However, Bitcoin also has internal factors to counterbalance the negative impact of the macro.

Global Liquidity Plunges Over the Past Two Months

According to The Kobeissi Letter, Bitcoin’s price has historically shown a 10-week lagged correlation with Global Money Supply (Global M2). Over the past two months, Global M2 has fallen by $4.1 trillion, signaling potential further declines in Bitcoin prices if the trend continues.

Global M2 is a key economic metric that measures the total supply of money in the global economy, including cash, demand deposits (M1), term deposits, and other liquid assets. Fluctuations in Global M2 often impact both stock and cryptocurrency markets.

“As global money supply hit a new record of $108.5 trillion in October, Bitcoin prices reached an all-time high of $108,000. Over the last 2 months, however, money supply has dropped by $4.1 trillion, to $104.4 trillion, the lowest since August. If the relationship still holds, this suggests that Bitcoin prices could fall as much as $20,000 over the next few weeks.” – The Kobeissi Letter predicted.

A month ago, Joe Consorti, Head of Growth at Bitcoin custody firm Theya, warned of a potential 20%-25% Bitcoin correction based on similar indicators. That forecast appears to be materializing.

André Dragosch, Head of Research at Bitwise, shares a similar outlook. He anticipates Bitcoin will remain under pressure due to tightening liquidity in the United States. However, he highlights an internal Bitcoin factor that could counterbalance this liquidity squeeze: Bitcoin’s growing illiquid supply.

A higher illiquid supply indicates increased scarcity of Bitcoin, potentially supporting its price under supply-demand dynamics.

“Bitcoin is currently balancing the prospects of a) increasing macro headwinds stemming from the decline in US and global liquidity and b) ongoing on-chain tailwinds stemming from the strong BTC supply deficit. Eventually bullish on-chain factors will likely trump bearish macro factors but this will likely create some volatility in early 2025 (and possibly some attractive buying opportunities).” – André Dragosch commented.

At press time, Bitcoin is trading around $94,000, with BeInCrypto data showing it has dropped nearly 6% over the weekend.

The post Experts Predict Bitcoin Could Drop $20,000 Amid Global Money Supply Decline appeared first on BeInCrypto.

These whispers gained momentum following a vague tweet from Binance founder and former CEO Changpeng Zhao.

Rumors of UAE’s Bitcoin Wealth Spotlight Nation-State Accumulation Trends

On December 22, Zhao cited an unconfirmed report that alluded that the UAE has stockpiled approximately $40 billion in the top crypto.

If true, crypto analyst Trader T stated that this would mean that the Middle Eastern country holds 411,978 BTC and potentially ranks among the top three Bitcoin holders globally and the foremost national government holder.

This revelation sparked intense discussions and varying degrees of skepticism within the crypto community. Despite the buzz, this information remains unverified and rests solely on speculative sources.

“People are stating the UAE $40b Bitcoin purchase as a FACT. From all the publicly available information, this has not been confirmed. It is just a rumour started on 𝕏 and now it has been taken as fact,” Bitcoin Archive wrote.

The notion of nation-states, particularly wealthy Middle Eastern countries, stockpiling Bitcoin isn’t new. Last month, some rumors suggested that regional powers like Saudi Arabia and Qatar might also be increasing their Bitcoin reserves as the digital asset’s value surged past the $90,000 mark.

However, these rumors remain unconfirmed as of press time. Nevertheless, market observers said these recurring stories underscore a growing trend of countries seriously considering and possibly acting on Bitcoin accumulation strategies.

Indeed, the market has seen tangible examples of this trend, notably in El Salvador. The country recently upped its Bitcoin investment, purchasing an additional 11 units of the flagship digital cryptocurrency. According to official data, this brings its total holdings to 5,993.77 BTC, valued at approximately $575 million.

This move came despite prior agreements with the International Monetary Fund (IMF) to reverse such policies. However, El Salvador authorities have made further progress towards increasing their BTC stockpile. For context, Max Keiser, a senior advisor to El Salvador’s President, revealed plans further to increase the nation’s Bitcoin reserves by 20,000 BTC.

“El Salvador is moving to a peaceful, Bitcoin standard. The interim goal in [El Salvador] is to acquire another 20,000 BTC,” Keiser stated.

The post UAE Joins Bitcoin Accumulation Buzz With Unverified $40 Billion Claim appeared first on BeInCrypto.

This initiative aligns with Senator Cynthia Lummis’s Bitcoin Act, which advocates for the US to amass 1 million bitcoins within the next five years. The lawmaker argues that such a reserve could place future generations on a more stable financial footing, free from debts they did not accrue or benefit from.

How a Bitcoin Reserve Could Transform US Debt Management by 2050

VanEck’s analysis supports this strategy, predicting that such an investment could cut national liabilities by an estimated $42 trillion by 2049. This projection assumes a consistent debt growth rate of 5% and an annual bitcoin appreciation rate of 25%.

In this scenario, Bitcoin’s value would skyrocket to over $42 million, making it a substantial player in the global financial arena by 2049.

“Assuming today’s $900 trillion of total global financial assets compound at 7.0% from 2025 – 2049, Bitcoin would represent 18% of global financial assets in this scenario,” the firm added.

Mathew Sigel, VanEck’s head of research, emphasized Bitcoin’s potential role in reshaping the global financial landscape. He suggested that Bitcoin might become the leading settlement currency in global trade – presenting an alternative to the US dollar – especially for countries seeking to sidestep US sanctions.

“It’s very possible bitcoin will be widely used as a settlement currency for global trade by countries who wanted to avoid the parabolic increase in USD sanctions that have been imposed,” Sigel wrote.

To kickstart this ambitious project, VanEck recommends several preliminary measures, including stopping the sale of Bitcoin from US asset forfeiture reserves.

Furthermore, they suggest that adjustments could be made under President Donald Trump’s incoming administration, such as revaluing gold certificates to their current market prices and using the Exchange Stabilization Fund to make initial Bitcoin purchases.

Indeed, these steps could help establish the reserve quickly without waiting for extensive legislative approval.

However, the proposal has met with some skepticism. Venture Capitalist Nic Carter has questioned whether a Bitcoin reserve would genuinely bolster the US dollar. Meanwhile, Peter Schiff proposes an alternative of the creation of a new digital currency called the USAcoin.

“The US could save a lot of money by creating USAcoin. Just like Bitcoin, the supply can be capped at 21 million, but with an upgraded blockchain to make USAcoin actually viable for use in payments,” Schiff suggested.

The post VanEck Argues That a Strategic Bitcoin Reserve Could Slash US Debt 36% by 2050 appeared first on BeInCrypto.

This venture aligns with the impressive market trajectory observed in spot Bitcoin ETFs since their January debut.

Nexo and 7RCC Present an ESG Twist on Bitcoin Investment

On December 20, Nate Geraci, president of the ETF Store, announced that Nexo and 7RCC Global had submitted an S-1 amendment to the US Securities and Exchange Commission (SEC) for a new fund — the Nexo 7RCC Spot Bitcoin and Carbon Credit Futures ETF.

Geraci revealed that this ETF would diversify its portfolio by allocating 80% to Bitcoin and the remaining 20% to Carbon Credit Futures. He highlighted that the ETF would focus on emissions allowances from established cap-and-trade systems, including those in the European Union, California, and under the Regional Greenhouse Gas Initiative.

Carbon credit futures are financial instruments traded based on the projected value of carbon credits. They provide a mechanism to handle regulatory uncertainties while fostering environmentally sustainable investment practices. Geraci described the ETF as an “ESG version of a spot BTC ETF” and expressed optimism about its regulatory approval.

“Expect this to launch soon. Basically an ‘ESG’ version of spot BTC ETF,” Geraci said.

This initiative is not just a significant advancement in embedding ESG principles within cryptocurrency investment but also sets a new benchmark for financial instruments designed to marry profitability with environmental and social responsibility.

If approved, this ETF will enter a robust market currently led by heavyweights like BlackRock and Fidelity. Spot Bitcoin ETFs have already attracted about $36 billion in net inflows since the start of the year, underscoring the dynamic investment landscape.

Beyond the ETF, Nexo’s collaboration with 7RCC Global also promises broader societal benefits, aligning with the World Economic Forum’s Safeguarding the Planet initiative. Indeed, this partnership underscores a mutual commitment to fostering progress that respects and nurtures the environment for future generations.

Kalin Metodiev, CFA, Co-founder and Managing Partner at Nexo, emphasized the partnership’s dedication to lasting impact.

“Unlike 20 years ago, today’s generation is not just about making money; it’s about making a difference. This strategic alliance highlights our commitment to sustainable solutions that will benefit future generations,” Metodiev stated.

The post Nexo 7RCC Files for World’s First Bitcoin and Carbon Credit Futures ETF appeared first on BeInCrypto.

This move comes as his company expanded its Board of Directors from six to nine members, incorporating prominent crypto advocates to strengthen its strategic focus on digital assets.

Saylor Advocates for Bitcoin Reserve

On December 20, Saylor explained that his vision revolves around implementing a Strategic Bitcoin Reserve (SBR) to address economic challenges, enhance the dollar’s dominance, and create unprecedented growth opportunities in the digital asset sector.

“A strategic digital asset policy can strengthen the US dollar, neutralize the national debt, and position America as the global leader in the 21st-century digital economy — empowering millions of businesses, driving growth, and creating trillions in value,” Saylor wrote on X.

Saylor’s proposal outlines how a robust digital asset policy could create a capital markets renaissance, unlocking trillions in value. He envisions a $10 trillion digital currency market driving demand for US Treasuries while fostering growth in digital assets.

He also believes that expanding this market could increase the digital economy’s valuation from $1 trillion to $590 trillion, with the United States leading the charge.

“Establishing a Bitcoin reserve [is] capable of creating $16–81 trillion in wealth for the US Treasury [and] providing a pathway to offset national debt,” Saylor said.

Despite these bold claims, critics like venture capitalist Nic Carter remain skeptical. Carter argues that the SBR concept lacks clarity and could destabilize markets rather than strengthen the dollar.

He points to Bitcoin’s volatility, referencing its recent price dip from over $108,000 to $92,000, as evidence that it may not be a reliable reserve asset. Additionally, Carter believes such a move could undermine the dollar’s global position rather than enhance it.

“I don’t support a Strategic Bitcoin Reserve, and neither should you,” Carter stated.

New MicroStrategy Board Members Bring Crypto Expertise

According to a December 20 SEC filing, the board of Bitcoin-focused company has elected new board members. The new additions include Brian Brooks, former Binance US CEO and a prominent figure in crypto regulation; Jane Dietze, Chief Investment Officer at Brown University; and Gregg Winiarski, Chief Legal Officer at Fanatics Holdings.

These new board members bring diverse expertise across finance, technology, and emerging markets, aligning with MicroStrategy’s broader strategic objectives. Brooks, in particular, is renowned for his regulatory and crypto expertise. He has held leadership roles at top crypto firms, including Coinbase and BitFury Group, and has also served as the Acting Comptroller of the Currency.

Meanwhile, Dietze has also served on the crypto asset management firm Galaxy Digital board, while Winiarski has experience with a privately held global digital sports platform.

MicroStrategy is the largest publicly traded corporate holder of Bitcoin. According to Bitcoin Treasuries data, the company currently holds 439,000 Bitcoin valued at over $43 billion.

The post Michael Saylor Details Bitcoin Strategy to Drive US Digital Economy appeared first on BeInCrypto.

It comes as markets continue to reel from the comments made by Federal Reserve chair Jerome Powell on Wednesday.

Bitcoin ETF Outflows Set New Peak at $672 Million

According to data on Farside investors, Bitcoin ETF outflows reached a new peak on Thursday at $671.9 million. This beat the previous high of negative flows of $564 million recorded on May 1, 2024.

Based on the data, Fidelity’s FBTC fund led the selling volume on the December 19 trading session with outflows of up to $208.5 million. Notably, this marked the highest level in the fund’s operation since January 11, when these financial instruments first hit the market.

Grayscale’s BTC fund recorded outflows of $188.6 million, marking its worst performance since launch. Ark Invest’s ARKB also contributed more than $108 million to the total outflows in the Thursday trading session. BlackRock’s IBIT fund bucked the trend, alongside Franklin Templeton’s EZBC and Valkyries’ BRRR, recording neither outflows nor inflows.

Farside data also shows a similar outlook in the Ethereum ETF market, breaking an 18-day streak of positive flows as outflows hit $60.5 million. Crypto enthusiast Mark Cullen attributes the turnout to the news that the FED is not allowed to hold BTC, a stance that may threaten prospects of a Bitcoin reserve in the US.

“It seems that the US BTC ETFs are all capitulating after the news that the FED isn’t allowed to hold BTC. So does that mean no strategic Bitcoin reserve fund? Total outflows net -$671.9 million,” Cullen shared.

Indeed, during his press conference on Wednesday, Jerome Powell said the Federal Reserve is not allowed Bitcoin, suggesting that they can only advise and regulate. The Fed chair also hinted at not keeping interest rate cuts going into 2025 as previously expected. This change in rhetoric came after data showed US inflation was not cooling as Federal Reserve officials had hoped.

Against this backdrop, the massive outflows on December 19 likely represent Wall Street investors’ reaction, with only two interest rate cuts expected next year. 

The post Bitcoin ETFs Break 15-Day Inflow Streak as Outflows Set Record High at $672 Million appeared first on BeInCrypto.

With Bitcoin (BTC) options valued at $2.02 billion and Ethereum (ETH) at $598.99 million, traders are bracing for potential volatility.

What Traders Should Watch Amid Over $2.6 Billion Options Expiry

Today’s expiring options mark a slight drop from last week. According to Deribit data, Bitcoin options expiration involves 20,728 contracts, compared to 20,815 contracts last week. Similarly, Ethereum’s expiring options total 174,863 contracts, up from 164,330 contracts the previous week.

For Bitcoin, the expiring options have a maximum pain price of $110,000 and a put-to-call ratio of 0.87. This indicates a generally bullish sentiment despite the asset’s recent pullback.

In comparison, their Ethereum counterparts have a maximum pain price of $3,700 and a put-to-call ratio of 0.48, reflecting a similar market outlook.

The maximum pain point is a crucial metric that often guides market behavior. It represents the price level at which most options expire worthless.

Additionally, the put-to-call ratios below 1 for both Bitcoin and Ethereum suggest optimism in the market, with more traders betting on price increases. Nevertheless, with that volume of options expiring, traders and investors should brace for potential volatility.

“Options expiry can lead to increased volatility as traders adjust their positions. Watch for potential moves in SPX and BTC as they may react to these market dynamics,” one user on X shared.

Could Options Expiry Catalyze Market Recovery?

Of note is that these expiring options come after Bitcoin retracted to $94,235. As of this writing, the pioneer crypto was trading for $97,157, down almost 4% since the Friday session opened.  

With a maximum pain point of $101,000, Bitcoin stands well below its strike price. On the other hand, Ethereum is trading for $3,392, well below its maximum pain price of $3,700. Based on the Max Pain theory, BTC and ETH prices are likely to approach their respective strike prices, hence expected volatility.

This happens because the maximum pain theory in options trading operates on the assumption that option writers are typically large institutions or professional traders. Therefore, they have the resources and market influence to drive the closing price toward the maximum pain point on expiration day.

For Bitcoin, therefore, this means a possible recovery, potentially reclaiming the $100,000 milestone.

“Overnight sessions not looking good. The saving grace could be just tons of options expiring worthless tomorrow,” one user on X quipped.

Meanwhile, it is impossible to ignore that while options expirations often cause short-term price fluctuations, markets usually stabilize soon after as traders adapt to the new price environment. With today’s high-volume expiration, traders and investors can expect a similar outcome, potentially influencing future crypto market trends, especially into the weekend.

The post Over $2.6 Billion Options Expiring Today: What It Means for Bitcoin and Ethereum appeared first on BeInCrypto.

The Hashdex Nasdaq Crypto Index US ETF and the Franklin Templeton Crypto Index ETF received regulatory clearance, with the latter benefiting from an expedited review. 

Combined Bitcoin and Ethereum ETFs Approved after Consecutive Delays

Franklin Templeton’s updated ETF filing, submitted earlier today, secured faster approval due to its alignment with established commodity-based trust standards. 

According to the filing, the SEC approved rule changes proposed by Nasdaq and Cboe BZX to facilitate the listing and trading of these funds.

“Hashdex Crypto Index ETF that just got approved by the SEC. At first it will only include BTC and ETH, but will expand to other assets over time… INCLUDING XRP!” said popular artist Chad Steingraber. 

Hashdex had originally filed for its ETF in June, but the SEC postponed its decision twice, citing regulatory deliberations. Analysts suggest that upcoming leadership changes in Washington may have accelerated the recent approvals.

“Launch likely in January. They’re mkt cap weight so 80/20 btc/eth approx. Notable that Hashdex & Frankie are first. Good for them,” wrote ETF analyst Eric Balchunas.

Meanwhile, the green light for these ETFs coincides with a volatile period in crypto markets. As BeinCrypto reported earlier, over $1 billion in crypto liquidations occurred within the last 24 hours, 

Bitcoin’s price dropped by more than 8% today, falling from $105,000 to below $96,000.

Are Litecoin ETFs Next?

Earlier this week, Bloomberg analysts predicted the authorization of dual Bitcoin and Ethereum ETFs, which immediately became true. According to their projections, the SEC would next approve Litecoin ETFs. 

While there might not be significant demand for LTC among institutional investors, Litecoin is a Bitcoin fork and a potential commodity under US regulations. 

However, uncertainties remain for other popular assets like Solana and XRP ETFs. With Paul Atkins taking over, the SEC could have a more favorable stance toward crypto ETFs. Recent developments in the SEC suggest a shift is already underway. 

Yesterday, the Senate Banking Committee declined to re-nominate Commissioner Caroline Crenshaw. She has been a vocal supporter of SEC Chair Gary Gensler’s anti-crypto agenda. Crenshaw’s term will now conclude in January, leaving a vacancy in the agency’s leadership.

The post SEC Approves Dual Bitcoin and Ethereum ETFs From Hashdex and Franklin Templeton appeared first on BeInCrypto.

Bitcoin dipped below $96,000, with meme coins seeing the highest loss on Thursday. 

Inflation Forecast Triggers Massive Corrections in the Crypto Market

According to Coinglass data, Bitcoin saw over $45 million in liquidation today, while Ethereum saw nearly $30 million. This major correction occurred after the Federal Reserve cut interest rates by 25 basis points on Wednesday.

Usually, an interest rate cut is bullish for crypto, as lower rates signal a softer monetary policy. However, what impacted the market was the Fed’s 2025 projections. Jerome Powell said that the Federal Reserve is predicting higher inflation and only two interest rate cuts next year. 

While this level of liquidation is significant, the impact on the stock market is more severe. Nearly $1.5 trillion was wiped out from the US market. These heavy liquidations are driving concerns for a potential bearish cycle.

“Hey guys, now that the bull market’s officially over I just wanted to extend a wholehearted thank you to everyone. I’ll be deleting all crypto related socials and logging off,” one influencer posted on X (formerly Twitter)

However, the prevailing perspective of most analysts seems to indicate that today’s liquidation is just a short-term flushout.

“Bitcoin Market Sentiment. It’s the same story every time, and it never changes. Markets aren’t designed for the majority to win. Corrections are a natural part of bull markets,” wrote popular analyst ‘Titan of Crypto’. 

Other analysts, like Philakone, emphasized that these liquidations generally happen at the end of a bullish year when the market enters a cool-off period. He also predicted that the bullish sentiment would return after December 17 and sustain until the first week of January.

Meanwhile, some analysts are forecasting an altcoin season. Increasing liquidation for Bitcoin will impact its dominance in the coming months and create more scope for major altcoins like Ethereum and Solana.  

“If you think the altcoin season is over, you need to know this: The total altcoin market cap (excluding BTC & ETH) is sitting at around $1.05 trillion. It’s tapping at the previous altcoin market cap high from November 2021. The last time something similar happened was in Feb 2021, when this altcoin market cap tested the previous high from Jan 2018,” wrote Lark Davis. 

While the Fed’s forecast had a notable impact on the market today, it’s important to understand that Bitcoin is still up by nearly 130% this year. Most importantly, several developments in the crypto industry outweigh these macroeconomic factors. 

Michael Saylor’s MicroStrategy, which owns nearly 2% of Bitcoin’s supply, has made consecutive purchases since November. The firm even bought $3 billion worth of BTC in December, while assets hovered above $100,000. 

Also, other public companies like MARA and Riot Plaforms have pursued similar Bitcoin acquisition strategies this month. There are also potential regulatory shifts to look forward. Global lawmakers across different countries are advocating for a Bitcoin reserve.

So, while the macroeconomic factors have raised momentary bearish signals, the long-term outlook for 2025 still remains bullish.

Shrinking Supply Signal Potential Bitcoin Supply Shock

Another reason why we think Bitcoin will continue to remain bullish is its supply and demand ratio. 

According to data from CryptoQuant, the Bitcoin market is showing signs of a potential supply shock as rising demand meets a shrinking supply of BTC available for sale. Bitcoin demand is rising, with accumulator addresses adding 495,000 Bitcoin monthly. 

Meanwhile, the stablecoin market cap hit $200 billion, signaling fresh liquidity. Optimism around pro-crypto policies and potential US initiatives further fuels demand. 

On the other hand, sell-side liquidity has dropped to 3.397 million Bitcoin, the lowest since 2020, including exchanges, miners, and OTC desks. The inventory ratio, which measures how long current supply can meet demand, has plummeted to 6.6 months from 41 months in October, highlighting the tightening market conditions.

So, this supply shock, along with the macroeconomic factors, could be the key catalyst behind today’s liquidations. 

The post Crypto Market Drops 10% as Over $1 Billion Liaquidated Since Fed’s Rate Cuts appeared first on BeInCrypto.

The sentence, handed down by a London court, is suspended for two years. 

Craig Wright’s Obsessions with Satoshi Nakamoto Lands Him in Prison

The case stemmed from Wright’s $1.1 trillion legal claim over intellectual property rights related to Bitcoin, filed in violation of a previous court ruling.

The Crypto Open Patent Alliance (COPA) brought the case against Wright, arguing that his October lawsuit disregarded a July judgment barring him from pursuing legal action tied to his claim of being Nakamoto. 

Judge Mellor had ruled in March that Wright was not the pseudonymous Bitcoin creator and prohibited him from pursuing related cases in the UK or elsewhere. 

Throughout 2024, Craig Wright faced several legal challenges over his assertions. A UK court dismissed his evidence earlier, deeming his case baseless.

“This sentence of Craig Wrighr is proof that the truth matters and that justice can prevail. Wright has been held accountable, and the CPS investigation into perjury charges against him and Matthews is the next major step. Calvin Ayre’s role in funding and supporting this fraud must also be closely examined,” popular entrepreneur Christen Ager-Hanssen wrote on X (formerly Twitter)

Wright, who attended the sentencing virtually from an undisclosed location in Asia, said he would appeal the verdict. He declined to reveal his exact whereabouts.

As Bitcoin’s popularity surged throughout this year due to its historic rally, interest in Satoshi Nakamoto’s identity has also gained mass popularity. Recently, HBO’s Money Electric documentary stirred controversy by suggesting Canadian cryptographer Peter Todd could be Nakamoto. 

However, Todd denied the allegations and reportedly went into hiding following threats and unwelcome attention.

The mystery deepened in October when Stephen Mollah claimed at a London press conference to be Nakamoto. The event descended into chaos as Mollah failed to provide credible proof, and technical issues further undermined his declaration.

Despite these ongoing speculation and high-profile incidents, the true identity of Bitcoin’s creator remains undiscovered. Time and time again, individuals like Wright, claiming to be the elusive figure, have only gained unwarranted troubles. 

The post Craig Wright Receives a 12-month Jail Sentence Over False Satoshi Claims appeared first on BeInCrypto.

This breakthrough moment, explored by NFTEvening and Storible, among others, reflects Bitcoin’s wealth-creation capabilities compared to traditional investments like stocks.

Report Shows Bitcoin’s Meteoric Wealth Creation

Beyond validating the faith of early adopters, Bitcoin’s climb to $100,000 also created a staggering number of new millionaires and billionaires. In a recent study by NFTEvening and Storible, researchers tracked over 17,000 Bitcoin wallets with balances exceeding $1 million on Dune Analytics.

Specifically, the research focused on wallets that built wealth incrementally, excluding those with initial balances over $1 million or investments exceeding $100,000. This ensured an emphasis on retail investors rather than institutional players. The findings showed:

• 14,211 New BTC Millionaires: Over 14,000 individuals saw their investments balloon to millionaire status as Bitcoin crossed the $100,000 milestone.
  
• 4 New BTC Billionaires: Four fortunate investors joined the billionaire ranks, highlighting Bitcoin’s potential for exponential financial growth.

To contextualize Bitcoin’s performance, the analysts proceeded to compare equivalent investments in top stocks by market capitalization over the same period. The statistics were striking when comparing Bitcoin’s wealth-creation speed with that of blue-chip stocks. Per the report:

• Millionaire Creation: With a $4,000 investment, Bitcoin investors typically take 10.3 years (or 3,775 days) to reach millionaire status. This represents a 250X return on investment (ROI) since 2010. Conversely, the same investment in blue-chip stocks during the same period would grow to just $45,000—barely a fraction of Bitcoin’s potential.
  
• Billionaire Creation: A $30,500 investment in Bitcoin has historically required 12.7 years (or 4,645 days) to achieve billionaire status, yielding a jaw-dropping 32,787x ROI. In stark contrast, a similar investment in stocks would reach just $950,000 in value over the same timeframe.

These findings further highlight the stark contrast between Bitcoin and traditional investment vehicles. Nevertheless, the research did not stop there. It proceeded to compare Bitcoin to market leaders.

Bitcoin Returns Dwarf Apple, Nvidia, and Tesla Since 2010

When pitted against the top 10 largest stocks by market capitalization, Bitcoin’s performance dwarfs even the most successful companies. Specifically:

• 2010-2020 Returns: Bitcoin delivered 20X the returns of Apple, 9X those of Nvidia, and 4X Tesla’s gains.
• 2010-Present Returns: Bitcoin’s ROI surged to 76,378X Apple’s, 6,062X Nvidia’s, and 9,103X Tesla’s returns.

This finding aligns with a recent survey conducted by ReviewExchanges, concerning how US investors responded to Bitcoin’s $100,000 milestone. As BeInCrypto reported, an overwhelming 72% of respondents view cryptocurrency as a major future investment. This cohort cited optimism around Bitcoin ETFs, political shifts, and growing mainstream acceptance.

On the other hand, 83% of investors reported earning less than $10,000. At the same time, a striking 79% of crypto holders admitted to missing out on major gains during this bull run. This highlights the importance of timing in crypto investments, reflecting how late market entries or smaller initial investments cost investors potential gains.

Nevertheless, investors should avoid relying solely on surveys and instead conduct thorough research to make well-informed decisions. Amid growing traction and accelerated mainstream adoption, Bitcoin and crypto appear set to continue reshaping wealth distribution.

At the time of writing, Bitcoin was trading at $102,496. This represents a minor retraction of almost 2% since Thursday’s session opened, as crypto markets reel from the Federal Reserve’s recent interest rate decision.

The post NFTevening Report: Bitcoin Millionaires Rise 22x Faster Than Stock Investors appeared first on BeInCrypto.

Hayes suggests that the best way for the US to achieve economic prosperity is for the Treasury Department to create more dollars by devaluing the price of gold to build a Bitcoin reserve. 

Hayes Suggests Trump to Shift from the Gold Standard

According to Hayes’ latest Substack article, this devaluation would allow the Federal Reserve’s Treasury General Account (TGA) to receive a dollar credit. 

This credit can later be injected into the economy directly. It eliminates the need for diplomatic efforts to persuade other countries to devalue their currencies against the US dollar. The larger the gold devaluation, the bigger the credit will be. 

Currently, the treasury values gold at $42,22/oz. From Hayes’ perspective, this is overvalued. He explains that if incoming Treasury Secretary Scott Bessent would consider a $10,000 to $20,000/oz revaluation, then the TGA’s balance would immediately grow. 

“Quickly and dramatically weakening the dollar is the first step towards Trump and Bessent achieving their economic goals. It is also something they can accomplish overnight without consulting domestic legislators or foreign finance ministry heads. Given that Trump has one year to show progress on some of his goals to help Republicans maintain their hold on the House and Senate, my base case is a $/gold devaluation in the first half of 2025,” Hayes wrote. 

What Would a Bitcoin Reserve Mean for the US Economy?

Arthur Hayes argues that the strategy would inherently increase the price of Bitcoin and other cryptocurrencies if the Treasury decides to use the dollar credits to purchase BTC. 

Given that the US already owns the largest amount of gold than any other nation-state, it could do the same by creating a Bitcoin reserve. This would consequently assert the country’s financial supremacy in terms of ownership over the world’s strongest digital asset. 

Since the industry widely considers Bitcoin to be hard money due to its fixed supply cap, Hayes argues that the strongest government fiat currency would be the one whose central bank owns the largest reserve of BTC. 

In turn, a government that holds a significant amount of Bitcoin would naturally implement policies that favor the growth of the cryptocurrency industry.

“If the US government creates more dollars via a gold devaluation and uses some of those dollars to buy Bitcoin, its fiat price will rise. This will in turn spur competitive sovereign purchases by other nations who have to play catchup with the US. The price of Bitcoin then would rise asymptotically, because why would anyone sell Bitcoin and receive fiat, which the government is actively devaluing?” Hayes explained in his article. 

It’s also important to consider that the US is not the only country considering a strategic Bitcoin Reserve. As BeInCrypto reported earlier, Russian lawmakers are also suggesting the same. 

Japan’s lawmakers also made similar suggestions earlier this month, and Vancouver, Canada, has already approved a Bitcoin Reserve plan for the city council. So, it’s likely that if the US doesn’t make the move soon, its international competitors will. 

Yet, realistically, Hayes doesn’t expect the Treasury to purchase Bitcoin. However, a gold devaluation would create dollars anyway, which can be reinserted into the economy as goods and services or used as financial assets. 

Hayes’ sentiment does align with the market stats, as Bitcoin ETFs currently hold more assets under management than Gold ETFs. These funds have been trading for less than a year. 

How Much Time Does Trump Have?

Hayes showed weariness over crypto investors’ high expectations for how quickly the incoming Trump administration can enact changes that would benefit the crypto market.

He predicted that Trump would need at least a year to address underlying domestic and international issues. 

At the same time, the president-elect will need to show results almost immediately, considering that most legislators will start to campaign for mid-term elections only a year after Trump’s inauguration. 

If patience runs thin and sentiment turns negative quickly, Hayes expects there to be buyer’s remorse among investors.

“The market will instantly wake up to the reality that Trump has at best one year to enact any policy changes on or around January 20th. This realization will lead to a vicious sell-off in crypto and other Trump 2.0 equity trades,” he said.

Because of how little time Trump actually has to create change, Hayes emphasizes that gold devaluation is the most time-efficient way to generate money and stimulate the economy.  

“The people are impatient because they are desperate. Trump is an astute politician and knows his base. To me, that means he must go big early, which is why my money is on a massive dollar vs. gold devaluation early into his first 100 days in office. It is an easy way to make production costs globally competitive in America quickly,” he concluded.

Hayes is not the only one who shares this perspective. Last month, Republican Senator Lummis also proposed that the Fed sell a portion of its gold to buy 1 million BTC and fund a Bitcoin Reserve. 

The post Arthur Hayes Wants Trump to Devalue Gold Price and Build a Bitcoin Reserve appeared first on BeInCrypto.