The cryptocurrency market faced a significant downturn following the announcement of President Donald Trump’s U.S. Bitcoin reserve plan
The initiative aimed to position the United States as a global digital asset leader fell short of market expectations, triggering a wave of selloffs.
Bitcoin, the flagship cryptocurrency, experienced a 3% drop, trading at $87,586.86 before dipping further to $84,688.13. Other major cryptocurrencies, including Ethereum, XRP, and Solana, also saw declines, with Cardano’s ADA token suffering a sharp 13% drop.
The market’s reaction underscores the gap between investor hopes and the plan’s immediate implications.
The executive order established a strategic bitcoin reserve funded exclusively by assets seized in criminal and civil proceedings. While this approach ensures no taxpayer burden, it disappointed investors who anticipated direct government purchases to bolster Bitcoin’s value.
White House Crypto and AI Czar David Sacks emphasised the reserve’s role as a ‘digital Fort Knox’, but the lack of immediate buy pressure dampened market sentiment.
The broader economic context also played a role. Weakness in equities and ongoing tariff concerns added to the uncertainty, compounding the market’s reaction.
Analysts noted that while the reserve plan is a step toward legitimising cryptocurrencies, its short-term impact on prices was underwhelming.
Despite the initial disappointment, the strategic reserve could have long-term benefits. By centralising and securing digital assets, the U.S. government aims to strengthen its position in the global financial system.
However, for now, the market remains volatile, reflecting the challenges of balancing innovation with investor expectations.
As the crypto landscape evolves, the success of such initiatives will depend on their ability to deliver tangible value to both the market and the broader economy.
Will the U.S. government create a strategic crypto reserve by directly buying the digital asset and holding it as a national reserve?
At this moment in time, only Trump has that ‘key’.
Bitcoin’s origin is one of the most captivating mysteries of the digital age. The cryptocurrency was created in 2008 by an unknown individual or group under the pseudonym Satoshi Nakamoto.
Despite numerous investigations, the true identity of Nakamoto remains shrouded in secrecy.
Story
The story of Bitcoin begins with the release of a whitepaper titled “Bitcoin: A Peer-to-Peer Electronic Cash System.” This document outlined a new kind of decentralised digital currency, one that relied on cryptographic principles to ensure security and prevent double-spending.
Nakamoto’s revolutionary vision was to create a financial system free from the control of traditional banks and government interference.
Genesis block
In January 2009, Nakamoto mined the first block of the Bitcoin blockchain, known as the ‘genesis block,’ marking the birth of the cryptocurrency. Over the next couple of years, Nakamoto continued to work on the project, communicating with other developers via email and online forums.
The mystery surrounding the origin of Bitcoin
However, by 2011, Nakamoto had largely stepped away from active involvement in the project, leaving behind a legacy that would forever change the financial landscape.
Speculation
Speculation about Nakamoto’s true identity has been rampant. Some believe Nakamoto is a single, exceptionally talented individual, while others theorise that it could be a group of developers working under a collective pseudonym.
Over the years, various names have been proposed as possible candidates, including renowned cryptographers, developers, and even eccentric entrepreneurs. Yet, none of these theories have been definitively proven, and Nakamoto’s identity remains a closely guarded secret.
Intrigue
The intrigue surrounding Nakamoto is not just a matter of curiosity but also of financial significance. As the creator of Bitcoin, Nakamoto is estimated to own around one million Bitcoins. At current market values, this makes Nakamoto one of the wealthiest individuals in the world.
Bitcoin chart from inception as of 7th November 2024 touching $75,000
Bitcoin chart from inception as of 7th November 2024 touching $75,000
However, these Bitcoins have never been moved or spent, adding to the enigma of Nakamoto’s motives and intentions.
Myth?
The myth of Satoshi Nakamoto has taken on a life of its own, becoming a symbol of the power and potential of decentralized technology. The anonymity of Nakamoto also serves as a reminder of the core principles behind Bitcoin: privacy, decentralisation, and freedom from traditional financial systems.
In a world increasingly dominated by surveillance and control, the mystery of Nakamoto provides a compelling counter-narrative, one that continues to inspire and intrigue both technologists and libertarians alike.
In the end, the true identity of Satoshi Nakamoto may never be revealed, and perhaps that is as it should be. The enduring mystery adds to the allure of Bitcoin, ensuring that its origins will forever be a topic of fascination and debate.
Cryptocurrencies fell on Tuesday evening 1st October 2024, with Bitcoin retreating to the $60,000 level following an unstable beginning to what is typically one of its best performing months.
Shares associated with digital currencies also fell in after-hours trading. Crypto exchange Coinbase saw a decline of about 1%, and MicroStrategy experienced a 2% drop, following a decrease of 7.4% and 3.5% at the close.
Escalating conflicts in the Middle East have curbed investors’ appetite for risk as the new trading month and quarter got underway. On Tuesday 1st October 2024, Iran executed a ballistic missile strike on Israel in response to the recent assassination of Hezbollah leader Hassan Nasrallah and an Iranian commander in Lebanon.
The growing turmoil in the Middle East has driven oil prices higher and bolstered the U.S. dollar, casting a shadow over Bitcoin and other speculative assets.
The retail investment platform Robinhood has announced the introduction of cryptocurrency transfers in and out of its app for European customers
As part of its international expansion efforts, the company aims to enhance its product offerings in the region.
According to a blog post-dated Tuesday 1st October 2024, Robinhood will enable customers within the European Union to deposit and withdraw over 20 different digital currencies via its platform, including Bitcoin, Ethereum, Solana, and USD Coin.
This development grants Robinhood’s European clientele the option of “self-custody” of assets, allowing them to personally hold their cryptocurrencies in a privately-owned wallet, rather than relying on a third-party service to manage their funds.
Bitcoin fell 7% Monday 11th December 2023 after touching $45,000 demonstrating its aptitude for volatility. A $5000 fall in 24 hours.
The move comes after a 12% tear for Bitcoin in December 2023 as expectations grew that the U.S. could soon approve its first spot bitcoin ETF.
Bitcoin has been on a steady climb in recent weeks, following a long period of market apathy that witnessed the price trade in a narrow range for months.
Bitcoin price as of Tuesday 12th December 2023
Bitcoin is a volatile investment – be VERY careful.
The sudden pullback triggered a spike in liquidations. Bitcoin: $146 million in long liquidations on Monday, and Ether: $100 million.
Other Altcoins such as: ADA, XRP fell in unison.
Bitcoin’s volatility will likely see it climb back to the $45,000 level quite quickly.
NOTE: Bitcoin can damage your wealth. Do your research!
Crypto, short for cryptocurrency, is a digital or virtual currency that uses cryptography for security and operates independently of a central bank. Cryptocurrencies are decentralised currencies, meaning they’re neither issued nor governed by a central bank.
Some cryptocurrencies are issued by their developers, while others are generated by their respective network algorithms. They exist and operate on a public ledger called a blockchain, which records all crypto transactions. Blockchain encryption is designed to make all transactions safe and secure from tampering, counterfeit, and other forms of fraudulent transactions.
‘Do you know what crypto is? Nope, absolutely no idea, do I need to?’
Digital Wallet
Cryptocurrencies can be stored in a ‘digital wallet’ on a smartphone or computer, and owners can send them to people to buy things. Although we can’t see or touch cryptocurrencies, they do hold value. Cryptocurrencies are now being used to purchase many different products and services, and some people are even buying cars and houses with their digital assets. They’re not widely used at the moment, but many believe the use of cryptocurrencies could one day become a common way to trade.
Is there a future for a digital currency?
However, the future of cryptocurrency is uncertain and opinions are divided. Some predict that institutional money entering the market and the possibility of crypto being floated on the Nasdaq could add credibility to blockchain and its uses as an alternative to conventional currencies. Others predict that regulators around the world might come together on a global framework for crypto regulation, but this looks unlikely right now. It is impossible to predict the future of the crypto market with absolute certainty.
Despite a strong start to 2023, some analysts remain cautious on growth and predict pressure for digital assets. Cryptography and blockchains will continue to be integral parts of the modern economic toolkit.
In conclusion, while there is no consensus on whether crypto is the future of currency, it is clear that it has the potential to play a significant role in the future of finance.
Stop crypto?
There is evidence to suggest that the US, EU, UK and other nations are trying to regulate the crypto market. Some people in the crypto world believe that recent attempts to ring fence the crypto industry and cut off its connectivity to the banking system are reminiscent of a little-known Obama-era program called ‘Operation Choke Point’. This refers to a 2013 US government initiative that sought to cut off undesirable industries from banking services.
Meltdown
The sector was already under pressure, after prices of virtual currencies collapsed last year. Further damage came from the meltdown of several high-profile firms, including FTX, run by the so-called ‘Crypto King’ Sam Bankman-Fried, whom prosecutors have accused of conducting ‘one of the biggest financial frauds’ in US history. Jolted by the turmoil, US regulators stepped up their policing of the sector, which authorities say has been on notice since at least 2017 and that their activity runs afoul of US financial rules intended to protect US investors.
Crackdown?
The campaign has yielded a steady drumbeat of charges against crypto firms and executives, alleging violations ranging from failing to register properly with authorities and provide adequate disclosure of their activity to, in some cases, more damaging claims such as mishandling of consumer funds and fraud. The crackdown culminated this month in legal actions against two of the biggest platforms: Coinbase and Binance.
However, during a hearing on cryptocurrency and blockchain technology regulation, Senate Banking Committee Chairman Mike Crapo shared his belief that the United States would not be able to succeed in banning Bitcoin.
In conclusion, while there is evidence that the US is trying to regulate the crypto market, it is not clear if they are trying to stop it completely and there is also evidence that suggests that the US would not be able to succeed in banning Bitcoin.
What was operation choke point?
‘Operation Choke Point’ was allegedly an initiative of the United States Department of Justice that began in 2013 under the Obama administration. The program investigated banks in the United States and the business they did with firearm dealers, payday lenders, and other companies believed to be at a high risk for fraud and money laundering. It was an attempt by President Obama’s Department of Justice, the Federal Deposit Insurance Commission, the Consumer Financial Protection Bureau, and other government agencies to cut off banking and financial services for small businesses and industries that they deemed to be illegal enterprises or otherwise undesirable.
