Category: Cryptocurrency

Institutional Cryptocurrency Adoption on the Rise

A recent analyst report from Benchmark highlights the potential for increased institutional adoption of cryptocurrency following Donald Trump’s victory in the United States presidential election. Galaxy Digital, a leading crypto trading firm, saw its stock surge 25% on November 5th, marking its biggest trading day of the year.

The Impact of Trump’s Pro-Crypto Stance

Trump’s election win has sparked hope for a more favorable regulatory environment in the US, which could lead to increased institutional adoption of cryptocurrency. As part of his campaign platform, Trump had made a pro-crypto stance, promising to make the US the "crypto capital of the planet and the Bitcoin superpower of the world."

Potential Benefits for Galaxy Digital

The analyst report suggests that Galaxy’s stock is set for bigger gains due to several factors:

• Increased Institutional Adoption: With Trump’s election win, there is a higher likelihood of increased institutional adoption of cryptocurrency, which could lead to a surge in demand for Galaxy’s services.
• Nasdaq Listing: Galaxy’s push for a Nasdaq listing may be more likely under the incoming Trump Administration, which could provide additional benefits for the company.
• Helios Data Center Expansion: The anticipated demand from artificial intelligence and high-performance computing projects for enormous amounts of power could benefit Galaxy’s flagship Helios data center in Texas.

Galaxy Digital’s CEO on the Election Results

Michael Novogratz, Galaxy’s CEO, reportedly told Bloomberg that the election results "felt like an affirmation of everything we’ve been working for." This sentiment highlights the optimism surrounding the potential benefits of Trump’s pro-crypto stance for Galaxy and the broader cryptocurrency industry.

Policy Proposals from the Trump Administration

The Trump administration has proposed several policies aimed at promoting cryptocurrency adoption, including:

• Strategic Bitcoin Stockpile: Creating a strategic stockpile of Bitcoin to be used as a hedge against economic uncertainty.
• Crypto Presidential Advisory Council: Establishing a council to advise on matters related to cryptocurrency and blockchain technology.
• Bar on Digital Currency by Federal Reserve: Prohibiting the Federal Reserve from issuing a digital currency.

The Future of Cryptocurrency Adoption

The influence of the 2024 US elections on the crypto market is expected to be significant. A recent report highlights the potential for increased institutional adoption and policy changes that could benefit the industry.

Related Content

• The Influence of the 2024 US Elections on the Crypto Market: Report: This article explores the potential impact of the upcoming presidential election on cryptocurrency adoption.
• Crypto Voters are Already Disrupting the 2024 Election — and it’s Set to Continue: This piece highlights the growing influence of cryptocurrency voters in the US elections.

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According to data from DefiLlama, Solana onboarded an additional $1 billion in stablecoin total value in December, primarily in USD Coin (USDC). This highlights the accelerating adoption of stablecoins and Solana’s rise to prominence in decentralized finance (DeFi) in 2024.

Stablecoin Adoption

The inflows demonstrate the growing importance of stablecoins as a store of value and medium of exchange in the crypto market. With nearly $5 billion in stablecoin total value locked (TVL) on Solana, the network has become an attractive destination for users seeking stability and liquidity.

USDC Dominance

USDC is Solana’s most popular stablecoin, accounting for approximately $4 billion of the network’s stablecoin TVL. Tether’s USDt (USDT) is a distant second, with around $1 billion in TVL. The dominance of USDC on Solana can be attributed to its reputation as a reliable and widely adopted stablecoin.

Stablecoin Market Capitalizations

As of December 31, the total market capitalizations of USDT and USDC across blockchain networks are approximately $137 billion and $44 billion, respectively. These figures have grown sharply since November, with many attributing this growth to the increasing adoption of stablecoins as a store of value.

Post-Election Growth

The combined market capitalizations of the top three stablecoins – USDT, USDC, and Dai (DAI) – have collectively grown by more than $25 billion since November. This growth is seen as bullish for DeFi, with Citi research noting that "stablecoins are the on-ramp to decentralized finance."

Solana’s Rise to Prominence

Solana has emerged as a serious challenger to Ethereum in DeFi and other applications requiring smart contracts. Since 2023, SOL (SOL) has outperformed Ether (ETH) by approximately 8x, according to data from TradingView.

TVL Growth

In 2024, Solana’s total value locked (TVL) rose roughly 5x, from around $1.4 billion to upward of $8.6 billion. This growth is attributed to the increasing adoption of Solana-based DeFi applications and the network’s ability to offer faster and more efficient transaction processing.

Retail Trader Interest

Retail traders are increasingly entering the crypto market through Solana, with speculation intensifying around Solana-based memecoins and AI agent tokens. Grayscale Research noted in a December 30 report that "retail traders increasingly enter the crypto market through Solana."

Jito and Jupiter’s Success

In December, Grayscale added two Solana-native DeFi apps – Jupiter (JUP) and Jito (JTO) – to its list of top 20 tokens to watch in the first quarter of 2025. Jito, a Solana staking pool, clocked monthly revenues of over $100 million in November and December from priority fees and tips.

Ethereum’s Stablecoin TVL

While Solana’s stablecoin TVL has grown significantly, it still lags behind Ethereum’s stablecoin TVL, which exceeds $110 billion as of December 31. Despite this, Solana’s growth trajectory suggests that the network is poised to continue its rise in popularity.

Conclusion

Solana’s accelerating stablecoin inflows and growing TVL demonstrate its increasing importance in DeFi. With USDC dominating the stablecoin market on Solana, the network has become an attractive destination for users seeking stability and liquidity. As the crypto market continues to evolve, it will be interesting to see how Solana’s growth trajectory compares to Ethereum’s.

Related Articles

• DeFi TVL nears 2021 highs on liquid restaking, Bitcoin L2s
• Bitcoin payments are being undermined by centralized stablecoins

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Market Outlook

The cryptocurrency market is experiencing a mix of trends, with some coins showing signs of recovery while others are still struggling.

Top Performers

• Cardano (ADA) has turned up from the uptrend line, indicating that the lower levels are attracting buyers.
• Avalanche (AVAX) is attempting to bounce off the strong support near $35, but the relief rally is likely to be sold into.
• Sui (SUI) is finding support at the 20-day EMA ($4.64), indicating that the sentiment remains positive and traders are buying on dips.

Range-Bound Coins

• Dogecoin (DOGE) has been consolidating between $0.30 and $0.40 for the past few days, indicating buying on dips and selling on rallies.
• Toncoin (TON) is gradually slipping toward the strong support zone between $4.72 and $4.44, where buyers are expected to fiercely defend.

Bulls and Bears

• Bitcoin (BTC) price is stuck due to several factors, including lack of adoption, regulatory uncertainty, and market volatility.
• Ethereum (ETH) has been struggling to break above the 50-day SMA ($1,800), indicating that the bulls need to regain momentum to push prices higher.

Technical Analysis

• Cardano (ADA) will face selling at the moving averages if it turns down from there.
• Avalanche (AVAX) may break below $33.60 if it fails to hold above the 20-day EMA ($39.72).
• Sui (SUI) may reach $5.82 if buyers can push prices above the overhead resistance of $5.37.

Market Sentiment

• The market sentiment remains mixed, with some coins showing signs of recovery while others are still struggling.
• Investors should conduct their own research and risk analysis before making a decision to invest in any cryptocurrency.

Disclaimer

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

The Rise of Web3 Sports Content: An Exclusive Interview with João Neves

In a world where content creators are increasingly seeking control over their work and fair compensation, the sports media landscape is undergoing a significant transformation. Betarena, a blockchain-based platform, is leading this shift by empowering users to become content creators themselves.

The Evolution of Sports Content

João Neves, founder and CEO of Betarena, envisions a future where sports content distribution undergoes profound changes. "We’re moving toward what I call ‘sports citizen journalism,’ where the focus shifts from platforms to content creators," he explains. This movement will see creators retain most of the profits, rather than leaving them with traditional platforms.

The Shift Toward Creator Ownership

Until now, traditional sports media owned the content they published. However, this is about to change. With Betarena’s platform, creators will own their work and have the freedom to move it wherever they see fit. This trend mirrors what’s happening in other content areas, where traditional media are losing ground to ordinary individuals who can share knowledge and information without editorial filters.

NFTs: A Growing Role

Non-fungible tokens (NFTs) will play a significant role in ensuring proof of authorship, immutability, and protection against censorship. This development is expected to revolutionize the way content creators manage their work and interact with their audiences.

Betarena’s Game Plan for Creator-Audience Engagement

To foster more direct creator-audience engagement, Betarena has several strategies in place:

• Cashback System: A cashback system rewards both users and creators, with increased earnings and bonuses as they interact.
• Subscription Model: Users can subscribe to creators, follow their favorite authors, and receive alerts on new posts.
• Content Features: Content is featured on team pages, tournament listings, and other relevant sections to increase visibility and interaction.

Target Markets for Global Growth

Betarena has already surpassed 3 million visits worldwide, with a strong presence in Brazil, Italy, Peru, Mexico, and the United States. To grow in specific markets, Betarena will collaborate with prominent local sports figures, ensuring they connect with each region’s unique culture.

The BTA Token: A Cornerstone of Betarena’s Economy

BTA is the exclusive token for all payments and transfers on the platform. Content creators receive their earnings in BTA, and subscriptions are paid in BTA as well. The token powers NFT creation and drives the marketplace where developers can build and integrate widgets into the platform.

Betarena’s Unique Advantages

What sets Betarena apart from other sports media platforms? For starters, it offers a fairer and more transparent environment for creators to earn money. Unlike other platforms that share only a tiny fraction of the revenue or pay low fees to selected few freelancers, Betarena allows top contributors to get properly rewarded.

The Terminal: A Platform for Content Generation

Betarena has recently launched The Terminal, a platform that uses large language models (LLMs) to generate content daily. This content is available on Betarena and can be accessed by partners who subscribe to the service. It produces event-specific content, including analysis, predictions, and news for sports events worldwide.

Conclusion

The rise of Web3 sports content is a significant development in the media landscape. With platforms like Betarena leading the way, creators are gaining control over their work and fair compensation. As the industry continues to evolve, it will be exciting to see how these changes impact the way we consume and interact with sports content.

Note: This article is not investment advice. Readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions.

As the world welcomes a new year, authorities from various jurisdictions have been actively working to dismantle cryptocurrency-related schemes that have been targeting hundreds of potential victims. In this article, we will delve into the recent arrests and investigations surrounding these scams, highlighting the tactics used by the perpetrators and the measures being taken to prevent further victimization.

Vietnamese Police Bust Cryptocurrency Mining Scam

On January 5th, Vietnamese police arrested four individuals involved in a cryptocurrency mining scam that had stolen 4 billion Vietnamese dong (approximately $157,300) from over 200 victims. According to the report by VnExpress, the suspects, led by Tran Minh Quang, allegedly developed a fraudulent crypto-mining website called BitMiner with a Singapore domain.

The Scam: Unrealistic Investment Returns and Dubious Packages

The group advertised itself as a Dubai-based crypto-mining company, offering unrealistic investment returns to lure in unsuspecting victims. The victims were sold dubious crypto-mining packages and related educational materials, which ultimately led to the loss of their money.

Massachusetts Police Warn Citizens Against Crypto ATM Scams

Meanwhile, the police department in Springfield, Massachusetts, has issued a warning to citizens regarding an uptick in Bitcoin-related scams. While noting that scammers use various techniques, the warning specifically highlighted crypto ATM scams:

"The scams have many different variations, but one in particular directs a person to a cryptocurrency machine to insert and send money to the scammer. If you receive a phone call with someone demanding a payment in cryptocurrency or Bitcoin, please hang up."

Hong Kong Police Crack Down on AI-Related Crimes

In addition to crypto scams, authorities are also actively tackling artificial intelligence-related crimes involving deepfakes. On January 5th, Hong Kong police arrested a group of 31 scammers – mostly university students – who defrauded victims from different countries and stole 34 million Hong Kong dollars (approximately $4.37 million) using AI-generated deepfakes.

The Syndicate: A Year-Long Operation

According to a report by Radio Television Hong Kong (RTHK), the syndicate had been operating for more than a year, targeting victims from outside of Hong Kong, including Taiwan, Singapore, Malaysia, and the United States. The scammers used AI face-swapping technology to create deepfake images that induced potential victims into romance relationships.

Statement from Fung Pui-kei, Superintendent of the Commercial Crime Bureau

A translated version of a statement from Fung Pui-kei, superintendent of the Commercial Crime Bureau, reads:

"They (scammers) also make use of the new technology, like AI face-swapping technology, to [pretend] to be some good-looking ladies and gentlemen to induce potential victims, gain their trust, and develop into romance relationships in order to commence the romance scams."

Hong Kong Authorities Raid Locations and Seize Assets

While five criminals were charged with conspiracy to defraud, others were released on bail. The authorities raided two locations and seized 10 million Hong Kong dollars worth of cash, handbags, and luxury watches.

Conclusion: Authorities Crack Down on Cryptocurrency-Related Schemes

As the world becomes increasingly digital, it is essential for authorities to stay ahead of the game when it comes to tackling cryptocurrency-related schemes. The recent arrests and investigations highlight the importance of vigilance and cooperation between law enforcement agencies across jurisdictions.

Recommendations

To avoid falling victim to these scams:

• Be cautious of unrealistic investment returns and unsolicited offers
• Verify the authenticity of websites and companies before investing
• Use reputable sources for information on cryptocurrency and AI-related topics
• Report any suspicious activities or individuals to the authorities

By staying informed and taking necessary precautions, we can prevent further victimization and create a safer online environment.

According to Deng Chao, CEO of institutional asset manager HashKey Capital, crypto projects are expected to attract more capital from venture capitalists in 2025. These VCs are eyeing stablecoin products, real-world asset (RWA) tokenization, artificial intelligence, and infrastructure.

Increased Digital Asset Valuations and Macroeconomic Tailwinds

Chao attributed the potential increase in VC investment to the increased digital asset valuations in 2024 and the tailwinds from the re-election of Donald Trump in the United States. He noted that:

"As we enter into a supportive macro environment driven by stimulative US policies and the formalization of crypto regulatory frameworks, these macro tailwinds are set to drive more VC investments heading into 2025."

Macro Risks and Price Volatility

Despite the optimistic outlook, Chao cautioned that macro risks, including geopolitical tensions or increased deficit spending, could increase price volatility and uncertainty in the new year.

Real-World Asset Tokenization and Emerging Markets

Chao added that stablecoins were the strongest proven use case for crypto in 2024, and VCs were increasingly focused on stablecoin usage in emerging market economies. Dollar-pegged stablecoins are real-world tokenized assets that are increasingly used as a store of value by individuals in countries with rapidly depreciating local fiat currencies or strict capital controls.

The Growth of the Stablecoin Sector

According to Chao, the growth of the stablecoin sector is driven by its use cases in emerging markets. The World Bank estimates that 1.4 billion people lack access to adequate banking services. This lack of banking services is primarily due to insufficient infrastructure in developing countries.

However, with smartphones and internet access becoming increasingly widespread, crypto wallets have become a viable method of providing banking services to the unbanked. Dollar-pegged stablecoins offer cheaper fees, near-instant finality times, and no bank account required, making them an attractive option for individuals in emerging markets.

The Real-World Asset Tokenization Sector

The real-world asset tokenization sector is projected to reach up to $30 trillion by 2030. This sector includes government securities, stocks, corporate bonds, stablecoins, collectibles, or any other asset tokenized on a blockchain ledger.

VC Investment Set to Increase in 2025 but Falls Short of 2021 Peak

Market analyst Infinity Hedge predicted that crypto VC investment in 2025 would surpass last year’s levels but wouldn’t approach the peak recorded during the 2021 bull market. Crypto companies raised approximately $13.6 billion in 2024 compared to $10.1 billion in 2023.

According to market data platform PitchBook, VC investments in crypto projects are projected to grow to $18 billion in 2025. A recent report from Galaxy Digital also forecasted VC investments in crypto projects to grow 50% year-over-year in 2025 but will fail to reach highs established in 2021-2022.

The Future of Crypto Venture Capital Investment

While the outlook for crypto venture capital investment is optimistic, Chao cautioned that macro risks could increase price volatility and uncertainty in the new year. Nevertheless, the growth of the stablecoin sector and the real-world asset tokenization sector are expected to drive more VC investments in 2025.

As the crypto market continues to evolve, it will be interesting to see how VC investment trends unfold in 2025. Will we see a repeat of the 2021 bull market, or will the industry settle into a more sustainable growth trajectory? Only time will tell.

References

• Silicon Valley Bank: Crypto VC Investment vs. VC Investment in Other Tech Sectors, 2023-2024
• Galaxy Digital: The Growth of the Stablecoin Sector
• RWA.xyz: Total RWA Value, Including Stablecoins

Related Articles

• From RWA Boom to Bitcoin Yields: Top Crypto Trends to Watch in 2025
• The Secret of Pitching to Male VCs: Female Crypto Founders Blast Off

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United States Securities and Exchange Commission (SEC) Approves Two Bitcoin and Ether Index ETFs

In a significant development for the cryptocurrency market, the United States Securities and Exchange Commission (SEC) has given the green light to Hashdex and Franklin Templeton’s respective Bitcoin and Ether index exchange-traded funds (ETFs). The approvals mark a major milestone in the history of cryptocurrency regulation and open up new investment opportunities for institutional investors.

Hashdex’s Nasdaq Crypto Index US ETF

On December 19, the SEC announced its approval of Hashdex’s Nasdaq Crypto Index US ETF, which will be listed on the Nasdaq stock market. This fund will track Bitcoin (BTC) and Ether (ETH), which are included in the Nasdaq Crypto US Settlement Price Index. The index is designed to provide a benchmark for digital asset prices and offers investors a diversified exposure to the cryptocurrency market.

Franklin Templeton’s Crypto Index ETF

In addition to Hashdex’s approval, the SEC also approved Franklin Templeton’s Crypto Index ETF, which will be listed on the Cboe BZX Exchange. This fund tracks the Institutional Digital Asset Index, a benchmark designed to represent the performance of digital assets such as Bitcoin and Ether. The index is calculated by Solactive AG and provides investors with exposure to a diversified portfolio of cryptocurrencies.

Similarities in Structure

Both Hashdex’s Crypto Index ETF and Franklin Templeton’s Crypto Index ETF have structures that are substantially similar to spot Bitcoin ETP and spot Ether ETP proposals already approved under previous SEC orders. This similarity is key, as it indicates that the SEC has found these funds to be in compliance with regulatory requirements.

SEC Approval on an ‘Accelerated Basis’

The SEC said that Franklin Templeton’s updated December 18 filing was approved on an "accelerated basis." This means that the regulator did not require the firm to wait for a standard approval period, but instead expedited the process due to the strong similarity between the proposed fund and existing spot ETPs.

Meeting Regulatory Requirements

The SEC approvals were based on the amended filings from both firms, which demonstrated compliance with regulatory requirements. The Exchange Act requires issuers to have rules in place to prevent fraudulent and manipulative acts, protect investors, and promote the public interest.

Potential Impact on Other Firms

Nate Geraci, president of The ETF Store, an investment adviser specializing in ETFs, speculated that the SEC’s approval may inspire other firms to copy the move. In a December 19 post on X, he said: "Will be interesting to see if BlackRock or others attempt to piggyback on this & launch similar ETFs." Geraci also noted that there will likely be strong demand for these products among investors.

Interest in Crypto Index ETFs

Franklin Templeton applied to the SEC for approval of its crypto index ETF in August, but the regulatory agency delayed the decision in November. Hashdex submitted its second amended application for an ETF on November 25, after filing its first amended S-1 in October at the request of the SEC.

Other Firms Looking to Launch Crypto Index ETFs

Franklin Templeton and Hashdex are not the only firms looking to launch a crypto index ETF in the United States this year. On November 26, the NYSE Arca requested to list a Bitwise ETF holding both Bitcoin and Ether. In October, NYSE Arca also expressed interest in listing a Grayscale crypto index ETF holding a diverse basket of spot cryptocurrencies.

Regulatory Considerations

US regulators indicated they were considering the listing for approval in November. This raises questions about the regulatory framework surrounding cryptocurrency investment products and whether firms will need to comply with additional requirements before launching similar funds.

Investment Opportunities

The approvals by the SEC open up new investment opportunities for institutional investors, including pension funds, endowments, and family offices. These investors can now gain exposure to a diversified portfolio of cryptocurrencies through these index ETFs.

Convergence of Traditional Finance and Cryptocurrency

The convergence of traditional finance and cryptocurrency is becoming increasingly evident, with regulators and industry players working together to develop regulatory frameworks that balance innovation and investor protection.

Investor Interest in Crypto Index ETFs

As the popularity of cryptocurrency investment products continues to grow, it’s likely that investors will be interested in these index ETFs as a way to gain exposure to digital assets while minimizing risk. With more firms looking to launch similar funds, we can expect to see increased demand for these products.

Regulatory Evolution

The approvals by the SEC mark an important step forward in the regulatory evolution of cryptocurrency investment products. As the market continues to evolve, regulators will need to adapt and innovate to ensure that investors are protected while also allowing for innovation and growth.

Future Developments

With the approvals of Hashdex’s Nasdaq Crypto Index US ETF and Franklin Templeton’s Crypto Index ETF, we can expect to see increased interest in crypto index ETFs. Firms such as BlackRock may follow suit and launch similar products, which will provide investors with even more options for gaining exposure to digital assets.

Conclusion

The approvals by the SEC mark a significant milestone in the history of cryptocurrency regulation. As the market continues to evolve, we can expect to see increased demand for crypto index ETFs among institutional investors. With more firms looking to launch similar funds, we can anticipate that this trend will continue into the future.

Cryptocurrency Market Outlook: November 2022

The cryptocurrency market has been on a wild ride in recent months, with prices fluctuating rapidly due to various global events and economic indicators. As we navigate the current landscape, it’s essential to stay informed about the latest trends and analysis.

Bitcoin (BTC) and Ethereum (ETH)

• Bitcoin: After reaching an all-time high of $64,804 in April 2021, BTC has been experiencing a significant decline, currently trading at around $19,000. This downward trend is attributed to increased selling pressure from institutions and individuals.
• Ethereum: ETH has also faced a decline, dropping from its peak of $4,891 in November 2021 to its current price of approximately $1,300.

Altcoin Analysis

• Cardano (ADA): Buyers attempted to push ADA above the $0.66 resistance on November 12 but were met with resistance. The pair has since pulled back, finding support between the 38.2% Fibonacci retracement level of $0.53 and the 50% retracement level of $0.49.
• Shiba Inu (SHIB): SHIB’s rally stalled at the overhead resistance of $0.000030 on November 12, indicating profit-booking by bulls. The bears pulled the price below the $0.000024 support on November 13 but found solid buying interest at lower levels.
• Toncoin (TON): TON closed above the 50-day SMA ($5.21) on November 10 but struggled to sustain higher levels. Sellers are attempting to pull the price back below the moving averages, potentially leading to a decline to the $4.72 to $4.44 support zone.

Market Drivers

• Global Economic Uncertainty: The ongoing pandemic, rising inflation, and economic downturns in various regions have contributed to increased uncertainty and volatility in the cryptocurrency market.
• Regulatory Developments: Governments and regulatory bodies worldwide are continuously shaping the crypto landscape through new laws, policies, and guidelines. This can significantly impact investor confidence and adoption.

Investor Insights

• Risk Management: Investors should prioritize risk management by diversifying their portfolios, setting clear entry and exit strategies, and staying informed about market developments.
• Long-term Perspective: Adopting a long-term perspective can help investors navigate short-term volatility and capitalize on potential growth opportunities.

In conclusion, the cryptocurrency market remains highly unpredictable due to various factors. As we move forward, it’s essential for investors to stay adaptable, informed, and disciplined in their approach to navigating the complexities of this rapidly evolving landscape.

The United States could significantly reduce its national debt in the next 24 years by creating a reserve of 1 million Bitcoin, as proposed in Senator Cynthia Lummis’ bill. Asset management firm VanEck has estimated that this reserve could cut the national debt by 35% by 2049.

The Estimate

VanEck’s estimate assumes a compounded annual growth rate (CAGR) of 25% for Bitcoin, which would increase from $200,000 in 2025 to $42.3 million by 2049. During the same period, the national debt is expected to grow at a CAGR of 5%, rising from $37 trillion to $119.3 trillion.

The Reserve’s Impact

According to VanEck’s head of digital asset research, Matthew Sigel, and investment analyst Nathan Frankovitz, the reserve could represent an estimated 35% of the national debt by 2049, offsetting approximately $42 trillion of liabilities. This optimistic scenario assumes that Bitcoin’s CAGR starts from a price point of $200,000 in 2025.

Challenges Ahead

However, for VanEck’s estimate to become a reality, Bitcoin would need to more than double its current price of $95,360. Additionally, the estimated growth rate of 25% is aggressive and may not be sustainable in the long term.

Global Implications

If the US were to create a Bitcoin reserve, it could have far-reaching implications for global trade and finance. As noted by Sigel, countries like those in the BRICS alliance (Brazil, Russia, India, China, and South Africa) may adopt Bitcoin as a settlement currency, potentially avoiding the parabolic increase in USD sanctions.

The Lummis Bill

Senator Cynthia Lummis’ bill proposes to create a reserve of 1 million Bitcoin, which could be used to offset national debt liabilities. The reserve could be financed through various means, including repurposing existing assets seized by law enforcement or selling a portion of the US gold reserves.

Impact on Global Finance

The creation of a Bitcoin reserve would have significant implications for global finance. As noted by Sigel and Frankovitz, the adoption of Bitcoin at the state, institutional, and corporate levels could bolster its growth rate estimates. Furthermore, the increased use of Bitcoin as a currency could lead to a more stable and efficient global financial system.

The Potential for Executive Action

Some speculate that President-elect Donald Trump’s incoming administration may take executive action on Bitcoin, potentially designating it as a reserve asset. However, this remains speculative at present, and the Lummis bill has yet to be reviewed by the Senate or House.

Conclusion

Reducing national debt through a Bitcoin reserve is an intriguing concept that warrants further exploration. While VanEck’s estimate assumes aggressive growth rates for Bitcoin, it highlights the potential for this asset class to have a significant impact on global finance.

Estimated US National Debt Rise with Bitcoin Reserve Growth from 2025 to 2049

| Year | US National Debt (trillions) | Bitcoin Value (millions) |
| — | — | — |
| 2025 | $37 trillion | $200,000 |
| 2040 | $50 trillion | $1.4 million |
| 2045 | $65 trillion | $7.3 million |
| 2049 | $119.3 trillion | $42.3 million |

Estimates US National Debt and Bitcoin Reserve Holdings and Bitcoin Value at a Presumed CAGR of 25%

| Year | US National Debt (trillions) | Bitcoin Value (millions) | % of Global Financial Assets |
| — | — | — | — |
| 2025 | $37 trillion | $200,000 | 0.22% |
| 2049 | $119.3 trillion | $42.3 million | 18% |

Proposed Financing Options for the Bitcoin Reserve

1. Repurposing Seized Assets: The US could repurpose existing assets seized by law enforcement to finance the Bitcoin reserve.
2. Selling Gold Reserves: A portion of the US gold reserves could be sold to finance the Bitcoin reserve, without printing money or using taxpayer funds.
3. Emergency Support Functions: The remaining 801,900 Bitcoin required for the reserve could be financed through Emergency Support Functions.

Global Adoption and Impact on Bitcoin’s Price

As countries like those in the BRICS alliance adopt Bitcoin as a settlement currency, its price may increase due to increased demand. This could lead to a more stable and efficient global financial system.

Sources

• VanEck report (Dec 20)
• X post by Matthew Sigel (Dec 21)

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Market Updates

The cryptocurrency market has been experiencing fluctuations over the past few days. Various digital assets have shown significant price movements, with some showing promise while others are facing challenges.

Solana (SOL)

Solana’s SOL price turned down from $79.50 on December 15 and reached the 20-day EMA ($67.77) on December 18. The bulls have not allowed the SOL/USDT pair to close below the 20-day EMA since the start of the rally on October 16.

• Break of the level could trigger stops, leading to a decline to the 50-day SMA ($57.83) and potentially to $50.
• Bulls need to aggressively defend the 20-day EMA and propel the price above $80 to prevent the deeper pullback.

Cardano (ADA)

Cardano’s ADA rose above the $0.65 overhead resistance on December 13 but failed to sustain momentum, turning down on December 14 and dipping below $0.65.

• Sharp pullback from $0.68 indicates that bulls are booking profits in a hurry.
• The ADA/USDT pair may consolidate its recent gains in the next few days if the price rebounds off the 20-day EMA ($0.53).
• Break below the 20-day EMA could accelerate selling, opening the doors for a further fall to $0.46.

Avalanche (AVAX)

Buyers pushed Avalanche’s AVAX above the overhead resistance of $42.50 on December 16 and 17 but failed to sustain higher levels.

• The AVAX/USDT pair has started a pullback, with strong support at the 20-day EMA ($33).
• If the price rebounds off this level with strength, it will suggest that the sentiment remains positive.
• Break above $45 will signal the resumption of the uptrend, targeting $50.

Dogecoin (DOGE)

Dogecoin rebounded off the 20-day EMA ($0.09) on December 16 but failed to maintain higher levels, turning down on December 17 and plunging below the 20-day EMA on December 18.

• Price maintenance below the 20-day EMA will tilt the advantage in favor of the bears.
• The DOGE/USDT pair could plummet to the 50-day SMA ($0.08).
• Bulls need to quickly push the price back above the 20-day EMA to salvage the situation and maintain bullish momentum.

Market Sentiment

Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

This article is for informational purposes only and does not contain investment advice or recommendations. The market can be volatile, and prices may fluctuate rapidly.

Stay informed about market trends and developments by subscribing to our newsletter. Critical insights will help you spot investment opportunities, mitigate risks, and refine your trading strategies.