet on Bitcoin, then investors can just buy Bitcoin ETFs or Bitcoin futures to gain the same exposure. Note that I am not suggesting a leveraged exposure to Bitcoins, but if that's what investors are looking for, it would probably be more efficient than buying MSTR.
This year is gradually coming to an end, and while the crypto industry witnessed significant growth this year, particularly after the United States presidential election, 2025 is expected to be an even better year. The on-chain analytics platform Nansen has shared with CryptoPotato key insights into important institutional trends that will gain momentum in the crypto market in 2025. However, these narratives are expected to do well under a clearer regulatory framework, which is anticipated under the Trump administration. Institutional Interest to Rise in 2025 The crypto industry is likely to experience a surge in institutional interest in both listed crypto products. As a result, bitcoin (BTC) could become part of the default-balanced asset allocation among asset managers and pension funds. Nansen analysts noted that buy-side investors may begin integrating crypto into standard allocations – moving from a traditional 60/40 equity-bond split to a 55/40/5 equity/bond/crypto split. “This comes from a feeling of “missing out” on the past 40% BTC rally three weeks after the election. Can investors afford not to be allocated at all to crypto going forward?” the report questioned. Bitcoin could also emerge as a frequently used collateral in traditional lending and decentralized finance (DeFi). Word is spreading that stablecoin issuer Tether is already in talks with the financial services firm Cantor Fitzgerald about a $2 billion BTC lending project. The Tokenization Trend Furthermore, the launch of new derivative products like Bitcoin exchange-traded fund (ETF) options indicates increasing institutional adoption. Nansen mentioned that such products and their trading platforms will also attract fees for financial intermediaries, so the sector is likely to surge. Moreover, institutions are exploring the tokenization of financial assets at an increasing pace. U.S. firms are taking major strides toward integrating blockchain in financial markets, and this could be the basis for significant growth if authorities provide clear rules for such operations. One more trend that could drive growth in the crypto sector is stablecoin regulation. If the U.S. makes progress on stablecoin regulatory frameworks, then there could be higher institutional adoption of tokenized fiat currencies. In the meantime, Nansen says the market is seeing a healthy rotation among outperforming cryptocurrencies amid a relatively shallow consolidation after the election. While December’s historical seasonality suggests a positive environment, there could be heightened volatility by January as the new U.S. administration takes office. The post These Crypto Institutional Trends Will Gain Momentum in 2025 (Nansen) appeared first on CryptoPotato .
XRP price started a downside correction from the $2.50 zone. The price is now consolidating gains and might aim for a move above the $2.4650 resistance zone. XRP price started a fresh increase above the $2.425 zone. The price is now trading above $2.350 and the 100-hourly Simple Moving Average. There is a short-term bullish trend line forming with support at $2.380 on the hourly chart of the XRP/USD pair (data source from Kraken). The pair might start another increase if it clears the $2.465 resistance. XRP Price Holds Support XRP price started a decent upward move above the $2.35 level, like Bitcoin and Ethereum . There was a move above the $2.40 and $2.420 resistance levels. The price even spiked above $2.50 before the bears appeared. A high was formed at $2.530 and the price is now consolidating gains. There was a minor decline below $2.4650. The price is now consolidating and trading below the 50% Fib retracement level of the downward move from the $2.53 swing high to the $2.354 low. The price is now trading above $2.350 and the 100-hourly Simple Moving Average. There is also a short-term bullish trend line forming with support at $2.380 on the hourly chart of the XRP/USD pair. On the upside, the price might face resistance near the $2.465 level. It is near the 61.8% Fib retracement level of the downward move from the $2.53 swing high to the $2.354 low. The first major resistance is near the $2.50 level. The next resistance is $2.550. A clear move above the $2.550 resistance might send the price toward the $2.650 resistance. Any more gains might send the price toward the $2.720 resistance or even $2.750 in the near term. The next major hurdle for the bulls might be $2.880. Another Drop? If XRP fails to clear the $2.465 resistance zone, it could start another decline. Initial support on the downside is near the $2.380 level. The next major support is near the $2.350 level. If there is a downside break and a close below the $2.350 level, the price might continue to decline toward the $2.280 support. The next major support sits near the $2.20 zone. Technical Indicators Hourly MACD – The MACD for XRP/USD is now losing pace in the bullish zone. Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now below the 50 level. Major Support Levels – $2.380 and $2.350. Major Resistance Levels – $2.4650 and $2.50.
World Liberty Financial is making headlines with its recent acquisition of $250,000 in ONDO, part of its aggressive $45 million crypto investment strategy. The company has rapidly amassed a diverse