Author: Defx Intern

Despite the recent market turmoil triggered by President Trump’s tariffs, a new memo from Bitwise Asset Management suggests that these economic headwinds could ultimately propel Bitcoin to new heights. The report outlines two distinct scenarios where Bitcoin emerges as a clear winner, regardless of the outcome of the ongoing trade disputes.

The Bitwise analysis hinges on the concept of the ‘Triffin Dilemma’, which highlights the inherent conflict between a currency’s role as a global reserve and the need for the issuing nation to run persistent trade deficits. With President Trump aiming to restructure America’s trade dynamics, the stage could be set for a significant shift in the global economic landscape.

In the first scenario, if Trump succeeds in weakening the dollar while keeping interest rates low, it could spark a surge in risk appetite among US investors. This environment would likely drive capital flows towards alternative assets like Bitcoin, which offers a non-sovereign, decentralized store of value. Simultaneously, other nations grappling with the fallout of a weaker dollar might resort to fiscal and monetary stimulus, further fueling demand for Bitcoin.

Alternatively, if the trade war persists and leads to a prolonged period of global economic weakness, central banks would almost certainly respond with extensive monetary stimulus. Historically, such liquidity injections have been bullish for Bitcoin, as investors seek out deflationary assets that are insulated from the policies of central banks.

As the trade war narrative continues to unfold, Bitcoin’s unique properties as a borderless, censorship-resistant asset could make it an increasingly attractive option for investors seeking to navigate the turbulent global economic landscape. While short-term volatility may persist, the longer-term implications of the current trade tensions could ultimately serve to solidify Bitcoin’s role as a safe haven asset and a viable alternative to traditional fiat currencies.

Tags: Bitcoin, Trade War, Trump, Tariffs, Global Economy, Safe Haven

Source: https://www.newsbtc.com/news/bitcoin/why-bitcoin-wins-outcome-trump-trade-war/

BlackRock, the world’s largest asset manager with over $10 trillion in assets under management, is planning to launch a Bitcoin exchange-traded product (ETP) in Europe. According to a Bloomberg report, the fund will be based in Switzerland, and BlackRock could begin marketing it as early as this month.

This move marks BlackRock’s first crypto-linked ETP outside of the United States, where its iShares Bitcoin ETF (IBIT) has been a resounding success, amassing nearly $60 billion in assets in just over a year since its inception. The entry of BlackRock into the European crypto ETP market is expected to intensify competition among providers, potentially leading to fee waivers and improved product offerings for investors.

The launch of a BlackRock Bitcoin ETP in Europe could have significant implications for the cryptocurrency market. As a major institutional player, BlackRock’s endorsement of Bitcoin through an ETP offering may boost investor confidence and drive further mainstream adoption of cryptocurrencies. Additionally, the increased competition among ETP providers could lead to lower fees and more accessible investment options for retail and institutional investors alike.

While details regarding the fee structure of BlackRock’s European Bitcoin ETP remain unknown, it will play a crucial role in determining the product’s performance and competitiveness in the market. As the cryptocurrency space continues to evolve and mature, the entry of established financial giants like BlackRock is a testament to the growing legitimacy and acceptance of digital assets in the traditional investment landscape.

Tags: BlackRock, Bitcoin ETP, Europe, Crypto Investment, Institutional Adoption

Source: https://www.coindesk.com/business/2025/02/05/blackrock-plans-to-launch-a-bitcoin-etp-in-europe-bloomberg

XRP, the native token of the Ripple blockchain, has been facing significant bearish pressure in the market. The cryptocurrency currently trades between $2.43 and $2.46, down 6.4% over the past 24 hours. With a market capitalization of $142 billion and a global trade volume of $7.93 billion, XRP has been struggling to maintain its position above critical support levels.

The 1-hour chart for XRP reveals the challenges the token faces in the current market conditions. Bears have taken control, pushing the price down and testing key support levels. If XRP fails to hold above these crucial levels, it could potentially lead to further downside in the near term.

The bearish sentiment surrounding XRP can be attributed to various factors, including overall market conditions and specific developments related to Ripple. As the crypto market continues to experience volatility, investors are closely monitoring XRP’s performance and its ability to withstand the selling pressure.

For XRP to regain bullish momentum, it would need to break above key resistance levels and see a significant influx of buying volume. However, in the current market environment, this may prove to be a challenging task. Traders and investors should exercise caution and closely monitor technical indicators and market sentiment before making any decisions.

The struggles faced by XRP highlight the importance of risk management and the need for a well-diversified portfolio in the crypto space. As always, it is crucial to conduct thorough research and consider individual risk tolerance before investing in any cryptocurrency.

Tags: XRP price, Ripple, bearish market, crypto market analysis, technical analysis

Source: https://news.bitcoin.com/xrp-price-analysis-bears-take-control-as-xrp-struggles-to-stay-above-critical-support/

The Federal Deposit Insurance Corporation (FDIC) has released a trove of documents related to ‘Operation Chokepoint 2.0’, which crypto advocates claim shows further proof that the agency had targeted the crypto industry. The documents provide insights into the FDIC’s actions and their potential impact on the cryptocurrency market.

The release of these documents has raised concerns among crypto industry participants, who have long suspected that regulatory bodies like the FDIC have been unfairly targeting cryptocurrency businesses. The documents may shed light on the extent of the FDIC’s actions and the reasoning behind them.

If the allegations of the FDIC specifically targeting crypto companies are substantiated, it could have significant implications for the industry. Increased regulatory scrutiny and potential restrictions on banking relationships could hinder the growth and adoption of cryptocurrencies in the United States. This, in turn, may lead to a shift in crypto businesses moving to more crypto-friendly jurisdictions.

On the other hand, if the documents reveal that the FDIC’s actions were justified and based on legitimate concerns, it could provide clarity on the regulatory landscape and help establish clearer guidelines for crypto companies to operate within the existing financial system.

The release of these documents is likely to intensify the ongoing debate around the regulation of cryptocurrencies and the role of government agencies in overseeing the industry. As more information comes to light, market participants will be closely watching to see how this development unfolds and its potential impact on the future of crypto in the United States.

Tags: FDIC, Operation Chokepoint 2.0, crypto regulation, banking relationships, regulatory scrutiny

Source: https://decrypt.co/304559/fdic-operation-chokepoint-crypto-documents

Ethereum has bounced back to the $2,800 level following a recent price crash, as on-chain data reveals significant outflows from exchanges. According to IntoTheBlock, investors reacted to the dip by withdrawing a staggering 350,000 ETH, worth approximately $982 million, from centralized exchanges.

The timing of these outflows suggests that whales are likely accumulating Ethereum at discounted prices, contributing to the cryptocurrency’s recovery. The Exchange Netflow metric, which tracks the net movement of tokens in and out of exchanges, recorded its highest level of net withdrawals since January 2024.

This bullish trend could continue to influence Ethereum’s price in the near term, with sustained outflows potentially driving further upward momentum. However, a shift towards increased inflows might signal a bearish sentiment among investors.

In related news, the stablecoin USDC has experienced a surge in transaction volume, with daily transactions increasing by over 119% in the past year. As stablecoins often serve as a catalyst for trading activity in volatile assets like Ethereum, this growth in USDC usage could bode well for the broader cryptocurrency market.

Despite the recent recovery, Ethereum remains down more than 11% over the last seven days, trading at around $2,800 at the time of writing. As the market continues to evolve, investors should keep a close eye on key metrics like Exchange Netflow and stablecoin activity to gauge potential shifts in sentiment and price action.

Tags: Ethereum, ETH, Crypto Market, Exchange Outflows, Whales, USDC

Source: NewsBTC

In a bold move, U.S. lawmakers are intensifying their efforts to dismantle “Operation Chokepoint 2.0,” a controversial regulatory crackdown on the crypto industry’s access to banking services. The lawmakers have vowed to put an end to the alleged regulatory overreach and restore fair banking access for the thriving crypto sector.

This development comes as a relief to the crypto community, which has long been grappling with the challenges posed by the banking blacklist. The regulatory pressure has made it difficult for crypto businesses to secure essential banking services, hindering their growth and innovation. The lawmakers’ intervention is expected to level the playing field and foster a more conducive environment for the industry’s development.

The crypto market is likely to react positively to this news, as it signals a potential easing of regulatory hurdles. With fair banking access, crypto companies will be better positioned to expand their operations, attract investments, and drive mainstream adoption. This, in turn, could lead to increased liquidity, stability, and overall growth of the crypto market.

As the lawmakers continue to push back against the crackdown, it remains to be seen how the regulatory landscape will evolve. However, the crypto community is hopeful that this move will pave the way for a more balanced and supportive regulatory framework, enabling the industry to reach its full potential.

Tags: Crypto Regulation, Banking Access, US Lawmakers, Chokepoint 2.0, Crypto Market Impact

Source: https://news.bitcoin.com/us-lawmakers-fight-to-end-crypto-banking-blacklist-chokepoint-2-0-under-fire/

A fundamental shift in corporate finance is underway as companies increasingly turn to bitcoin as a reserve asset. With over 70 publicly traded companies now holding bitcoin on their balance sheets, this move represents a transformation in how businesses create and preserve shareholder value in an era of digital scarcity.

MicroStrategy, led by Michael Saylor, has been at the forefront of this trend, aggressively accumulating bitcoin and leveraging traditional finance approaches to build a sizable BTC treasury. The company’s strategy has popularized key metrics like bitcoin per share (BPS) and BTC yield, which allow investors to measure a company’s indirect bitcoin exposure and acquisition efficiency.

The regulatory environment is evolving to support this shift, with developments like the reversal of SAB21, FASB’s accounting changes, and the proposed Bitcoin Act 2024 enhancing bitcoin’s utility as a treasury asset. These changes enable corporations to leverage their bitcoin holdings more efficiently, recognize appreciation in earnings statements, and reduce systemic risks for adoption.

Companies embracing this strategy can now generate earnings growth through strategic bitcoin accumulation while simultaneously building a position in an asset with significant appreciation potential. This approach echoes Warren Buffett’s principles of finding businesses that can both generate current returns and reinvest capital at attractive rates.

The transformation ahead is about fundamentally rethinking corporate treasury management for an era of digital scarcity. Companies that recognize and act on this shift early will likely emerge as the Berkshire Hathaways of the digital age, with a significant advantage in building treasury positions at attractive prices.

As we enter this new era in corporate finance, bitcoin’s unique properties combine with evolving financial infrastructure to create unprecedented opportunities for value creation and preservation. The companies that seize this opportunity will be well-positioned to thrive in the future of finance.

Tags: corporate finance, bitcoin, treasury management, digital scarcity, shareholder value

Source: https://www.coindesk.com/coindesk-indices/2025/02/05/the-great-accumulation-a-corporate-race-for-bitcoin

Standard Chartered predicts that the price of Bitcoin (BTC) could skyrocket to an astounding $500,000 by 2028. The bank attributes this potential surge to increased investor access through maturing exchange-traded funds (ETFs) and diminishing volatility, solidifying Bitcoin’s position as a unique hedge against traditional finance woes.

The growing maturity of the year-old U.S. ETF market is expected to tame Bitcoin’s volatility, as noted by Geoffrey Kendrick, the global head of digital assets research at Standard Chartered. Furthermore, the Trump administration’s stance is improving access to BTC, while institutional inflows into spot Bitcoin ETFs are projected to maintain their upward trajectory.

These two factors are poised to elevate Bitcoin’s share in an optimized two-asset portfolio with gold, leading to long-term price appreciation as the portfolio gravitates towards its optimal state. Kendrick asserts that this dynamic is sufficient to propel Bitcoin to the $500,000 mark before the conclusion of Trump’s presidency.

Standard Chartered has set a year-end price target of $200,000 for Bitcoin, with a 2026 target of $300,000. Currently, Bitcoin is trading around $98,000, and the bitcoin-gold ratio has recently dipped to its lowest point since mid-November. This decline can be attributed to gold’s surge amidst persistent U.S.-China trade war concerns and heightened Chinese demand.

As institutional investors increasingly recognize Bitcoin’s potential as a portfolio diversifier and hedge against traditional market uncertainties, the cryptocurrency’s adoption and price are likely to experience significant growth in the coming years. The development of a robust ETF market will play a crucial role in this process, providing a more accessible and regulated avenue for institutional capital to flow into the digital asset space.

Tags: Bitcoin price prediction, Bitcoin ETFs, institutional investors, portfolio diversification, Bitcoin volatility

Source: https://www.coindesk.com/markets/2025/02/05/bitcoin-to-hit-usd500k-by-2028-as-etfs-ease-access-volatility-drops-standard-chartered

Wall Street Pepe (WEPE) has taken the crypto world by storm, with its presale nearing an impressive $70 million raised and only 11 days left before launch. Investors are eager to see if this meme coin can live up to the hype and deliver substantial returns.

The success of Wall Street Pepe’s presale indicates a strong demand for meme coins, despite the inherent risks associated with such investments. The project’s ability to capture the attention of the crypto community and raise significant funds in a short period is a testament to the power of viral marketing and the allure of potential quick gains.

However, it remains to be seen whether Wall Street Pepe can sustain its momentum post-launch and establish itself as a viable long-term investment. Meme coins are notorious for their volatility and often lack the fundamental value that underpins more established cryptocurrencies.

Investors should approach Wall Street Pepe with caution and conduct thorough research before committing funds. The project’s success will largely depend on its ability to foster a strong community, maintain market interest, and deliver on its promises.

As the crypto market continues to evolve, meme coins like Wall Street Pepe will likely remain a speculative and high-risk investment option. While some investors may be drawn to the potential for significant returns, it is crucial to consider the risks and exercise due diligence when engaging with such projects.

Tags: Wall Street Pepe, WEPE, meme coin, presale, crypto investment, market speculation

Source: https://news.bitcoin.com/wall-street-pepe-nears-70m-in-presale-with-only-11-days-left-before-launch-next-big-meme-coin/

In a significant development for the crypto industry, David Sacks, the newly appointed US AI and Crypto Czar, revealed that his team is exploring the feasibility of establishing a Strategic Bitcoin Reserve. This move could dramatically alter the government’s approach to digital assets and pave the way for greater mainstream adoption of cryptocurrencies.

Sacks, a prominent venture capitalist and former PayPal executive, is known for his strong advocacy of Bitcoin as a hedge against inflation and a means to liberate money from government control. His appointment to a key role in shaping US crypto policy, combined with his push for a Bitcoin reserve, suggests a potential shift in the nation’s stance towards digital currencies.

While countries like El Salvador have already incorporated Bitcoin into their national reserves, the prospect of a global superpower like the United States following suit is unprecedented. If realized, a US Bitcoin reserve could significantly enhance the appeal and influence of the cryptocurrency in international financial markets, potentially attracting more institutional investors and driving up demand.

However, the path to establishing such a reserve is not without challenges. The US government has had a complex relationship with cryptocurrencies, often grappling with the balance between financial oversight and fostering innovation. Sacks will need to navigate the regulatory landscape and create the necessary framework to support a Bitcoin reserve.

Market observers suggest that even the mere consideration of a Bitcoin reserve by the US government could have a positive impact on the cryptocurrency’s price. If the US signals its interest in holding Bitcoin as a strategic asset, it may encourage other institutional investors to follow suit, potentially leading to increased demand and price appreciation.

From a geopolitical perspective, a US Bitcoin reserve could also serve as a response to the growing trend of countries like China and Russia moving away from the US dollar for trade settlements. By embracing an open system like Bitcoin, the US may find an alternative way to assert its economic power in a world of shifting dynamics.

Furthermore, the presence of Bitcoin in the national reserves could provide an additional buffer against future depreciation of fiat currencies, offering increased economic stability amidst ongoing inflationary pressures.

As the discussion surrounding a potential US Bitcoin reserve unfolds, its impact on the crypto industry and global financial landscape is likely to be closely watched by authorities and investors alike. Whether or not the US ultimately establishes such a reserve, the mere fact that it is being considered at the highest levels of government marks a significant milestone for Bitcoin and the broader crypto ecosystem.

Tags: US Bitcoin reserve, crypto regulation, institutional adoption, geopolitics, economic stability

Source: https://bitcoinist.com/crypto-czar-david-sacks-drops-bombshell-us-weighing-bitcoin-reserve-strategy/