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The Race Is On To Frontrun The U.S. Government

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With the 2024 election all but final, it’s clear Donald Trump, the soon-to-be 47th President of the United States, will be the most pro-Bitcoin leader in U.S. history

The big question remains, however: How effective will he be in operationalizing his strategy?

At Bitcoin 2024, Trump – as well as Robert F. Kennedy Jr. and Republican Senator Cynthia Lummis – made clear that they want the United States government to buy Bitcoin. All would seem to be in a better position to enact this following the election, as the Republican Party increased its representation in government considerably.

Yet, as for how quickly the U.S. could become active in the market, that’s more murky. Since announcing the bill, Bitcoin has surged from $60,000 to a high of $86,000, and with the U.S. government soon to be buying, there’s even more incentive for the price to escalate.

Herein lies the problem: The United States has essentially telegraphed to the world that it intends to buy an asset that’s in scarce supply, without the concrete ability to do so.

Even with a majority in the House of Representatives and Senate, passing the Strategic Bitcoin Reserve Legislation 2024 will still require an act of Congress, and the agreement of lawmakers. It would seem foolish to expect this won’t be complex or time-consuming.

For example, the bill proposes revaluing the Federal Reserve’s gold holdings, as well as integrating Bitcoin into government financial systems. Questions will likely abound, as will operational challenges. Let’s remember it took all of three years for SEC Staff Bulletins to be adjusted just to value Michael Saylor’s public markets Bitcoin buying spree correctly.

This is the nature of government — slow and bureaucratic. Even with Trump, RFK, and other Bitcoin backers in positions of power, the chances that the U.S. government begins to acquire Bitcoin on January 20, 2025 seem infinitesimal. This is not saying that it won’t happen at all, just that it won’t be timely.

This is even to omit that there could be a prioritization challenge. Maybe the crypto lobby wants to move quickly on the long delayed market infrastructure bill. If so, Congress could become more consumed with the guardrails for exchanges, and redefining securities laws than the question of the strategic reserve. After all, they helped bankroll Trump’s win.

How much could Bitcoin rise in the meantime? With the bull market in full force, I’d argue that institutions and governments have every reason to become active in the market. There are many regimes around the world where the executive branch has enough power to begin accumulating Bitcoin today. They’d be foolish not to frontrun the U.S. government.

El Salvador started this process in 2021, and it has amassed over 5,900 Bitcoin. Yet, it faced 2-3 years of market headwinds, as traders countered its entries. Lest we forget El Salvador bought hundreds of Bitcoin at $60,000, a move that for years was fuel for its enemies.

Trump may yet do his part to boost Bitcoin. Yet, in telegraphing his intentions, he’s almost certainly created conditions that can be exploited by savvy traders.

Time will tell them if, among them, we’ll see other nation states.





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Institutional Investors Go All In on Crypto as 57% Plan to Boost Allocations as Bull Run Heats Up, Sygnum Survey Reveals

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“This report tells the story of progress and calculated risk, the use of a diverse set of strategies to leverage opportunities and most of all, the continued belief in the market’s long-term potential to reshape traditional financial markets” Lucas Schweiger, Sygnum Digital Asset Research Manager and report author, said in the press release shared with CoinDesk.



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BUIDL Fund Goes Multi-Chain Across These 5 Blockchainsc

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Este artículo también está disponible en español.

Crypto ETF issuer and asset manager BlackRock announced on Wednesday the expansion of its USD Institutional Digital Liquidity Fund (BUIDL) to include five new blockchain ecosystems: Aptos, Arbitrum, Avalanche, Optimism, and Polygon. 

Initially launched on the Ethereum network in March 2024, BUIDL rapidly gained traction among investors, becoming the largest tokenized fund globally regarding assets under management (AUM) within just 40 days.

BNY Mellon To Custody BUIDL

The expansion will allow BUIDL to interact with more blockchain-based financial products and infrastructures. BlackRock aims to enhance accessibility for investors, decentralized autonomous organizations (DAOs), and digital asset firms, enabling them to leverage BUIDL within the ecosystems of their choice.

Carlos Domingo, CEO and co-founder of Securitize, the firm responsible for tokenizing BUIDL, emphasized the importance of this multi-chain approach in Wednesday’s press release by saying: 

Real-world asset tokenization is scaling, and we’re excited to have these blockchains added to increase the potential of the BUIDL ecosystem. With these new chains we’ll start to see more investors looking to leverage the underlying technology to increase efficiencies on all the things that until now have been hard to do.

With the addition of these blockchains, BlackRock aims to provide increased options and access for investors, allowing developers to build applications that integrate seamlessly with the BUIDL fund.

BNY Mellon, which recently received a Bitcoin and crypto custody license for institutional services, will play a key role in this initiative as the fund administrator and custodian for BUIDL. 

BlackRock Bitcoin ETF Achieves Unprecedented Growth

On the crypto ETF front, BlackRock’s Bitcoin ETF, IBIT, has reached a remarkable milestone, surpassing the $40 billion mark in assets under management (AUM) just two weeks after hitting $30 billion. 

This achievement comes in a record 211 days, shattering the previous record of 1,253 days held by the iShares Core MSCI Emerging Markets ETF (IEMG). 

IBIT is now positioned in the top 1% of all ETFs by assets and at just 10 months old, it has outperformed all 2,800 ETFs launched in the past decade, according to ETF expert Eric Balchunas.

Balchunas further highlighted that Bitcoin ETFs collectively have crossed the $90 billion asset threshold, following a significant $6 billion surge in the past few days. 

This increase comprises $1 billion in new inflows and $5 billion in market appreciation. The growing popularity of Bitcoin ETFs indicates that they are now 72% of the way toward surpassing gold ETFs in total assets.

The rise in Bitcoin ETF assets has coincided with a surge in investor confidence, particularly following Donald Trump’s recent victory over Kamala Harris in the presidential elections. 

This political shift has positively influenced market sentiment, contributing to a broader uptick in cryptocurrency prices. Bitcoin, in particular, has experienced a substantial rally, climbing over 24% to reach a record high of $93,000 in the past week alone.

BlackRock
The 1D chart shows BTC’s surge to new all-time highs. Source: BTCUSDT on TradingView.com

Featured image from DALL-E, chart from TradingView.com 



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Bitcoin May Hit $100,000 Faster Than Expected

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It’s been just over seven days since Trump was re-elected as president of the United States, and bitcoin is up over $18,800 (25.3%) at the time of writing. And it’s currently steamrolling its way towards $100,000.

I cannot lie, this is all happening way faster than even I expected.

$100,000 has, for the last four years, been the magic number Bitcoiners have been laser-focused hitting. It felt like there was consensus among Bitcoiners during the 2021 bull run that we were guaranteed to hit this target. But alas, the 2021 bull run underperformed most people’s expectations, with bitcoin’s price only reaching a high of $69,000 (which in retrospect, was a great run considering the low of the previous bear market was ~$3,000), $100,000 bitcoin was put on hold. But now, we’re almost there.

I feel like the price of BTC loves to do the opposite of what everything thinks it will do. Just when everyone thinks bitcoin is going to rip forever, bitcoin’s price falls or stagnates and vice versa (which is why it might not be so safe to assume we’re going straight to $100,000 from here).

Even I’m guilty of this, as I’ve been telling myself for a long time that the battle for $100k is going to be extremely tough with the amount of sell pressure I was predicting there to be. I think $100k is a number at which traders, ETF buyers, and OG whales may take some profit and that it would be an uphill battle to get there. And it still very may well be, considering we are only at $93,000 currently. But since Trump won the election, there has been practically no sell pressure, and we’re slicing through new all time highs like a warm knife through butter.

Bitcoin is now up over $5,500 (6.22%) today alone. If Bitcoin continues this momentum, we could see $100,000 BTC literally any day now — including even today. Nothing is off the table. Throw all your models out the window, they’re all being broken by the buying pressure from these ETFs and those trying to front-run the U.S. government’s implementing a Strategic Bitcoin Reserve.

Bitcoin is on its path to taking on gold as a legit reserve asset. $100k is the next big milestone for bitcoin to hit along this journey, and it may just come faster than expected.

This article is a Take. Opinions expressed are entirely the author’s and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.



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