Bitcoin

Here’s What’s Next This Week

Published

4 months ago

September 23, 2024

Coin2049 Newsletter

As the last week of September commences, financial markets look out for multiple US economic events. However, a handful of them will influence the portfolio and investment strategies of crypto investors, either directly or indirectly.

Bitcoin (BTC) is off to a good start this week, holding well above the $63,000 threshold in the early hours of the Asian session.

Manufacturing and Services PMI

The business survey committees will release data about the purchasing managers’ index (PMI) for manufacturing and services on Monday. The report will shed light on the health of these sectors.

With a previous index of 55.7 and a median forecast of 55.4, a higher PMI above 50 would suggest expansion in the manufacturing and services sectors. This could be positive for risk assets like Bitcoin, especially if the report signals economic growth.

Consumer Confidence and Consumer Sentiment

The consumer confidence report, set to release on Tuesday, September 24, will be followed closely by the consumer sentiment report on Friday. These two surveys, though from different sources, gauge how optimistic or pessimistic consumers feel about the economy’s future.

Both reports reflect consumer attitudes toward their financial outlook and their perception of business conditions and the job market for the next six months. Essentially, they offer a snapshot of how people feel about the economy today and in the near future.

As inflation eases in the US, optimism among consumers is growing. This positive shift is largely due to expectations that inflation will continue to decline through the end of the year, making it easier for households to manage their finances.

If these reports show increased confidence and sentiment, it could suggest a greater willingness among consumers to spend. This improved outlook could also have a ripple effect, potentially benefiting speculative assets like Bitcoin. A more confident consumer base typically means greater risk tolerance, which bodes well for investments perceived as high risk but high reward.

Q2 GDP

The second-quarter Gross Domestic Product (GDP) report, set for release on Thursday, is one of the week’s key economic indicators. This will be the second revision following July’s initial report, which showed a 2.8% increase quarter-over-quarter. That figure significantly surpassed the prior quarter’s 1.4% growth.

The rise in domestic spending has been the main driver behind GDP growth. Increased consumer spending often boosts the economy and inflation while strengthening the US dollar. Conversely, a slowdown in spending could reduce these effects.

A strong GDP report could bolster US citizens’ confidence in the economy’s stability. This positive sentiment may also benefit Bitcoin’s price, as many investors view it as an alternative investment or hedge. Additionally, robust economic data could reinforce the Federal Reserve’s more measured approach to monetary policy. Crypto investors are particularly attuned to Fed policies, as they directly influence market liquidity and conditions.

Fed Speaks: Jerome Powell and Michelle Bowman

Federal Reserve Chair Jerome Powell is scheduled to deliver his opening remarks on Thursday, with markets eagerly awaiting his commentary following recent inflation data and the Federal Open Market Committee’s 50 basis-point interest rate cut. Powell’s statements could have a significant impact on market sentiment.

In addition to Powell’s address, several other Fed officials will speak throughout the week. Crypto investors are expected to closely monitor these comments between Monday and Friday, especially following last week’s unexpected rate cut. Of particular interest is Fed Governor Michelle Bowman, who is slated to speak on both Tuesday and Thursday.

“The committee’s larger policy action could be interpreted as a premature declaration of victory on our price stability mandate. I believe that moving at a measured pace toward a more neutral policy stance will ensure further progress in bringing inflation down to our 2% target,” Bowman said in a statement on Friday.

Bowman has become a focal point due to her dissenting stance on the recent policy decision, marking the first Fed governor to hold a variant view since 2005. Given her unique position, Bowman’s upcoming remarks will be closely watched, as investors seek clarity on her concerns about the speed of rate reductions.

Core PCE Inflation

The Personal Consumption Expenditures (PCE) Price Index, due on Friday, will be a key economic indicator to watch this week. The core PCE, which excludes volatile categories like food and energy, is one of the critical data points the Federal Reserve uses to assess inflation trends and guide future monetary policy decisions.

Analysts predict a 0.2% month-over-month rise in core PCE and a 2.7% year-on-year increase. Meanwhile, headline inflation is expected to slow to 2.3%.

If PCE inflation comes in lower than expected for August, it could boost the likelihood of additional interest rate cuts, a development that would be favorable for Bitcoin. Lower rates tend to encourage borrowing, leading to increased liquidity in the financial markets.

BTC Price Performance, Source: BeInCrypto

For Bitcoin, an environment of lower rates and more liquidity is typically positive, as investors often turn to riskier assets during such periods. BeInCrypto data shows Bitcoin is trading for $63,882 at the time of writing, up by 1.51% since the Monday session started.

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Bitcoin

US Bitcoin Revolution Begins, Senator Lummis Says

Published

52 minutes ago

January 22, 2025

Coin2049 Newsletter

Senator Cynthia Lummis has laid the groundwork for the upcoming development of Bitcoin in the United States. As an avid supporter of cryptocurrency, Lummis has worked very hard for years to integrate digital assets into the financial system of the country, and every statement seems to be underlining what has been done so far in terms of crypto regulation. Under her leadership, Bitcoin is on the verge of being recognized as a key component of the national economy.

Lummis’ Vision For Bitcoin

Lummis is however looking beyond investment in Bitcoin and seeing it as a key ingredient in the financial future of the US. Ongoing efforts span legislation that would foster a nurturing environment for crypto technologies to grow.

Taking a proactive posture, Lummis has indicated that she believes, in the future, Bitcoin could quite possibly provide an alternative means to decentralized financial systems for the unbanked population.

So great to meet with David Bailey. The future for Bitcoin and digital assets in America has never been brighter. pic.twitter.com/m2apTVpFVO

— Senator Cynthia Lummis (@SenLummis) January 21, 2025

Changing Regulatory Landscape

Certainly, one of the most pertinent things she said is that she would work towards having a crypto regulation that seeks a balance between innovation and transparent oversight. It should lessen the barriers for institutions and encourage greater integration into the mainstream financial services ecosystem.

This could open more doors for Bitcoin adoption into both sectors-public and private-in light of the recent developments with regard to regulatory measures.

BTC is now trading at $104,896. Chart: TradingView

Institutional Interest Grows

The increase in interest from institutional participants in Bitcoin and other currencies is also noted. Crypto platforms like CryptoCom have invested heavily in rolling out services targeting institutional investors because they simply acknowledge the need for Bitcoin in the wider financial ecosystem.

Lummis, also known as the “Bitcoin Senator,” has declared 2025 to be a critical year for Bitcoin and cryptocurrency. She anticipates that a number of proposed policies and critical government positions will coalesce and precipitate change.

Most Pro-Crypto Admin?

“This will be the most pro-digital asset administration ever,” Lummis recently wrote on X, with David Sacks serving as Crypto Czar. “I am eager to collaborate with [Sacks] to ensure the successful passage of comprehensive digital asset legislation and my strategic bitcoin reserve.”

Proposed Bitcoin Reserve bill. Source: US Congress

Lummis’ enthusiasm is the result of a recent reorganization of key government officials, which includes the appointment of a new SEC head, prior to Donald Trump’s reelection.

The “Bitcoin Act,” also known as the “Boosting Innovation, Technology, and Competitiveness Through Optimized Investment Nationwide Act,” is integral to the Senator’s vision.

She characterized the legislation as “a network of secure storage vaults, purchase program, and other programs to ensure the transparent management of Bitcoin holdings of the federal government.” The legislation proposes the establishment of a Strategic Bitcoin Reserve.

Featured image from Inc. Magazine, chart from TradingView

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Bitcoin

Roger Ver Supporters Call for Clemency after Ulbricht’s Pardon

Published

8 hours ago

January 22, 2025

Coin2049 Newsletter

Elon Musk, who leads President Donald Trump’s Department of Government Efficiency (D.O.G.E), has committed to exploring the pardon of ‘Bitcoin Jesus’ Roger Ver.

It comes after US President Trump recently granted Ross Ulbricht, the founder of the Silk Road, clemency.

Elon Musk to “Inquire” on Roger Ver’s Pardon

Ross Ulbricht’s presidential pardon has ignited a spirited online campaign for the pardon of Roger Ver, another high-profile figure in the crypto arena. As BeInCrypto reported, Ulbricht’s full and unconditional pardon on Tuesday was widely celebrated. Trump called his previous sentence of two life terms “ridiculous.”

Amid the celebratory discussions, however, attention quickly shifted to Bitcoin Jesus. Ray Youssef, an executive at the crypto platform Noonesapp, was among the first to call for Ver’s release.

“Ross is free. A full unconditional pardon has been signed. Thank God. Don’t forget Roger Ver and all the builders who have been through hell,” Youssef said.

Roger Ver was a vocal proponent of Bitcoin Cash and an early adopter of cryptocurrency. He faced legal troubles over tax evasion allegations. Nine months ago, US authorities accused Ver of owing $48 million in taxes, allegedly stemming from his expatriation process.

Ver challenged these charges two months ago, asserting that he relied on expert advice to ensure compliance with the law. His defense also cited constitutional violations, including claims that privileged communications with his legal team were subpoenaed. Critics have argued that this represents overreach and a troubling precedent for attorney-client privilege.

“Please look into a pardon for Roger Ver. That privileged communications with his lawyers were subpoenaed is a terrible precedent for privacy and the ability to defend oneself,” said Naomi Brockwell, founder of Ludlow Institute.

They also say potentially exculpatory evidence was withheld during grand jury proceedings. Meanwhile. Angela McArdle, chair of the Libertarian National Committee, also expressed her support for Ver’s release. Following these calls, Elon Musk said he would inquire about it.

“Will inquire,” Musk tweeted.

Ver’s supporters argue that a pardon would correct a perceived injustice and reinforce the principles of privacy and due process. The parallels with Ulbricht’s case highlight the dangers of excessive sentencing and systemic government overreach. Taken together, these have strengthened the calls for Ver’s pardon.

Elon Musk’s acknowledgment of the issue has brought renewed attention to the case, potentially amplifying the push for clemency. Many hope that his platform, D.O.G.E, and influence will pressure leaders to address what they see as an unjust precedent. This is amidst a broader campaign for freedoms essential to innovation and prosperity in the cryptocurrency space.

“Roger Ver deserves a pardon to liberate him from the malicious prosecution he still faces–lawfare that threatens to take his freedom for 109 years for an exotic crime he *clearly* did not commit. Pardoning Roger is the strongest signal the President could send that Biden’s war on crypto is over. Please, President Trump, Free Roger Ver,” Bret Weinstein lamented.

Meanwhile, others see Bitcoin Jesus’ case as emblematic of the tension between individual liberties and state power.

“Also (preemptively) Roman Storm while you’re at it please Elon Musk. Publishing open-source privacy tools is an act of free speech — not an act in furtherance of a conspiracy. Whatever crimes committed with the software — developers should not be held vicariously liable for them,” another user added.

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Bitcoin

Brian Armstrong’s Bold Bitcoin Prediction: Multi-Millions Ahead

Published

9 hours ago

January 22, 2025

Coin2049 Newsletter

Coinbase CEO Brian Armstrong has expressed the belief that Bitcoin could eventually reach a price in the multi-million dollar range. This comes as BTC peaked at a new all-time high just hours before Donald Trump returned to the Oval Office for a second term.

Armstrong attributed Bitcoin’s impressive growth to increasing institutional interest and rising national-level adoption.

Coinbase CEO’s $1 million Bitcoin vision

Speaking on CNBC’s Squawk Box, Armstrong described Trump’s presidency as the “dawn of a new day” for cryptocurrency.

Although the first round of executive orders under Trump’s new term did not directly mention crypto, the CEO remained optimistic about Bitcoin’s long-term potential.

“I think over time we’ll see Bitcoin get into the multiple millions price range,” Armstrong predicted.

He attributed this confidence to the growing demand from institutional players. For instance, on January 21, MicroStrategy purchased 11,000 BTC worth $1.1 billion in Bitcoin. This acquisition increased the company’s total reserves to a staggering 461,000 BTC.

Armstrong also pointed to Bitcoin ETFs as a significant factor contributing to the asset’s growth. Approved in January 2024, these ETFs have attracted substantial inflows. According to data from Farside Investors, Bitcoin ETFs have seen cumulative net inflows of $38.9 billion so far.

Additionally, the ETFs recorded four consecutive days of inflows, with the daily net inflow reaching $802.6 million as of January 21.

US Bitcoin Strategic Bitcoin Reserve: A Possibility?

Armstrong explained that Trump’s campaign promise to establish a strategic Bitcoin reserve could further accelerate the adoption of cryptocurrency on a national scale. It could also act as a catalyst for other G20 nations, which have already shown interest, to follow suit.

“Bitcoin has a long way to go. It’s going to become the new gold standard, and crypto is much bigger than that too,” noted the Coinbase CEO.

Notably, Trump has already fulfilled one of his initial promises by pardoning Silk Road founder Ross Ulbricht, effectively ending his life sentence. This move has sparked renewed hope that the President may deliver on other promises, including creating a strategic Bitcoin reserve.

“If Ross Ulbricht got the pardon, we are definitely getting the Strategic Bitcoin Reserve,” CEO of Professional Capital Management, Anthony Pompliano, said in an X post.

Prediction platform Polymarket corroborated this sentiment, showing a 37% probability that Trump would create a Bitcoin reserve within his first 100 days in office. This was a noticeable recovery from the previous day’s low of 29%.

As these developments unfold, Bitcoin continues to soar. At the time of writing, the leading cryptocurrency was trading at $105,366. This marked a 3.0% increase over the past 24 hours.

Bitcoin price performance. Source: BeInCrypto

With increasing institutional involvement, rising ETF inflows, and potential national-level initiatives, Armstrong’s multi-million-dollar Bitcoin prediction may not be far-fetched.

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