Is the future of Decentralized Finance (DeFi) at a crossroads in the United States? Senator Cynthia Lummis is raising alarms about a new IRS rule targeting DeFi, igniting a crucial debate over regulatory overreach and the future of crypto innovation. Let’s dive into why Senator Lummis is taking a stand and what this means for the burgeoning world of DeFi. Why is Senator Lummis Fighting the IRS DeFi Rule? Senator Cynthia Lummis, a vocal advocate for responsible crypto regulation and a senator representing Wyoming – a state known for its progressive stance on digital assets – has openly criticized the Internal Revenue Service (IRS) for its new rule concerning DeFi. Her concerns are rooted in the belief that the IRS is fundamentally misinterpreting the nature of decentralized technology. In a recent statement on X, Senator Lummis articulated her position clearly: [blockquote] “The IRS’s DeFi rule misinterprets decentralized technology and risks pushing crypto innovation overseas. Wyoming is leading the way on digital asset regulation, and we need regulatory clarity, not federal overreach. I support @SenTedCruz’s effort to repeal this rule.” – Senator Cynthia Lummis [/blockquote] This statement encapsulates the core of the issue: Senator Lummis believes the IRS rule is not only misguided in its understanding of DeFi but also poses a significant threat to the United States’ competitive edge in the global crypto landscape. She emphasizes that instead of fostering innovation through clear and thoughtful regulation, the IRS rule leans towards federal overreach, potentially stifling growth and driving businesses away. Decoding the IRS DeFi Rule: What’s the Controversy? To understand Senator Lummis’s strong stance, it’s important to grasp what the contentious IRS rule entails. While the specifics can be complex, the crux of the issue revolves around how the IRS is attempting to apply traditional financial regulations to the decentralized and often pseudonymous world of DeFi. Key concerns include: Mischaracterization of DeFi: Critics argue that the IRS rule fails to recognize the fundamental differences between centralized financial institutions and decentralized protocols. DeFi, by its nature, often operates without intermediaries, making it challenging to apply regulations designed for entities with clear lines of control and responsibility. Privacy Concerns: Many DeFi transactions occur on public blockchains, but the participants may not always be easily identifiable in the traditional sense. The IRS rule, in its attempt to ensure tax compliance, could potentially infringe on the privacy of DeFi users and developers. Innovation Chill: The most significant concern, as highlighted by Senator Lummis, is that overly burdensome or poorly conceived regulations can stifle innovation. Startups and developers might choose to operate in jurisdictions with more favorable regulatory environments, leading to a brain drain and loss of economic opportunity for the U.S. Complexity and Compliance Burden: DeFi protocols can be incredibly intricate, involving smart contracts and automated processes. Applying rigid, traditional tax rules to these dynamic systems can create immense complexity and compliance burdens for users and developers alike. Wyoming’s Proactive Approach to Digital Asset Regulation: A Model for the Nation? Senator Lummis proudly points to Wyoming as a leader in digital asset regulation. Wyoming has indeed been at the forefront of creating a legal framework that acknowledges and supports the growth of the crypto industry. What makes Wyoming’s approach noteworthy? Feature Wyoming’s Approach Traditional Regulatory Approach Focus Innovation-friendly, clarity-driven Precautionary, control-oriented Legislation Specific laws tailored for digital assets Applying existing laws, often ambiguously Engagement Proactive dialogue with industry stakeholders Reactive, enforcement-focused Outcome Attracting crypto businesses, fostering growth Potential chilling effect on innovation Wyoming’s success demonstrates that it is possible to create a regulatory environment that both protects consumers and encourages innovation in the digital asset space. Senator Lummis advocates for a similar approach at the federal level, emphasizing the need for regulatory clarity rather than heavy-handed federal overreach. Senator Cruz Joins the Fight: Support for Repealing the IRS Rule Senator Ted Cruz has stepped into the fray, joining Senator Lummis in her opposition to the IRS DeFi rule. Senator Lummis announced her support for Senator Cruz’s efforts to repeal the rule, signaling a bipartisan concern over the IRS’s approach. This collaboration highlights the growing recognition in Congress that ill-conceived crypto regulations can have detrimental consequences for the U.S. economy and its technological leadership. The move to repeal the IRS rule is a significant development. It indicates that lawmakers are starting to listen to the concerns of the crypto industry and understand the potential pitfalls of overly restrictive regulations. Whether this repeal effort will be successful remains to be seen, but it undoubtedly adds momentum to the ongoing conversation about responsible and effective crypto regulation. What’s Next for DeFi Regulation and Crypto Innovation? The debate surrounding the IRS DeFi rule and Senator Lummis’s opposition underscores a fundamental tension in the crypto world: how to balance the need for regulatory oversight with the desire to foster innovation and maintain the decentralized ethos of cryptocurrencies. Moving forward, several key aspects will be crucial: Industry Engagement: Regulators need to engage in meaningful dialogue with the crypto industry to understand the nuances of DeFi and develop rules that are both effective and practical. Clarity over Overreach: The focus should be on providing clear guidelines and frameworks rather than imposing overly broad or restrictive rules that stifle innovation. Tailored Regulations: Recognizing that DeFi is fundamentally different from traditional finance, regulations need to be tailored to the specific characteristics of decentralized technologies. Global Competitiveness: Policymakers must consider the global landscape and ensure that the U.S. does not become an unfavorable jurisdiction for crypto innovation. Conclusion: A Crucial Moment for DeFi’s Future Senator Lummis’s criticism of the IRS DeFi rule and her support for its repeal represent a pivotal moment for the future of DeFi regulation in the United States. Her stance reflects a growing concern that poorly designed regulations could inadvertently harm the very innovation they seek to govern. The fight for sensible and balanced crypto regulation is far from over, but voices like Senator Lummis’s are crucial in ensuring that the U.S. remains a hub for crypto innovation rather than pushing it overseas. The coming months will be critical in determining the trajectory of DeFi regulation and its impact on the broader crypto ecosystem. To learn more about the latest explore our article on key developments shaping DeFi regulation and its future impact.
Crypto analyst CasiTrades has revealed that the XRP price is still at risk of dropping to as low as $1.5. She further mentioned what needs to happen for XRP to avoid dropping to this price target. XRP Price Could Drop To $1.5 If This Happens In an X post , CasiTrades revealed that the XRP price could drop to $1.5 if it fails to break and hold above the $2.42 price level. This came as she noted that XRP is attempting to reclaim the consolidation pattern it broke down from. The crypto analyst further remarked that XRP needs to break and hold the trendline at $2.42 as support to keep the bullish momentum alive. She added that it is very critical for this to happen or a retest of $2 or $1.54 could be in play. CasiTrades’ analysis comes just as crypto analyst Egrag Crypto predicted that the XRP price could reach $30 by May this year. The analyst alluded to historical trends to prove why the crypto could reach this price target. Analysis Of The Current Price Action CasiTrades also gave an in-depth analysis of the current XRP price action. She noted that the crypto has seen a retracement of the move that followed Donald Trump’s announcement that XRP will be included in the crypto strategic reserve . However, the crypto analyst added that the overall market structure remained valid. CasiTrades also stated that XRP held above W1 territory and did not make a new low. She remarked that the bigger picture still supports a wave 4 correction playing out, targeting a new high. Meanwhile, the crypto analyst revealed that bullish divergences across timeframes are still intact and that the Relative Strength Index (RSI) is maintaining its uptrend from the $2 low. In line with this, CasiTrades stated that the next upside targets are $2.70 and $3.05. She noted that these are crucial levels before market participants can consider talking about new all-time highs (ATHs) for the XRP price. In the meantime, if XRP fails to hold above $2.42, CasiTrades stated that the crypto could see a test of $2.20, which is a key subwave support level. A deeper retracement could take XRP back towards $2 or $1.54 if sellers take control. However, the crypto analyst said that she is still favoring the bullish scenario until there is a clear invalidation. According to CasiTrades, the market is looking for buyer confirmation and this $2.42 level will decide if the XRP price moves higher from here of if there is need for more correction. The post Analyst Warns XRP Price Could Drop To $1.5 If This Happens appeared first on CoinGape .
Get ready for a jolt in the crypto world! If you’ve been keeping a close watch on the market, you’ve likely noticed some significant shifts. Today, we’re diving deep into a rather concerning development for Ethereum enthusiasts: the ETH price has experienced a dramatic plunge, falling below the critical $2,000 mark. This is a level we haven’t seen since November 2023, sending ripples of concern and speculation throughout the crypto community. Let’s unpack what’s happening, why it matters, and what this could mean for the future of Ethereum and the broader digital asset landscape. Why is the Ethereum Price Experiencing This Shocking Drop? The crypto market is known for its volatility, but even seasoned investors can feel a tremor when a major player like Ethereum experiences a significant downturn. The ETH price drop below $2,000 isn’t just a minor fluctuation; it’s a noteworthy event that warrants a closer examination. Several factors could be contributing to this current market pressure: Broader Market Correction: The entire crypto market has been experiencing a period of correction. Bitcoin, often seen as the bellwether of the crypto space, has also faced downward pressure. When Bitcoin sneezes, altcoins like Ethereum often catch a cold. This interconnectedness means that overall market sentiment and macroeconomic factors impacting Bitcoin can directly influence the ETH price. Profit-Taking After Rallies: Ethereum, along with many other cryptocurrencies, saw substantial gains in the lead-up to early 2024. Periods of rapid growth are often followed by profit-taking, where investors sell off their holdings to secure gains. This selling pressure can contribute to a price decline. Regulatory Uncertainty: The regulatory landscape for cryptocurrencies remains fluid and often uncertain. News or announcements regarding stricter regulations or potential crackdowns in major economies can spook investors and lead to sell-offs. Concerns about SEC actions or global regulatory alignment can weigh heavily on market sentiment. Macroeconomic Headwinds: Global economic factors such as inflation, rising interest rates, and geopolitical instability can impact all markets, including crypto. When traditional markets face uncertainty, investors may reduce exposure to riskier assets like cryptocurrencies, leading to decreased demand and price drops. Ethereum-Specific Factors: While broader market trends play a significant role, Ethereum itself is not immune to its own set of factors. Concerns about network congestion, gas fees, or the pace of Ethereum 2.0 development (though progress is being made) can sometimes influence investor sentiment. According to Bitcoin World market monitoring, the data is clear: Ethereum (ETH) has indeed breached the $2,000 threshold, a level that has acted as a significant psychological and technical support in recent times. As of the latest update, ETH is trading at approximately $2,026.3, reflecting a substantial 11.29% decrease in value over the last 24 hours, according to CoinMarketCap data. This significant ETH price drop underscores the severity of the current market movement. Understanding the Significance of the $2,000 Ethereum Below $2000 Level Why is the $2,000 mark so important for Ethereum? It’s not just a round number; it represents a confluence of factors that make it a crucial level to watch: Psychological Support: Round numbers often act as psychological support and resistance levels in trading. $2,000 has been a level where buyers have previously stepped in, viewing it as a good entry point. Breaking below this level can trigger further selling as this psychological support is breached. Technical Support: From a technical analysis perspective, $2,000 has often served as a support level on ETH price charts. A break below this level can signal a potential shift in market momentum from bullish to bearish, at least in the short to medium term. Investor Sentiment: Falling below such a key level can negatively impact investor sentiment. It can lead to increased fear and uncertainty, potentially triggering more sell-offs and further downward pressure on the ETH price. Margin Calls and Liquidations: For traders using leverage, a significant price drop below key support levels can trigger margin calls and liquidations, further exacerbating the downward price movement. Navigating the Crypto Market: What Does This ETH Price Drop Mean for You? For crypto investors, especially those holding Ethereum, this ETH price drop can be unsettling. However, it’s crucial to maintain perspective and consider both the challenges and potential opportunities that such market corrections present. Challenges: Portfolio Value Decline: The most immediate impact is the reduction in the value of your Ethereum holdings. Seeing your portfolio value decrease can be emotionally challenging, especially for newer investors. Increased Market Volatility: Periods of price drops are often accompanied by increased volatility. This means price swings can be more dramatic and unpredictable, making trading and investment decisions more complex. Potential for Further Downside: While no one can predict the future with certainty, breaking below a key support level like $2,000 can open the door for further potential downside. It’s important to be prepared for the possibility of continued market weakness. Opportunities: Potential Buying Opportunity?: For long-term investors who believe in the fundamentals of Ethereum and its future potential, a significant price drop can present a buying opportunity. Buying the dip, as it’s often called, can be a strategy to accumulate more ETH at a lower price point. However, this approach requires careful consideration and risk assessment. Re-evaluation of Investment Strategy: Market corrections provide a valuable opportunity to re-evaluate your investment strategy. Are your risk management practices adequate? Is your portfolio diversification appropriate? Are you investing based on solid research and conviction, or are you driven by short-term market hype? Learning and Growth: Market downturns are excellent learning experiences. They test your emotional resilience and provide insights into market dynamics. By analyzing market behavior during these periods, you can become a more informed and resilient investor. Actionable Insights: How to Respond to the ETH Price Drop So, what should you do in response to this ETH price drop? Here are some actionable insights to consider: Stay Calm and Avoid Panic Selling: Emotional reactions can lead to poor investment decisions. Avoid panic selling based on short-term price movements. If you have a long-term investment horizon and believe in Ethereum’s fundamentals, short-term volatility should be viewed in context. Review Your Risk Management: Ensure your portfolio risk is aligned with your risk tolerance. Consider using stop-loss orders if appropriate for your trading strategy (though be mindful of potential stop-loss hunting in volatile markets). Don’t invest more than you can afford to lose. Do Your Own Research (DYOR): Stay informed about the factors influencing the crypto market and Ethereum specifically. Read reputable news sources, analyze on-chain data, and understand the technology and ecosystem developments. Don’t rely solely on social media hype or fear-mongering. Consider Dollar-Cost Averaging (DCA): If you believe this price drop is a potential buying opportunity, consider using dollar-cost averaging. This involves investing a fixed amount of money at regular intervals, regardless of the price. DCA can help mitigate the risk of trying to time the market bottom. Long-Term Perspective: Remember that cryptocurrency markets are cyclical. Bear markets and corrections are a natural part of the cycle. Focus on the long-term potential of Ethereum and the broader crypto space rather than getting fixated on short-term price fluctuations. The Future Outlook: Will Ethereum Recover from This Price Drop? Predicting the future of any market, especially the volatile crypto market, is inherently uncertain. However, Ethereum remains a fundamentally strong project with a vibrant ecosystem, a large developer community, and significant real-world use cases. The ongoing development of Ethereum 2.0, aimed at improving scalability and sustainability, is a major long-term catalyst. Whether the ETH price will recover quickly or face further downside in the short term remains to be seen. Market sentiment, macroeconomic conditions, and broader crypto trends will all play a role. However, for those who believe in the long-term vision of Ethereum and the potential of blockchain technology, this price drop could ultimately prove to be a temporary setback in a larger growth trajectory. The key is to stay informed, manage risk effectively, and maintain a long-term perspective in the face of market volatility. Conclusion: Navigating the Volatile Waters of Ethereum Price Action The recent ETH price drop below $2,000 is undoubtedly a significant event, serving as a stark reminder of the inherent volatility within the cryptocurrency market. While concerning, it also presents a crucial moment for investors to reassess, strategize, and potentially capitalize on opportunities. By understanding the underlying factors driving this market correction, maintaining a calm and rational approach, and focusing on long-term fundamentals, you can navigate these turbulent waters and position yourself for the future of Ethereum and the evolving world of digital assets. The crypto journey is rarely a smooth ride, but with knowledge, resilience, and a strategic mindset, you can weather the storms and potentially reap the rewards of this innovative and transformative space. To learn more about the latest crypto market trends, explore our article on key developments shaping Ethereum price action.
The Bitcoin Volmex Implied Volatility 30-Day Index extended its four-day green streak, reflecting heightened price swings as President Donald Trump’s tariffs unsettled global markets. Bitcoin ( BTC ) rose 3% to $87,972, pushing the total crypto market capitalization back above $3 trillion. Altcoins posted modest recoveries, with XRP reclaiming its position over Tether ( USDT ) while Solana ( SOL ) and Cardano ( ADA ) slightly shrugged off the selloff. Publicly traded Bitcoin holders, including Coinbase and Strategy, also saw gains on March 4, rising 4% and 10%, respectively. However, it remains uncertain whether Bitcoin will surge past $90,000, as momentum had faded by publishing time. Bitcoin volmex implied volatility 30-day index | Source: TradingView You might also like: Bitcoin close to bottoming, EOY target still $150k: Lee Analysts predict higher end-of-year prices but expect volatility and potential bigger drawdowns in the near term. Experts such as Fundstrat’s Tom Lee and institutions like Standard Chartered forecast Bitcoin prices between $150,000 and $250,000 before 2026. However, in the short term, Bitcoin could decline another 24%, potentially falling below $70,000 to establish a cycle bottom. Meanwhile, U.S. indices like the Dow Jones, S&P 500, Nasdaq Composite, and NYSE Composite staggered amid trade wars. Canada’s government threatened to respond to President Donald Trump’s 25% tariffs with similar policies. Leading tech stocks, including Nvidia and Microsoft, had posted gains before tensions flared between Trump and Canadian Prime Minister Justin Trudeau over trade policy. Read more: White House supported the cancelation of a notorious Broker DeFi Rule adopted in December of 2024
In the fast-paced world of cryptocurrency and blockchain, staying ahead requires understanding not just financial trends, but also the technological leaps that power the future. One such leap comes from Cohere for AI, which has just unleashed Aya Vision AI , a groundbreaking multimodal AI model that they boldly claim is ‘best-in-class’. For crypto enthusiasts and tech-savvy investors, understanding advancements in AI, especially open-source initiatives, is crucial as these technologies could reshape industries and investment landscapes. What Makes Aya Vision AI a Game Changer? Cohere for AI, the nonprofit research arm of AI startup Cohere, has introduced Aya Vision, an ‘open’ multimodal AI model designed to bridge the performance gap across languages in understanding both text and images. This isn’t just another AI model; it’s a strategic move towards democratizing advanced technology. Here’s why Aya Vision is making waves: Multilingual Mastery: Aya Vision operates in 23 major languages, breaking down language barriers in AI applications. This is critical in our globalized world, mirroring the borderless nature of cryptocurrencies. Versatile Visual Understanding: It excels at tasks like generating image captions, answering questions about photos, translating text within images, and summarizing visual content. Think about analyzing global market trends visually represented in charts, regardless of the language they are presented in. Accessibility via WhatsApp: Cohere is making Aya Vision freely accessible through WhatsApp, broadening its reach to researchers and developers worldwide. This mirrors the open and accessible ethos of many blockchain projects. Open Source Commitment: Available under a Creative Commons 4.0 license via Hugging Face, Aya Vision encourages community-driven innovation, a principle deeply rooted in the open-source and crypto communities. Why is Multimodal AI Important for the Future? Multimodal AI Models like Aya Vision are significant because they process and understand different types of data – in this case, text and images – in conjunction. This capability is becoming increasingly crucial for real-world applications. Imagine: Enhanced Data Analysis: Analyzing news articles with accompanying charts or infographics in multiple languages to gauge market sentiment more accurately. Improved Global Communication: Facilitating seamless communication and information exchange across different linguistic and cultural contexts within the crypto space. More Intuitive User Interfaces: Creating more natural and user-friendly interfaces for blockchain applications that respond to both visual and textual inputs. Cohere highlights that Aya Vision AI directly addresses the existing gap in AI performance across different languages, especially in tasks involving both text and images. This focus on inclusivity and global applicability resonates strongly with the decentralized and international nature of the cryptocurrency ecosystem. Aya Vision 32B vs. 8B: What’s the Difference? Aya Vision comes in two versions, catering to different needs and computational resources: Feature Aya Vision 32B Aya Vision 8B Complexity More sophisticated, higher parameter count (32 billion) Less complex, lower parameter count (8 billion) Performance Outperforms models twice its size, including Meta’s Llama-3.2 90B Vision on certain benchmarks. Sets a ‘new frontier’ in visual AI . Outperforms models ten times its size on some evaluations. Highly efficient. Use Cases Demanding tasks requiring top-tier performance and accuracy. Applications where efficiency and speed are prioritized, or in resource-constrained environments. Commercial Use Not permitted under the Creative Commons 4.0 license with Cohere’s acceptable use addendum. For research and non-commercial applications only. Not permitted under the Creative Commons 4.0 license with Cohere’s acceptable use addendum. For research and non-commercial applications only. Both models are available on Hugging Face under a Creative Commons 4.0 license, emphasizing their accessibility to the research community. However, it’s important to note that commercial applications are currently restricted. The Power of Synthetic Data in Training Visual AI A fascinating aspect of Aya Vision’s development is its training methodology. Cohere utilized synthetic annotations – AI-generated labels for data – to train the model. This approach is gaining traction in the AI world as the availability of real-world data becomes limited. Gartner estimates that a significant portion of data used for AI projects is now synthetically created. Benefits of Synthetic Data: Resource Efficiency: Cohere achieved competitive performance with Aya Vision while using fewer computational resources, showcasing the efficiency of synthetic data. Accessibility for Researchers: This efficiency is particularly beneficial for researchers with limited access to extensive computing power, democratizing AI development further. Overcoming Data Scarcity: Synthetic data provides a way to train powerful visual AI models even when real-world datasets are scarce or expensive to acquire. While synthetic data offers numerous advantages, it also presents challenges, such as potential biases embedded in the synthetic data generation process. However, its increasing adoption highlights its crucial role in advancing AI, especially in resource-constrained environments. Addressing the AI Evaluation Crisis with AyaVisionBench Cohere didn’t just release Aya Vision; they also introduced AyaVisionBench, a new benchmark suite. This is critical because the AI industry is facing what’s termed an ‘evaluation crisis’. Traditional benchmarks often provide aggregate scores that don’t accurately reflect a model’s real-world proficiency. AyaVisionBench aims to rectify this by: Probing Vision-Language Skills: It’s designed to rigorously test a model’s abilities in vision-language tasks, like identifying differences between images or converting screenshots to code. Providing a Robust Framework: Offering a more ‘broad and challenging’ framework for evaluating cross-lingual and multimodal AI model understanding. Pushing Multilingual Evaluation Forward: Making the evaluation set available to the research community to foster advancements in multilingual multimodal evaluations. By focusing on more nuanced and real-world relevant evaluations, AyaVisionBench represents a step towards more meaningful assessments of AI capabilities, ensuring that progress in open source AI is measured against practical applications and diverse linguistic contexts. Conclusion: A Vision for a More Inclusive AI Future Cohere’s Aya Vision is more than just a new AI benchmark ; it’s a statement about the future of AI development. By prioritizing multilingual capabilities, open access, and efficient training methods, Cohere is paving the way for a more inclusive and accessible AI landscape. For the cryptocurrency and blockchain community, this signifies the growing convergence of AI and decentralized technologies, promising exciting new possibilities for innovation and global collaboration. As Aya Vision continues to evolve and inspire further research, we can anticipate a future where AI truly understands and serves a diverse, global audience. To learn more about the latest AI trends, explore our article on key developments shaping AI Models features.
LUTNICK: Expect Announcement on Tariff Compromise Tomorrow
David Sacks, President Donald Trump’s crypto and artificial intelligence czar, came under fire this week following allegations that he could financially benefit from Trump’s announcement of a U.S. strategic crypto reserve. The initiative, which Trump shared details about on Sunday, would involve the government holding a reserve of digital assets, including Bitcoin (BTC), Ethereum (ETH), XRP, Cardano (ADA), and Solana (SOL). Critics raised concerns that individuals within the administration with ties to these assets could stand to gain from the move. Sacks, a venture capitalist with previous crypto investments, quickly became a focal point of the controversy. Over the weekend and into Monday, he responded on X (formerly Twitter), rejecting accusations that he had a financial interest in the policy. He stated that he had divested from all of his personal crypto-related holdings before joining the administration, including his stake in Multicoin Capital, a crypto-focused investment firm. One lingering question, however, was whether Craft Ventures — Sacks’ venture capital firm — had retained its investment in Bitwise, a crypto index fund manager that Sacks helped fund back in 2017. Bitwise’s investment products include an ETF that holds all the assets mentioned in Trump’s strategic reserve plan, raising concerns that it could benefit from the government’s crypto purchases. On Tuesday, a source close to Craft Ventures confirmed to CoinDesk that the fund exited its position into Bitwise prior to the start of the President's second administration. The Craft Ventures website was also updated on Tuesday to reflect that it had exited its Bitwise investment in January 2025. Craft Ventures, Bitwise and Sacks have yet to comment publicly on the apparent exit. The source close to Craft Ventures told CoinDesk that the firm has not commented publicly so as not to disrupt Sacks' government clearance process, which is currently ongoing. In his social media defense, Sacks dismissed the entire controversy. “The accusation that people who are already very successful in business go into government to make more money is a lazy and stupid narrative,” he wrote . “As I’ve learned, serving in government involves substantial disruption and divestiture of one’s business interests.” The debate over Trump’s proposed reserve continues to divide the crypto community . Some of the president’s crypto supporters argue that a Bitcoin-only reserve would be preferable, while others question whether the government should be involved in digital asset holdings at all — arguing that government intervention in the crypto space contradicts the industry's decentralized ideals. Conflict of interest questions also continue to swirl around the president, himself. The Trump-backed crypto startup World Liberty Financial has a treasury of around $500 million worth of crypto assets, including some listed in his Sunday reserve announcement.
The recent crypto market downturn has created a prime buying opportunity for Bitcoin mining stocks, according to H.C. Wainwright & Co. analyst Mike Colonnese. In a research note to investors dated March 4, Colonnese argued the sharp pullback in Bitcoin ( BTC ) and mining stocks as temporary, while maintaining a bullish long-term outlook for BTC. Bitcoin’s recovery Tuesday afternoon means the largest coin by market cap is down around 5.6% in 2025, while Bitcoin mining stocks have plummeted by around 25%. Colonnese attributes the selling pressure to macroeconomic issues, rather than fundamental weaknesses in the crypto sector. “Tariffs, sticky inflation, a hawkish Fed, and austerity measures the government is taking through the Department of Government Efficiency (DOGE) have worked together to create a risk-off environment for equities and cryptocurrencies,” he noted. With these macroeconomic headwinds persisting, the analyst believes in a “neutral-to-cautious stance” on Bitcoin in the short term. However, the underperformance in mining stocks represents an attractive entry point for investors to take advantage of. Read more: Marathon Digital stock down 5% amid concerning Bitcoin production announcement ‘Unreasonably low’ valuations Bitcoin mining stocks are trading at “unreasonably low” valuations at 3.5 times 2025 revenue which is poor for “this stage of the cycle,” the analyst wrote. While mining stocks could indeed face further downside pressure, the current level offers significant upside for investors looking for leveraged exposure to Bitcoin ahead of its next bullish phase. The analyst maintained his 2025 Bitcoin price target of $225,000, implying significant potential for both Bitcoin and mining stocks. You might also like: Argo Blockchain shares rally 16% after securing $40m investment
The U.S. government has intensified its fight against illegal activities within cryptocurrencies by sanctioning dozens of addresses linked to a notorious darknet marketplace. This recent action, taken by the Treasury’s
US Commerce Secretary Lutnick: Trump Could Lift Canada and Mexico Tariffs Tomorrow