Major Developments for the Week
- Bitcoin and crypto market plunge triggered by wider fall in financial markets
- ETH experiences its steepest single-day drop since May 2021
- Disappointing jobs report and stock crash in Japan trigger sell-off
- Crypto fear and greed index shows “fear,” hitting its lowest level in a month
- $75 million in Bitcoin derivatives positions liquidated
- Distribution of 140,000 BTC from Mt. Gox settlement causing market speculation
- Market slumps due to global recession fears and Middle East tensions
- Bitcoin’s ‘Digital Gold’ status is being tested as real gold hits an all-time high
- Senator Lummis proposes bill to boost US financial standing with BTC reserves
- Donald Trump stirs debate by suggesting BTC be used to pay off the $35T national debt
- Ripple invests $10M in tokenized U.S. Treasury bills on the XRP Ledger
- Morgan Stanley advisors now allowed to pitch BTC Spot ETFs to clients
- MicroStrategy stock could gain 30% if BTC reaches $150K by 2025
- Crypto startups poised to secure $12B in VC funds, influenced by Trump’s stance
Bitcoin
Bitcoin Slumps, Ether Slides
Bitcoin and Ethereum have been hit hard amidst broader market fears of a looming U.S. recession, plus global uncertainties including the U.S. presidential election, Middle East tensions, and Japan’s rate hike. Bitcoin’s dominance in the crypto market surged this week to 58% as it experienced a significant sell-off, dropping below $50,000 before correcting slightly.
Ethereum, the second-largest cryptocurrency by market capitalization, saw a steep decline of 30% over the past week, with major altcoins including Solana, BNB, and XRP also suffering substantial losses. Over the last week, we saw the largest three-day decline since August 2023.
Past performance is not an indication of future results
Politics and Bitcoin
Bitcoin continues to be a focal point in political discussions, with various leaders and policymakers weighing in on its potential uses and regulatory status.
Paying off National Debt?
Former President Donald Trump suggested using Bitcoin to pay off the $35 trillion national debt, a notion that has sparked debate among politicians and industry leaders, including Brian Armstrong and Michael Saylor.
Bitcoin Reserve Bill
A Bitcoin Reserve Bill was introduced this week by Wyoming Senator Cynthia Lummis. The draft bill is aimed at bolstering the US’s global financial standing, would allow US states to hold bitcoin and proposes a U.S. Strategic Bitcoin Reserve to be funded partly by revaluing the Federal Reserve’s gold holdings.
Libertarian Economists
Libertarian economists have voiced opposition to Trump’s Bitcoin ‘stockpile’ idea, highlighting concerns about government intervention in the crypto market.
Democratic pro-digital shift?
Pro-crypto Democrats, including those close to Vice President Kamala Harris, are advocating for a shift in the party’s stance on digital assets. California Rep. Ro Khanna and Congressman Wiley Nickel are pushing for new pro-crypto policy frameworks, with Nickel hinting at Harris’s potential openness to these changes, signaling a break from President Biden’s approach.
Institutional Adoption
Institutional interest in Bitcoin continues to grow, with major financial institutions making moves to integrate Bitcoin into their offerings.
Advisors at investment bank Morgan Stanley are now permitted to pitch Bitcoin ETFs to investors. This marks a significant step as it is the first time a major Wall Street bank has taken such an initiative. Wealth managers are embracing Bitcoin ETFs from Blackrock and Fidelity, reflecting increasing institutional confidence in the crypto asset.
eToro’s @BitcoinWorldWide Smart Portfolio offers investors exposure to a diversified range of assets within the Bitcoin ecosystem, aligning with the increased institutional trust and growth trajectory of Bitcoin’s market integration.
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