Tag: Bitcoin

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Bitcoin and ether drop amid grim inflation outlook – tariff uncertainty

Crypto fear factor

Crypto faces market turmoil mid economic concerns

The cryptocurrency market has been rocked by significant declines in two of its flagship assets, Bitcoin and Ether.

This downturn reflects mounting concerns over broader economic challenges, including inflationary pressures and uncertainties surrounding Trump’s global trade tariffs.

Snapshot data from CMC

Bitcoin, often seen as a digital gold and a hedge against traditional financial instability, saw its value dip below $80,000. Similarly, Ether, the second-largest cryptocurrency by market capitalisation, tested the $2,100 threshold, shaking investor confidence.

Cryptocurrency fear and greed index chart from CMC

Cryptocurrency fear and greed index from CMC

The decline comes as central banks continue to grapple with persistent inflation, leading to speculation about further interest rate hikes. These economic conditions have raised fears that tighter monetary policies could dampen the speculative fervour that has long driven crypto markets.

In parallel, ongoing uncertainties about global trade tariffs have added another layer of complexity. Concerns about supply chain disruptions and escalating trade tensions have created a cautious environment for investors, spilling over into the volatile cryptocurrency sector.

While cryptocurrencies are no stranger to price swings, the current drop underscores their vulnerability to macroeconomic trends. As investors await clarity on inflation and tariff policies, the market could remain turbulent in the near term.

The resilience of Bitcoin and Ether will likely be tested as they navigate these economic headwinds.

Gold, however, has recently touched new all-time highs.

One year gold price chart – new all-time high!
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Trump Media shares gain after Crypto.com announce ETF deal

Crypto ETF

Trump Media & Technology Group (TMTG) has made headlines with its latest announcement of a partnership with Crypto.com to launch a series of exchange-traded funds (ETFs) and related products.

This news has sparked a surge in TMTG’s stock, which rose by approximately 9% in after-hours trading, despite a challenging year that saw the stock down 38% prior to this development. Will the gain hold?

The ETFs, branded under TMTG’s fintech arm are set to focus on a ‘Made in America’ theme, incorporating a mix of digital assets like Bitcoin and Cronos (Crypto.com’s native token) alongside traditional securities.

Crypto.com will play a pivotal role in this venture, providing backend technology, custody, and cryptocurrency supply for the ETFs.

The products are expected to be available internationally, including in Europe and Asia, through major brokerage platforms and the Crypto.com app, which boasts a global user base of 140 million.

This partnership marks another step in TMTG’s foray into the digital asset space, following previous ventures into non-fungible tokens (NFTs) and meme coins.

The move also highlights the growing intersection between traditional finance and cryptocurrency, as companies seek to innovate and diversify their offerings in a competitive market.

While the announcement has generated excitement, it also raises questions about the regulatory landscape and the sustainability of such ventures.

As TMTG and Crypto.com prepare to launch these ETFs later this year, pending regulatory approval, the financial world will be watching closely to see how this collaboration unfolds and its impact on the broader market

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‘A pig in lipstick’ – Trump’s strategic Bitcoin reserve criticised

Pig in lipstick

The announcement of Donald Trump’s Strategic Bitcoin Reserve has sparked a wave of criticism and debate, with detractors likening the initiative to ‘a pig in lipstick’ – a superficial attempt to dress up a flawed concept.

The reserve, which aims to stockpile or create a strategic reserve Bitcoin seized through criminal and civil forfeitures, has been touted as a bold move to position the United States as a leader in the cryptocurrency space. However, critics argue that the plan is fraught with risks and questionable motives.

One of the primary concerns is Bitcoin’s notorious volatility. Unlike traditional reserve assets such as gold or oil, Bitcoin’s value can fluctuate wildly, making it a precarious choice for a national reserve.

Economists warn that integrating such an unpredictable asset into government holdings could destabilise financial strategies rather than strengthen them.

Moreover, the initiative has raised eyebrows over its potential conflicts of interest. Critics point out that Trump’s administration has shown a growing affinity for cryptocurrency, with some officials previously holding stakes in digital assets.

This has led to accusations that the reserve could serve as a vehicle for personal or political gain rather than a genuine effort to bolster national economic security.

Supporters of the reserve argue that it represents a forward-thinking approach to embracing digital assets as ‘digital gold.’ They believe that retaining seized Bitcoin, rather than auctioning it off, could provide long-term financial benefits and signal the U.S.’s commitment to innovation in the crypto space.

However, even some crypto enthusiasts are skeptical, questioning whether the reserve’s creation is more about optics than substance.

In the end, the Strategic Bitcoin Reserve has ignited a broader conversation about the role of cryptocurrency in national policy. Whether it proves to be a visionary move, or a misguided gamble remains to be seen.

For now, the debate goes on.

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Trump’s U.S. Bitcoin reserve plan falls short of expectations

National U.S. crypto reserve

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’.

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Trump announces strategic crypto reserve to including Bitcoin – Solana – XRP – Cardano and Ethereum

Crypto reserve

President Donald Trump has announced the creation of a ‘strategic crypto reserve’ that will include Bitcoin, Ethereum, XRP, Solana, and Cardano.

This move aims to position the United States as the ‘crypto capital of the world’ and has already led to significant price increases for these cryptocurrencies.

The announcement was made on Truth Social, where Trump emphasised the importance of elevating the crypto industry after what he described as years of corrupt attacks by the previous administration.

This is the first time Trump has specified his support for a crypto ‘reserve’ versus a ‘stockpile’.

Many crypto investors feel strongly that a crypto reserve should hold only Bitcoin, while some reject the idea of a reserve holding digital assets altogether.

Cryptocurrencies instantly rallied after President Donald Trump announced the creation of a strategic crypto reserve.

Crypto coins have since lost some of those initial gains.

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Bitcoin hits reverse after Trump election pump!

Bitcoin

This week has seen a decline in Bitcoin with the digital asset hitting a 3-month low, reversing gains that followed the election of U.S. President Donald Trump.

Bitcoin was trading at about $78,700 in trading in Asia, down 5.5% on the day and about 25% lower than an all-time high from December 2024.

Bitcoin 3-month chart as of 28th February 2025 (08:45 GMT)

Bitcoin 3-month chart as of 28th February 2025 (08:45 GMT)

Bitcoin slips

Bitcoin had enjoyed a surge in prices following Trump’s election victory in November 2024, with Trump having posed himself as a pro-crypto candidate during his campaign.

However, prices have slipped as investors turn-away from assets perceived to be too risky given the weakness in global equity markets and amid uncertainty surrounding the new President’s tariff policy and resolutions to the Russia-Ukraine and Israel-Gaza wars.

Investor sentiment was also soured by news that Bybit, a major cryptocurrency exchange, suffered a $1.5 billion hack in what’s estimated to be the largest crypto heist in history.

Bitcoin ETF activity is still prominent.

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Hackers steal $1.5 billion from Bybit exchange

Crpto theft

Bybit, one of the world’s largest cryptocurrency exchanges, has fallen victim to the biggest crypto heist in history

Hackers managed to steal a staggering $1.5 billion in digital assets, primarily in Ethereum, from Bybit’s cold wallet, an offline storage system designed for ‘security’.

This breach has sent shockwaves through the cryptocurrency community, raising concerns about the security of digital assets.

The attack, which occurred on 21st February 2025, was reportedly traced back to the notorious North Korean hacking group, Lazarus. Known for their sophisticated cyber-attacks, the Lazarus Group exploited vulnerabilities in Bybit’s security infrastructure to gain access to the cold wallet.

Once inside, they swiftly transferred the stolen funds across multiple wallets and liquidated them through various platforms.

Bybit’s CEO, Ben Zhou, reassured users that all other cold wallets remained secure and that withdrawals were operating normally. However, the breach triggered a rush of withdrawals as users feared potential insolvency.

To mitigate the impact, Bybit secured a bridge loan from undisclosed partners to cover any unrecoverable losses and maintain operations.

Blockchain analysis firms, including Elliptic and Arkham Intelligence, have been working tirelessly to trace the stolen assets.

They have labelled the thief’s addresses in their software to prevent the funds from being cashed out through other exchanges. Despite these efforts, the stolen funds are being systematically moved through anonymous exchanges, making it challenging to recover the assets.

This incident highlights the ongoing risks associated with cryptocurrency exchanges and the need for robust security measures. As the industry grapples with the aftermath of this unprecedented heist, experts warn that large-scale thefts remain a fundamental risk in the digital asset space.

Bybit’s response and the collaborative efforts of the crypto community will be crucial in restoring trust and preventing future breaches.

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Gold or Bitcoin?

Gold or Bitcoin

Gold or Bitcoin: Which Is a Better Investment?

When it comes to investing, two assets often come to mind: gold and Bitcoin.

Both have their unique advantages and disadvantages, and choosing between them depends on your investment goals, risk tolerance, and market outlook.

Historical performance

Gold has been a reliable store of value for thousands of years. Its price has seen steady growth, with a notable increase of 60% from 2010 to 20241.

During the 1970s inflation crisis, gold rose by 2,300%, showcasing its ability to hedge against inflation. Gold ETFs have grown to around $270 billion in assets under management (AUM) by 2024.

Impressive growth some would say but wait… there’s a new kid on the block.

Bitcoin, on the other hand, is a relatively new asset, introduced in 2009. Despite its short history, Bitcoin has seen explosive growth, surging from $4 in 2011 to over $106,000 in 2024 – a growth of more than 2 million percent.

During the 2020-2024 inflationary cycle, Bitcoin increased by 1,185%, highlighting its potential as an inflation hedge.

Volatility and risk

Gold is known for its stability and long-term value preservation. Its volatility index (VIX) is relatively low, making it a safe haven during economic downturns. Investors with long-term goals often prefer gold for its consistent performance and lower risk.

Bitcoin, however, is highly volatile. Its price can fluctuate dramatically within short periods, making it a riskier investment. While Bitcoin offers the potential for high returns, it also comes with the possibility of significant losses. Investors must be prepared for the market’s ups and downs and have a higher risk tolerance.

Inflation hedging

Both gold and Bitcoin are considered effective hedges against inflation. Gold has a long history of maintaining its value during inflationary periods, making it a trusted asset for wealth preservation.

Bitcoin, as a digital asset, has gained recognition as ‘digital gold’ and is increasingly seen as a viable alternative for hedging against inflation.

Regulatory environment

Gold is a well-established asset with a clear regulatory framework. Central banks worldwide hold significant gold reserves, underscoring its role in financial stability. Bitcoin, however, operates in a relatively new and evolving regulatory landscape.

While some countries have embraced Bitcoin, others have imposed restrictions or bans, adding an element of uncertainty to its future.

Accessibility and liquidity

Gold is a tangible asset that can be easily bought and sold. It is widely accessible and has a liquid market, allowing investors to enter and exit positions with ease.

Bitcoin, while also highly liquid, requires a digital wallet and an understanding of cryptocurrency exchanges. Its accessibility can be limited by regulatory and technological barriers.

Is there a conclusion?

Choosing between gold and Bitcoin depends on your investment goals and risk tolerance. Gold offers stability, long-term value preservation, and a lower risk profile, making it suitable for conservative investors.

Bitcoin, with its potential for high returns and inflation hedging, appeals to those with a higher risk tolerance and a belief in the future of digital assets.

Ultimately, diversifying your portfolio with both assets can provide a balanced approach, combining the stability of gold with the growth potential of Bitcoin.

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Trump’s SEC prepares new ‘crypto task force’ to regulate the industry

Crypto regulation

On 21st January 2025, the U.S. Securities and Exchange Commission (SEC) announced the formation of a new cryptocurrency task force under the leadership of President Donald Trump.

This initiative marks a significant shift in the regulatory landscape for digital assets, aiming to provide a comprehensive and clear framework for the industry.

Task force

The task force, led by Commissioner Hester Peirce, also known as ‘Crypto Mom,’ is designed to address the regulatory challenges that have plagued the crypto industry for years.

The primary objectives of the task force include drawing clear regulatory lines, providing realistic paths to registration, crafting sensible disclosure frameworks, and deploying enforcement resources judiciously.

This approach contrasts sharply with the previous administration’s reliance on enforcement actions, which often left the industry in a state of confusion and uncertainty.

The announcement has generated a wave of optimism among crypto enthusiasts and investors. The price of Bitcoin, for instance, saw a notable increase following the news, reflecting the market’s positive reception.

But before this announcement, Bitcoin was already in an upward trajectory following the positive news swirling around Trump after he won the U.S. election.

Industry leaders are hopeful that the new regulatory environment will foster innovation while protecting investors and maintaining market integrity.

Commodity Futures Trading Commission

One of the key aspects of the task force’s mandate is to collaborate with other government agencies, Congress, and international bodies to ensure a cohesive regulatory approach.

This includes working closely with the Commodity Futures Trading Commission (CFTC) and other federal departments to harmonize regulations and provide technical assistance to Congress as it considers changes to the existing legal framework.

The task force’s formation is seen as a pivotal moment for the crypto industry, signalling a more welcoming and structured regulatory environment. As the task force begins its work, the industry eagerly anticipates the development of clear and practical guidelines that will support the growth and maturation of the digital asset market.

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What could quantum computing breakthrough ‘Willow’ mean for the future of Bitcoin and other cryptos

Crypto and quantum computing

The advent of quantum computing presents both opportunities and challenges for the field of cryptography, especially in relation to cryptocurrencies.

Quantum computers, leveraging the principles of quantum mechanics, have the potential to revolutionise computing by solving certain problems significantly faster than classical computers.

One of the primary concerns is the impact of quantum computing on cryptographic algorithms that underpin the security of cryptocurrencies like Bitcoin and Ethereum.

Traditional public-key cryptography, which relies on the difficulty of factoring large prime numbers or solving discrete logarithms, could be broken by a sufficiently powerful quantum computer. Algorithms such as RSA, ECC (Elliptic Curve Cryptography), and DSA (Digital Signature Algorithm) could become vulnerable, as quantum algorithms like Shor’s algorithm are capable of efficiently solving these problems.

This potential vulnerability poses a significant threat to the security and integrity of cryptocurrency transactions. If quantum computers can crack these cryptographic codes, they could potentially access private keys, allowing malicious actors to steal funds or forge transactions. As a result, the trust that underpins the entire cryptocurrency ecosystem could be eroded.

However, the quantum threat is not without its solutions. The field of post-quantum cryptography is actively developing new cryptographic algorithms that are resistant to quantum attacks.

These algorithms leverage mathematical problems believed to be hard even for quantum computers, such as lattice-based cryptography, hash-based cryptography, and multivariate polynomial cryptography.

Transitioning to post-quantum cryptographic algorithms is crucial for ensuring the long-term security of cryptocurrencies in a quantum computing era.

In conclusion, while quantum computing poses a formidable challenge to current cryptographic systems, proactive measures and the development of quantum-resistant algorithms can mitigate these risks.

The cryptocurrency industry must stay ahead of the curve, adopting new technologies and strategies to safeguard against potential quantum threats and ensure the continued security and trust in digital currencies.

It has been estimated that the arrival of quantum computer is at least 10 years away. But is that allowing for the use of AI in its creation?

What is Willow and Quantum Computing?

Willow is the start of a new era of ultra-powerful ‘quantum’ microchips designed by Google. Willow’s speed is almost incomprehensible – according to Google, it is able to perform a computation in under five minutes that would take one of today’s fastest supercomputers 10 septillion years to solve.

This new chip design will inevitably lead to new quantum innovations and computer design over the coming years.

Ten septillion is 10,000,000,000,000,000,000,000,000 years.

If you don’t understand (not many people do) what makes up quantum computing – there is a very simplified way simplified way of thinking about the breakthrough.

Imagine a maze and how a classical computer would try to find its way through the maze from start to finish. It would try one potential path at a time. A quantum computer would be able to try each path at the same time.

The quantum computer is coming. The only delay will be in design restrictions and the power needed to run the system.

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Bitcoin breaks the $100,000 barrier

In a historic moment for the cryptocurrency world, Bitcoin has finally breached the $100,000 mark.

This milestone, reached on 5th December 2024, signifies a notable triumph for Bitcoin enthusiasts and investors who have endured the market’s volatility over the years.

The cryptocurrency value surge past $100,000 followed Donald Trump’s election as President of the United States. Trump’s favorable stance on crypto and his commitment to deregulate the sector are believed to have enhanced investor confidence. The momentum was further increased by his decision to nominate Paul Atkins, a recognized proponent of cryptocurrency, as the new chairman of the Securities and Exchange Commission (SEC).

Since the creation of the first Bitcoin ETF there have been massive inflows invested in this asset helping to push Bitcoin ever higher.

Bitcoin’s ascent to $100,000 has been tumultuous. Beginning the year at approximately $38,505, the cryptocurrency has experienced an impressive 155% increase to date. The surge was especially notable in the fortnight after Trump’s victory, with Bitcoin’s value soaring by about 45%.

Bitcoin’s ascent has triggered a ripple effect throughout the wider cryptocurrency market, now valued at a combined $3.78 trillion. This upsurge has reinforced Bitcoin’s preeminence in the digital asset arena and garnered considerable interest from institutional investors.

Despite the festive atmosphere, some analysts warn that Bitcoin’s well-known volatility is still worrisome. Although numerous investors have realized significant profits, the asset’s high-risk profile may not be appropriate for all. Nevertheless, the prevailing mood within the cryptocurrency community is one of optimism, fueled by the expectation that the incoming administration will create a regulatory climate more conducive to digital assets.

Bitcoin’s record-breaking streak continues, signaling a bright future for the renowned cryptocurrency. Its evolution from a peer-to-peer electronic cash system to a trillion-dollar asset highlights the revolutionary impact of blockchain technology.

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Bitcoin’s flirt with $100,000 may be one bitcoin too far

Bitcoin

Bitcoin flirted with the $100,000 mark, coming within less than $1,000 of that psychological threshold. However, it failed to breach this peak, falling back to as low as $90,702. on Tuesday 26th November 2024. It has since rallied, trading at approximately $96,697 early on 29th November 2024. But still off the $100,000 barrier.

Investors taking profits

One factor contributing to the fall was investors capitalising on Bitcoin’s exceptionally high price, which increased the supply of Bitcoin. Long-term holders began to release substantial quantities of Bitcoin during the recent surge.

However, there are deeper reasons why some strategists remain uncertain about Bitcoin’s ability to reach the six-figure milestone. The $100,000 mark seems to have become a significant obstacle, if not an outright barrier, to further increases.

Leveraged to the hilt

Indeed, the recent surge in Bitcoin’s value could be instilling a misleading sense of confidence among investors. Viewing Bitcoin as a speculative bet or a means to achieve returns, it appears that investors are flocking to Bitcoin primarily for potential capital gains rather than its intrinsic value or practical applications.

The recent introduction of options for spot Bitcoin exchange-traded funds could be influential. Options provide investors with a way to speculate on Bitcoin’s price fluctuations without the need to invest in Bitcoin directly.

It’s leveraged to the hilt and there most likely will be a correction anytime soon.

That being said, a correction does not equate to lasting deflation. Should even a portion of U.S. President-elect Donald Trump’s commitments to the cryptocurrency sector materialise, the $100,000 mark might not represent a peak, but merely another milestone that Bitcoin surpasses during its triumphant ascent.

But remember, in my opinion and for what it’s worth – it is just a punt, not an investment.

Bitcoin one-day chart as of 29th November 2024 (11:16 am)

Bitcoin one-day chart as of 29th November 2024 (11:16 am)
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Securities and Exchange Commission Chair Gary Gensler’s resignation is good news for crypto

Bitcoin

Bitcoin reaches a new record high, nearing the $100,000 mark as the cryptocurrency rally marches on.

Other altcoins are rallying too, basking in the aftermath of the SEC resignation news.

Gary Gensler, Chair of the Securities and Exchange Commission, will step down on 20th January 2025 (Trumps inauguration day), an announcement made by the SEC on Thursday 21st November 2024, which clears the path for President-elect Donald Trump to appoint a more crypto friendly successor.

During Gensler’s tenure, the SEC engaged in numerous high-profile conflicts with the cryptocurrency industry, including a lawsuit against Grayscale over Bitcoin ETFs – a case Grayscale won, leading to a significant influx of capital into these funds since their inception in January.

The SEC has also pursued legal action against several major digital asset firms concerning their crypto dealings, such as Coinbase, with varying outcomes.

Additionally, the SEC has been in conflict with Tesla CEO Elon Musk, particularly regarding his acquisition of the social media company Twitter, now known as X, for $44 billion in 2022. The commission is currently seeking sanctions against Musk for failing to appear for court-mandated testimony related to this matter.

Under Gensler’s leadership, the SEC has scrutinised Musk’s adherence to a previous settlement that mandated a securities lawyer review certain Tesla-related social media posts before they were published.

Musk, a vocal critic of the SEC who supported Trump’s election campaign with his time and a donation of at least $130 million and campaigned alongside him, is poised to join the incoming administration as a co-leader of the newly proposed Department of Government Efficiency (DOGE).

With Gensler’s impending departure and the upcoming expiration of the terms for two other commissioners, Trump will have the chance to significantly influence the future composition of the SEC.

A green light for crypto investors, but a worry (maybe) for the retail trader long-term?

Bitcoin one-day chart as of 22nd November 2024 (09:49am GMT) – Snapshot

Bitcoin one-day chart as of 22nd November 2024 (09:49am GMT)

Bitcoin one-year chart as of 22nd November 2024 (09:51am GMT) – Snapshot

Bitcoin one-year chart as of 22nd November 2024 (09:51am GMT)
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Trump U.S. election win drives gold price down and Crypto up!

Gold prices have fallen to near a two-month low as the dollar strengthens in the wake of Donald Trump’s election victory last week.

This downturn has halted the bullion’s rally, which had achieved a series of record highs over the past year. Gold has seen a decline in six of the seven most recent trading sessions following Trump’s win, interrupting its streak of record-breaking milestones over the last twelve months.

On the other hand, Crypto has relished the Trump pump with Bitcoin and many altcoins setting new all-time highs!

Gold price charts – 3 month and one-year snapshot as of: 15th November 2024 (08:10 GMT)

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Bitcoin breaks $82,000 with billions bet on it reaching $90,000

Bitcoin

Bitcoin has achieved a new all-time high, surpassing $82,000, and has continued to climb.

This suggests that investors are confident the world’s leading cryptocurrency will gain even more, following U.S. elections that resulted in a significant number of pro-crypto candidates being elected.

During his campaign, President-elect Donald Trump vowed to make the United States the ‘crypto capital of the world.’

Trump reportedly committed to several initiatives for the crypto community, such as creating a national cryptocurrency reserve using $16 billion in Bitcoin accumulated by the U.S. government from asset seizures and from reducing interest rates.

Generally, an easing of monetary policy aligns with an increase in cryptocurrency prices, as it lowers the cost of borrowing money.

The Fed recently lowered U.S. interest rates for the second time this year.

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The mystery surrounding the origin of Bitcoin

Origin of Bitcoin

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.

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Bitcoin and altcoins rocket to new highs hot on the heels of Trump win!

Bitcoin new high!

Bitcoin, which could benefit from relaxed regulation, soared to an all-time high and topped $76,000.

Bitcoin rallied Wednesday 6th November 2024, hitting all-time highs as former President Donald Trump defeated Vice President Kamala Harris to win the election an become the 47th U.S. president.

The price of Bitcoin touched a fresh record of $76,493.86.

Bitcoin one-month chart as of 6th November 2024 – New high!

Bitcoin hits new all-time high of $76,493.86 6th November 2024

Trump’s support for crypto

The ‘noises’ around the Trump trade for crypto are reportedly of deregulation, potential tax cuts for an asset that is both held long term but also day traded, less dependency on government financial institutions and the Fed and maybe seen as an alternative as a decentralised currency. Trump has previously indicated support of risk assets and the growth of crypto.

Ether surged 11%, while Solana, rocketed 13%. Payment system token XRP jumped more than 5%. Meanwhile, Meme coins soared, with Dogecoin up more than 15%.

Shares of Coinbase surged around 31%%, posting its best day on record since its first day of trading. MicroStrategy, which has a high correlation play on the price of Bitcoin, advanced 13%.

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Ripple diversifies to launch crypto storage service for banks

XRP Ripple system

Ripple has announced the launch of a range of features designed to assist banks and fintech’s with the storage of digital tokens, marking a significant expansion into the realm of crypto custody.

Crypto custody services, which support clients in managing their crypto assets, represent a new venture for Ripple, now unified under the brand Ripple Custody.

The company is best known for its XRP cryptocurrency and RippleNet, a distributed ledger platform facilitating fast interbank payments.

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Bitwise files for first-ever spot XRP ETF

XRP ETF

Bitwise Asset Management, a prominent player in the cryptocurrency investment space, has recently made headlines with its filing for a spot XRP exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC).

This move marks a significant milestone as it is the first attempt to create an ETF specifically for XRP, the native token of the XRP Ledger.

The proposed Bitwise XRP ETF aims to provide investors with direct exposure to XRP through traditional brokerage accounts. This will make it easier for both institutional and retail investors to gain access to this digital asset. Bitwise’s decision to pursue an XRP ETF underscores the growing recognition of XRP’s potential and its established presence in the cryptocurrency market.

Bitwise is no stranger to the ETF landscape, having successfully launched Bitcoin and Ethereum ETFs in the past. The company’s experience and reputation in managing crypto assets lend credibility to this new venture. However, the approval process for the XRP ETF is expected to be rigorous, given the SEC’s cautious approach to cryptocurrency-related financial products.

The filing comes at a time when the cryptocurrency market is experiencing increased interest from mainstream investors. XRP, known for its fast transaction speeds and low fees, has been a popular choice for cross-border payments and remittances. If approved, the Bitwise XRP ETF could attract a new wave of investors looking to diversify their portfolios with digital assets.

While the SEC’s decision is still pending, the filing itself is a testament to the evolving landscape of cryptocurrency investments. There is a growing acceptance of digital assets in traditional financial markets. Investors and crypto enthusiasts alike will be watching closely as this development unfolds.

Others will likely follow suit.

XRP 7-day chart from CoinMarketCap

Note the timing of the ETF announcement and the subsequent drop in XRP price.

XRP 7-day chart from CoinMarketCap. Note the timing of the ETF announcement and the subsequent drop in XRP price.

Note: article written by AI

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Bitcoin tumbles back to the $60000 level after mini rally

Crypto

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.

Bitcoin 7-day chart from CoinMarketCap

Bitcoin 7-day chart from CoinMarketCap
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Robinhood launches crypto transfers in Europe directly through its app

Crypto exchange

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.

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Bitcoin and Ether sink as $270 billion wiped off Crypto

Crypto sell-off

The cryptocurrency market experienced a significant plunge on Sunday/Monday, 5th August 2024, losing approximately $270 billion in value within a 24-hours.

Both Bitcoin and Ether underwent substantial declines as investors moved away from high-risk assets. This downturn followed the Nasdaq’s worst three-week performance in two years and occurred as the Nikkei 225 reached a low not observed since the Black Monday crash of 1987.

Bitcoin chart – CoinMarketCap – 5th August 2024

Nikkei chart – one year

Nikkei index
Nikkei index one year chart
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Ether ETFs launched in the U.S. on 23rd July 2024 with BlackRock, Grayscale and others

Ethereum ETF in U.S.

Bitcoin is often likened to a type of digital gold, but Ether is seen more as a native cryptocurrency on the Ethereum blockchain.

It is generally seen as a trade or bet on the growth and of the development of the blockchain and of crypto more widely.

Many of the funds set to launch this week have temporarily waived fees in an attempt to attract buyers.

The Securities and Exchange Commission (SEC) has historically been wary of cryptocurrencies. However, the regulator was defeated in a legal battle last year concerning Bitcoin ETFs, which aided their launch in January 2024.

Given that both Bitcoin and Ether have regulated futures markets, the introduction of ether ETFs was viewed as the industry’s subsequent rational progression.

Bitcoin ETFs have attracted about $17 billion in net inflows since their launch in January 2024.

What is An Ethereum ETF?

An Ethereum ETF, or Ether ETF, is an exchange-traded fund that tracks the price of ether (ETH), the cryptocurrency with the second-highest market capitalization following Bitcoin. Unlike purchasing Ethereum on a cryptocurrency exchange, an Ethereum ETF is bought and sold on traditional stock exchanges.

How an Ethereum ETF works

An Ethereum ETF contains futures contracts linked to Ethereum’s price movements. These contracts enable investors to speculate on Ethereum’s future price without the need to own the cryptocurrency directly.

Investing in an Ethereum ETF offers exposure to Ethereum’s price volatility while eliminating the need to handle wallets or navigate the intricacies of cryptocurrency exchanges. Such ETFs offer traditional investors a practical avenue to engage with the cryptocurrency market, leveraging the conventional environment of stock exchanges.

Ethereum one year price chart as at: 16:10 BST 23rd July 2024 from CoinMarketCAP

Ethereum one year price chart as at: 16:10 BST 23rd July 2024 from CoinMarketCAP
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Market rotation helps Dow to a 743-point one day gain to close at a record high. Russell 2000 and crypto benefit

Broad market Bull run

The Dow Jones Industrial Average closed at a record high Tuesday 16th July 2024, rallying 743 points for its biggest one-day increase in more than a year, as the bull run appeared to broaden.

The small cap-focused Russell 2000 also rose for the fifth straight day, rising 3.5% fast closing in on a new record high as the money continues to rotate from tech stocks.

Russell 2000 index one year chart

The Dow Jones finished at 40,954, marking an increase of 1.85% for the day. It has experienced consistent daily gains since the previous week, culminating in an overall rise of over 4% over the past five trading days. The closing value on Tuesday 16th July 2024 represents the largest single-day gain since June 2023.

Dow one year chart as at: 16th July 2024

The market saw an uptick amidst a broader rally, driven by the news that June retail sales exceeded expectations, strong earnings reports to date, and the expectation of a benchmark interest rate reduction by the Federal Reserve in September.

Positive remarks from the Federal Reserve about potential interest rate cuts are bolstering market sentiment. Additionally, the buzz surrounding Trump’s re-election campaign and the recent assassination attempt on Trump at one of his election rallies seem to be influencing market movements as well.

However, Donald Trump reportedly said Taiwan should pay the U.S. for defence, in an interview with Bloomberg Businessweek published on Tuesday 16th July 2024. His comment had a negative impact on chip and tech stocks.

Crypto is enjoying the market rotation as more money is being ploughed back into cryptocurrencies. Bitcoin jumped from a low point in July 2024 of just below $56,000. Altcoins are also enjoying a mini-recovery.

Bitcoin benefitting from markets rotation – one year chart

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Which governments hold the most Bitcoin?

Bitcoin cartoon

U.S., UK and Germany hold more Bitcoin than you may think.

According to the Arkham website, the United States’ government holds some 212,847 BTC making it one of the biggest holders of Bitcoin, while the treasuries of the U.K. and Germany reportedly hold around 61,245 BTC and 49,858 BTC each. (These values alter daily).

In addition to Bitcoin, the U.S. government also holds around $200 million in other cryptocurrencies like Ether (ETH), as well as major stablecoins like USDC.

U.S. Bitcoin holding by current value according to Arkham

Data from Arkham (as of 12th July 2024)

Arkham, a crypto intelligence platform focused on deanonymizing entities on the blockchain network, has introduced a dashboard featuring the governments with the largest crypto holdings.

The U.K. government, reportedly ranked second, holds around $3.5 billion worth of Bitcoin at current valuations, according to Arkham’s data. The German government owns roughly $2.5 billion.

UK Bitcoin holding by current value according to Arkham

Data from Arkham (as of 12th July 2024)

Other world governments holding Bitcoin

China, Russia, Ukraine, El Salvador, Finland, Bhutan and many others.

In 2021, El Salvador became the first country to make Bitcoin legal tender and mandated all local businesses to accept payments in BTC. 

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Bitcoin in a spin as it drops below $55000

Bitcoin in a downward spiral

More than $170 billion has been erased from the cryptocurrency market due to concerns over the Mt. Gox bitcoin payout.

Bitcoin’s price plummeted over 6% in 24 hours, reaching $54,237, marking its lowest point since late February 2024.

The total cryptocurrency market lost over $170 billion in market capitalization within the same timeframe, according to CoinGecko.

The Mt. Gox bankruptcy estate’s trustee announced on Friday that repayments in Bitcoin have commenced for certain creditors via specified cryptocurrency exchanges.

What is, or was, Mt. Gox Bitcoin?

The Mt. Gox Bitcoin payout pertains to the reimbursement process for creditors of the defunct Mt. Gox cryptocurrency exchange. Previously the world’s largest Bitcoin exchange, Mt. Gox fell in 2014 due to a significant hack, leading to the loss of about 740,000 Bitcoins.

Following extensive legal battles and postponements, the exchange is poised to start disbursing roughly $9 billion in Bitcoin and Bitcoin cash to its creditors. This payout is noteworthy as it entails a substantial return of bitcoin to users, which may influence the cryptocurrency market dynamics.