Table of Contents
- Top Stories (In No Particular Order)
- Crypto Experiences First "Crash" Since BTC Hit $100K - Panic or HODL?
- USA Makes Crypto Tailwinds as Ohio Introduces BTC Reserve, Trump Meets Crypto.com
- Eric Trump Confirms Crypto Tax Exemption on US-Based Projects
- Fed Rate Cut Jolts Bitcoin, Equities Markets as Inflation Concerns Persist
- BlackRock's New Bitcoin Video Slammed for Suggesting BTC Supply Might Change
- Germany Becomes Latest to Shun Worldcoin With Privacy Concerns
- SEC Approves Hashdex, Franklin Crypto Index ETFs
- Hong Kong Issues Four More Approvals for Crypto Exchanges
- MicroStrategy Joins Nasdaq 100 Thanks to Bitcoin
- Blockcast
- Events
- It's All Happening on LinkedIn
Be honest. This week's market dip made you quiver. But if you find yourself questioning everything you thought about crypto, bull markets, and life in general, fear not, we've got you.
With the S&P 500 marking its worst single-day performance since 2020 and it's worst "Fed day" since 2001, FUD flooded into the crypto markets. This market upset can be attributed to our friends at the Federal Reserve. Its latest decision to lower its policy rate to the 4.25-4.5% range also sent shockwaves through financial markets, despite Fed Chair Jerome Powell's attempts at calming sentiments.
Yesterday, Bitcoin dropped below $100,000 for the first time in weeks, sinking by over 5%, marking an 8% decline from recent highs. Altcoins fared even worse yesterday, with Ethereum and Solana losing over 4%, and Dogecoin down 7%. From their respective highs, BTC, ETH, SOL, XRP, DOGE and HYPE were down -8%, -11%, -23%, -13%, -23% and -17%. Most have fallen further today.
After weeks of upward momentum, spirits were dampened within the crypto community as reality struck in an all too familiar way.
But as the smart folks over at BRN astutely pointed out, "Despite short-term turbulence, the long-term outlook remains bullish."
"Given that market catalysts remain largely unchanged for the coming months, we still anticipate a strong bull run," BRN analyst Valentin Fournier explained in his daily view of the markets.
"However, the recent market expansion has not lasted or accelerated as we initially expected," he added. "With the current correction offering attractive entry points, we maintain our recommendation to stay heavily exposed and increase exposure with any available cash."
If you're still nervous, you needn't look further than the US for reassurance. This week, a lawmaker introduced a groundbreaking bill to establish a Bitcoin reserve fund within the state’s treasury, making Ohio the third US state to propose such legislation in just over a month.
Ohio House Republican leader Derek Merrin unveiled HB 703 on Tuesday, titling the bill "Ohio Bitcoin Reserve Act." The bill aims to grant the state treasurer the authority to purchase Bitcoin as part of a broader asset allocation strategy.
“The U.S. Dollar is being rapidly devalued, and our State Treasurer should have the authority and flexibility to invest in Bitcoin when determining proper asset allocation,” Merrin said in a statement. “Ohio must embrace technology and protect tax dollars from eroding.”
Meanwhile, Donald Trump has been busy meeting with the folks at Crypto.com. Rendezvousing at Mar-a-Lago, Trump hosted the cryptocurrency exchange's CEO, Kris Marszalek, for a discussion that could shape the crypto industry.
Meanwhile, Trump has been busy meeting with the folks at Crypto.com. Rendezvousing at Mar-a-Lago, Trump hosted the cryptocurrency exchange's CEO, Kris Marszalek, for a discussion that could shape the crypto industry.
Additionally, Trump's son, Eric, has confirmed plans to eliminate capital gains tax on cryptocurrencies. Speaking to Benzinga, Eric Trump said he would work alongside his father to position the US as a global hub for crypto.
He went on to emphasize his father's commitment to the crypto industry, highlighting how he has been "very transparent" about making "America the crypto capital of the world."
As briefly mentioned, Bitcoin and Ethereum haven't had the best of weeks with the former down 6.34% and the latter sinking 14.38%.
Risk appetites have cooled slightly from last week's 76, "Extreme Greed" to 74, "Greed."
The Fear & Greed Index uses 5-6 measurements to assess the current sentiment of the market and then rates that level of emotion on a scale of 1-100 – 1 is extreme fear and 100 is extreme greed.
As always, BRN is here to relieve your stress: "With the current correction offering attractive entry points, we maintain our recommendation to stay heavily exposed and increase exposure with any available cash."
Top Stories (In No Particular Order)
Crypto Experiences First "Crash" Since BTC Hit $100K - Panic or HODL?
Welcome to crypto, ladies and gentlemen. And to all crypto natives and degens, a warm welcome home. Like an overdue hangover from Bitcoin's $100K celebrations, the crypto industry has returned to its true form to bring us a very familiar FUD-induced migraine.
USA Makes Crypto Tailwinds as Ohio Introduces BTC Reserve, Trump Meets Crypto.com
America's crypto industry is continuing to make progress ahead of Donald Trump's looming presidency.
In Ohio, a lawmaker has introduced a groundbreaking bill to establish a Bitcoin reserve fund within the state’s treasury, making Ohio as the third US state to propose such legislation in just over a month.
Eric Trump Confirms Crypto Tax Exemption on US-Based Projects
President-elect Donald Trump's son, Eric, has confirmed plans to eliminate capital gains tax on cryptocurrencies but only those based in the US.
American cryptocurrencies including Algorand, Cardano, Ripple, and Hedera will all be tax-free under Trump. WEF member Shayan Salehi believes the move would "put non American crypto at a -37% tax disadvantage."
Fed Rate Cut Jolts Bitcoin, Equities Markets as Inflation Concerns Persist
The Federal Reserve’s latest decision to lower its policy rate to the 4.25-4.5% range has sent shockwaves through financial markets, including a significant impact on the crypto sector.
"I think we're in a good place, but I think from here it's a new phase and we're going to be cautious about further cuts," Fed Chair Jerome Powell said.
BlackRock's New Bitcoin Video Slammed for Suggesting BTC Supply Might Change
BlackRock has come under fire for a new video that suggests Bitcoin's supply could "be changed."
The video, which highlights Bitcoin’s fundamentals to support BlackRock's iShares Bitcoin Trust (IBIT) ETF, was posted on the asset manager's website and shared widely across social media. Even MicroStrategy's Michael Saylor drew attention to it, tweeting, "BlackRock explains #Bitcoin."
Germany Becomes Latest to Shun Worldcoin With Privacy Concerns
Germany has ordered Worldcoin to implement stricter privacy measures following an investigation into the crypto firm.
The Bavarian State Office for Data Protection Supervision (BayLDA) concluded its investigation into Worldcoin’s (WLD) biometric data practices and instructed the firm to establish a General Data Protection Regulation (GDPR)-compliant data deletion process within a month.
SEC Approves Hashdex, Franklin Crypto Index ETFs
The U.S. Securities and Exchange Commission (SEC) has granted approval for two crypto index exchange-traded funds (ETFs) from Hashdex and Franklin Templeton, marking a significant step in the evolution of regulated crypto investment products.
Hong Kong Issues Four More Approvals for Crypto Exchanges
Hong Kong has approved four new cryptocurrency exchanges as part of the city's ongoing efforts to establish itself as a global hub for digital asset trading.
The newly licensed platforms include Accumulus GBA Technology Co., DFX Labs Company, Hong Kong Digital Asset EX, and Thousand Whales Technology (BVI).
MicroStrategy Joins Nasdaq 100 Thanks to Bitcoin
MicroStrategy has qualified to join the Nasdaq-1o0 Index following a series of sizeable Bitcoin purchases.
The inclusion will occur on 23 December, ahead of market opening, and is expected to bolster the firm's stock value as the ETFs tracking the index will acquire MicroStrategy shares to mirror its performance.
Sygnum Partners Moomoo in Singapore to Offer Crypto Investment Fund
Sygnum's Singapore arm has partnered with trading platform Moomoo Singapore to distribute its Digital Asset Multi-Manager Fund (DAMMF).
Exclusively for accredited investors, the fund will be available on the Moomoo platform, marking a strategic milestone for both organizations in expanding access to digital asset investment opportunities within Singapore’s regulated environment.
Blockcast
In this episode, Takatoshi Shibayama sits down with CEO of Future DAO and Ethelo Decisions, Mathew Markman.
Blending Web3 with cutting-edge decision-making tools to empower communities and transform financial and governance systems, Markman has made significant strides in the Web3 space.
Previous episodes of Blockcast can be found on Podpage, with guests like Peter Hui (Moongate), Luca Prosperi (M^0), Charles Hoskinson (Cardano), Aneirin Flynn (Failsafe), and Yat Siu (Animoca Brands) on our most recent shows.
Events
Consensus (Hong Kong, 18-20 February)
Consensus is heading to Hong Kong, bringing together the industry’s most important voices from East and West for pivotal conversations and deal-making opportunities.
Consensus Hong Kong convenes global leaders in tech and finance to debate pressing issues, announce key developments and deals, and share their visions for the future.
Use promo code BLOCKDESK20 at checkout for a 20% discount on tickets here.
It's All Happening on LinkedIn
Did you know you can now receive Blockhead's juicy daily newsletters directly to your LinkedIn? Subscribe to our LinkedIn newsletters for the latest news and insights in the world of Web3. There also might be the occasional discount code for the industry's hottest events, exclusively for subscribers!