Crypto News
December 16, 2024 Read More
Key Developments
  • Bitcoin-oriented new highs: 1) Bitcoin’s price hit a new all-time high of $99,748.77 on Coinbase on Nov. 21. 2) Bitcoin’s market cap reached a new milestone, surpassing silver and Saudi Aramco – making it the world’s 7th largest asset at ~$2 trillion. 3) Bitcoin mining difficulty breached the 100 trillion level for the first time on Nov. 5. 4) Screven County, Georgia made history on Nov. 5 when it became the first county in the US to use the Bitcoin blockchain to safeguard the results of its elections.
  • Governments and pensions planning – or considering – adding Bitcoin: 1) Brazil’s Chamber of Deputies introduced a bill to create a sovereign strategic Bitcoin reserve, designed to diversify the financial assets of Brazil’s National Treasury. 2) The Pennsylvania House of Representatives introduced a bill that would enable the state to hold Bitcoin (up to a 10% allocation) as a reserve asset. 3) Vancouver Mayor Ken Sim revealed plans to incorporate Bitcoin into the city’s investment portfolio. 4) Jersey City’s pension fund said it plans to buy Bitcoin (via ETFs) in the coming weeks. 5) An undisclosed UK pension fund invested 3% of its total assets in Bitcoin, a first-ever Bitcoin investment by a British defined benefit scheme.
  • Bitcoin on the corporate balance sheet: The following public and private companies either bought – or announced plans to add – Bitcoin: MicroStrategy, MARA Holdings, Metaplanet, Semler Scientific, Genius Group, Solidion Technology, Nano Labs, Cosmos Health, Hoth Therapeutics, Rumble, Oasis Engineering, SOS Ltd, Interactive Strength, Acurx Pharmaceuticals, Anixa Biosciences, and Remixpoint.
  • Bitcoin-related ETF advances: 1) US spot Bitcoin ETFs surpassed $100 billion in combined AUM on Nov. 20. 2) The CFTC and OCC approved options trading for spot Bitcoin ETFs. (IBIT options on IBIT began trading on Nov. 19.) 3) First Trust and Calamos filed to launch a slew of Bitcoin defined outcome (“buffer”) ETFs.
  • The State of Michigan Retirement System disclosed a $10 million investment in Grayscale’s spot Ethereum ETF, becoming the first pension fund to invest in the financial instrument since its July launch.
  • Charles Schwab’s incoming CEO Rick Wurster, who steps into the new role on Jan. 1, said the firm is looking to offer spot cryptocurrency trading once US regulations make doing so easier. Per Wurster: “We will get into spot crypto when the regulatory environment changes, and we do anticipate that it will change, and we’re getting ready for that eventuality.”
  • In a policy change, Morocco is set to legalize cryptocurrencies, overturning a 2017 ban on digital assets. Abdellatif Jouahri, Governor of Morocco’s central bank, announced that a draft law regulating cryptocurrency assets is nearing final adoption.
  • Deutsche Telekom is rolling out a pilot, along with Bankhaus Metzler (Germany’s oldest bank) that will see surplus energy from renewable sources used to mine Bitcoin. The project is called “Digital Monetary Photosynthesis.”
  • Detroit will allow its residents to pay their taxes and other city fees with cryptocurrency as the city looks to “modernize” and attract blockchain companies to the city. Detroit’s Office of Treasury said the new crypto payment options would be offered through a “secure payment platform managed by PayPal” in mid-2025.
  • Visa and Coinbase announced a partnership that will enable real-time account funding and withdrawals for Coinbase users through Visa Direct. It will allow customers with eligible Visa debit cards to instantly fund their Coinbase accounts, buy crypto, and cash out to bank accounts – a process significantly faster than the current 1-3 day waiting process.
  • Tokenization: 1) UBS Asset Management launched its first tokenized investment fund, the “UBS USD Money Market Investment Fund Token” (uMINT) on Ethereum’s blockchain. 2) Singapore’s central bank released frameworks to drive tokenization in finance, focusing on deepening liquidity and creating common settlement networks for traditional assets. 3) JPMorgan rebranded its blockchain platform, from Onyx to Kinexys, as it looks double down on real-world asset tokenization efforts. 3) BlackRock’s tokenized BUIDL fund is expanding from Ethereum to the Aptos, Arbitrum, Avalanche, Optimism, and Polygon blockchains. 4) Franklin Templeton is expanding trading of its OnChain US Government Money Market Fund (FOBXX) to Ethereum. 5) Tether launched its asset tokenization service, Hadron, to simplify the process of converting real-world assets including bonds, commodities, stocks, other stablecoins, and loyalty points into digital tokens on blockchain rails. 6) Mastercard connected its blockchain-based system for shifting tokenized assets, the Multi-Token Network, with JPMorgan’s Kinexys.
  • A “red wave” materialized, as Trump was elected to a second term and Republicans won control of the Senate and the House – putting the party in the majority across the federal government. Trump’s victory, in particular, marked a historic moment for the crypto industry since the president-elect has made several commitments to turn America into a pro-crypto nation. He added numerous crypto backers to his staff, including RFK Jr., Elon Musk, Vivek Ramaswamy, Howard Lutnick, Jay Clayton, Scott Bessent, Paul Atkins, and David Sacks.
Frequently Asked Questions (FAQ)

1. What is Cryptocurrency?
Answer: Cryptocurrency is a type of digital or virtual currency that uses cryptography for security. It operates on decentralized networks based on blockchain technology. Popular examples include Bitcoin, Ethereum, and Litecoin.

2. How does cryptocurrency work?
Answer: Cryptocurrencies work by utilizing blockchain technology. A blockchain is a distributed ledger or database that records all transactions across a network of computers. Transactions are validated by network participants (miners or validators), and once confirmed, they are stored in blocks, making them secure and immutable.

3. What is Blockchain?
Answer: A blockchain is a decentralized and distributed digital ledger that records transactions across many computers. Each “block” contains a list of transactions, and these blocks are linked together to form a chain, hence the term “blockchain.”

4. What is Bitcoin?
Answer: Bitcoin is the first and most well-known cryptocurrency, created in 2009 by an anonymous person (or group) under the pseudonym Satoshi Nakamoto. Bitcoin is often referred to as “digital gold” because it is used as a store of value and has a limited supply (21 million coins).

5. What is Ethereum?
Answer: Ethereum is a decentralized, open-source blockchain platform that supports smart contracts and decentralized applications (dApps). It is the second-largest cryptocurrency by market capitalization after Bitcoin. Ethereum’s native cryptocurrency is called Ether (ETH).

6. What are Altcoins?
Answer: Altcoins are any cryptocurrencies other than Bitcoin. Examples include Ethereum (ETH), Litecoin (LTC), Ripple (XRP), and Cardano (ADA). These coins often serve different purposes or offer improvements over Bitcoin, such as faster transactions or more scalable networks.

7. How can I buy cryptocurrency?
Answer: Cryptocurrencies can be bought through exchanges such as Coinbase, Binance, Kraken, or Gemini. To buy crypto, you typically need to create an account on one of these platforms, deposit fiat money (like USD), and exchange it for your chosen cryptocurrency.

8. What is a Wallet in Cryptocurrency?
Answer: A cryptocurrency wallet is a digital tool that allows you to store, send, and receive cryptocurrencies. There are two main types of wallets:
• Hot wallets (software-based, connected to the internet).
• Cold wallets (hardware-based, offline storage for extra security).

9. What is Mining in Cryptocurrency?
Answer: Mining is the process by which new cryptocurrency coins are created and transactions are verified and added to the blockchain. Miners use powerful computers to solve complex mathematical problems, and in return, they are rewarded with new coins (like Bitcoin).

10. What are Smart Contracts?
Answer: Smart contracts are self-executing contracts with the terms of the agreement directly written into code. They automatically execute actions when predefined conditions are met. Smart contracts are a key feature of platforms like Ethereum.

11. What are NFTs?
Answer: Non-Fungible Tokens (NFTs) are unique digital assets stored on the blockchain. Unlike cryptocurrencies, which are interchangeable (like one Bitcoin for another), NFTs represent ownership or proof of authenticity for a specific item, such as digital art, music, or virtual real estate.

12. What are the risks of investing in cryptocurrency?
Answer: Cryptocurrency investments are highly speculative and come with significant risks, including:
• Price volatility: Cryptocurrencies can experience dramatic price swings.
• Regulatory risk: Governments may impose regulations or bans on cryptocurrencies.
• Security risks: Cryptocurrencies are vulnerable to hacking, fraud, and theft.
• Market manipulation: The cryptocurrency market is less regulated, which can lead to market manipulation.

13. What is a Decentralized Exchange (DEX)?
Answer: A decentralized exchange (DEX) is a platform that allows users to trade cryptocurrencies directly with each other, without the need for a centralized authority or intermediary. Examples include Uniswap and SushiSwap.

14. What is a Centralized Exchange (CEX)?
Answer: A centralized exchange is a platform where cryptocurrencies are traded through a centralized authority. These exchanges handle the matching of buy and sell orders and often offer additional services, such as customer support and account recovery. Examples include Coinbase, Binance, and Kraken.

15. What is Staking?
Answer: Staking is the process of holding a cryptocurrency in a wallet to support the operations of a blockchain network (particularly proof-of-stake blockchains). In return, stakers earn rewards, often in the form of additional coins or tokens.

16. What is a “Pump and Dump” scheme?
Answer: A “Pump and Dump” is a type of market manipulation where the price of a cryptocurrency is artificially inflated (pumped) through misleading or exaggerated statements. Once the price rises, those who initiated the pump sell off their holdings (dump), causing the price to crash.

17. What is DeFi (Decentralized Finance)?
Answer: DeFi refers to financial services that operate on decentralized platforms using blockchain technology. These services include lending, borrowing, trading, and yield farming, all without the need for traditional financial intermediaries like banks.

18. Is cryptocurrency legal?
Answer: The legality of cryptocurrency varies by country. In some countries, cryptocurrencies are fully legal and regulated, while in others, they may be banned or restricted. It’s important to check the legal status of cryptocurrency in your jurisdiction before buying or trading.

19. What is a “Whale” in the cryptocurrency market?
Answer: A “whale” is a term used to describe individuals or entities that hold large amounts of a particular cryptocurrency. Whales have the potential to influence the market due to the size of their holdings.

20. How can I protect my cryptocurrency investments?
Answer: To protect your cryptocurrency investments, consider the following:
• Use a hardware wallet for long-term storage.
• Enable two-factor authentication (2FA) on exchanges and wallets.
• Use strong, unique passwords.
• Be cautious of phishing attacks and scams.
• Regularly back up your wallet’s private keys.

21. What is a Token in cryptocurrency?
Answer: A token is a type of cryptocurrency that represents an asset or a utility on a specific platform. Tokens can be used for various purposes, such as representing ownership in a project, granting access to certain services, or serving as part of a governance mechanism.

22. What is a Cryptocurrency Fork?
Answer: A cryptocurrency fork occurs when there is a change in the protocol of a cryptocurrency, resulting in a new version of the blockchain. Forks can be soft forks (backward-compatible) or hard forks (incompatible with the previous version). Examples include Bitcoin Cash (from Bitcoin) and Ethereum Classic (from Ethereum).

23. What is the difference between a coin and a token?
Answer: A coin typically refers to a cryptocurrency that operates independently on its own blockchain (e.g., Bitcoin, Ethereum), while a token is a digital asset built on top of an existing blockchain (e.g., tokens on Ethereum or Binance Smart Chain).

24. How do I track the price of cryptocurrencies?
Answer: Cryptocurrency prices can be tracked on websites and apps such as CoinMarketCap, CoinGecko, and Binance. These platforms provide real-time price data, market capitalization, and historical price charts.

25. Can I use cryptocurrency for everyday purchases?
Answer: Yes, some businesses and merchants accept cryptocurrency as payment for goods and services. However, cryptocurrency adoption as a payment method is still limited compared to traditional currencies. Some payment processors, such as BitPay, help facilitate crypto payments for businesses.

26. Why did Bitcoin set new all-time highs in November?
Answer: A Trump win (pro-crypto), a red wave (pro-crypto), and increased buying (including ETFs) from investors (corporations, governments, pensions, institutions, retail, etc.) certainly aided the move. In addition, November is Bitcoin’s best-performing month, historically. On average it’s roughly 2x better than its second-best month (October). Bitcoin returned nearly 40% in November, which is close to its long-term average for the month.

27. I missed the boat with Bitcoin. Is it too late to invest now?
Answer: No, it’s still the early innings for Bitcoin. Both retail and institutional ownership still have a lot of room to grow. And with demand set to increase and a finite supply, Bitcoin’s price should continue to go higher over the long term. Just keep in mind that 30%+ drawdowns are par for the course with Bitcoin.

28. Are there opportunities beyond Bitcoin?
Answer: Yes. There are almost 200 other cryptocurrencies with more than a $500 million market cap (and another 10,000+ listed on CoinMarketCap). In terms of analogies, Bitcoin is like Gold. Beyond that, Ethereum is like Apple’s App Store… Solana is like Android… Binance is like JPMorgan… Chainlink is like Intel… Chiliz is like DraftKings… and The Sandbox is like Activision Blizzard. There are also multiple sectors to analyze, such as DeFi, AI, RWA, Gaming, NFT, DePIN, and so on. The point is there are many other crypto investments (and sectors) with different use cases and valid investment cases, some of which have outperformed Bitcoin over various time periods.

29. What are memecoins?
Answer: Memecoins are cryptocurrencies inspired by internet memes, characters, or trends. Dogecoin, Shiba Inu, and Pepe are three of the largest, most successful, and most popular memecoins. With tens of thousands of memecoins created daily, the State of Memecoin 2024 report found that the average lifespan of a memecoin is 12 months and 97% of memecoins have already died. Suffice it to say, memecoins are the epitome of high-risk, high-reward investments in the crypto space.

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Crypto News December 16, 2024

NYDIG: Bitcoin ended the week above $100K, up 0.9%. Although Bitcoin was largely unchanged, the week wasn’t without its volatility. On Dec. 9, the broader digital asset market experienced a price correction resulting in $1.55B in long perp liquidations. Liquidations on Bitcoin were only a small portion of that total, $143M, with most of the liquidations hitting the altcoin market, hinting at where most of the leverage was in the market.

According to blockchain analytics platform SpotOnChain, on Dec. 9, the Royal Government of Bhutan transferred 402 Bitcoin (worth ~$40 million) to QCP Capital. Bhutan’s government has been actively selling its Bitcoin reserves, in a series of transactions, since Oct.

Russian state-owned domestic news agency RIA Novosti reported that State Duma deputy Anton Tkachev proposed creating a Russian strategic Bitcoin reserve.

Vancouver's City Council approved exploring Bitcoin integration into municipal finance, including accepting taxes and holding reserves in BTC, and a feasibility report is due by Q1 next year.

A proposed bill, H.B. No. 1598, was introduced by Texas State Representative Giovanni Capriglione. It seeks to build up a supply of Bitcoin for the state, with the funds held for at least five years without being sold, plus it will allow Texas citizens to make donations to the fund.

Alabama State Auditor Andrew Sorrell said: “The debate over whether crypto will succeed has ended” and called for the state to add Bitcoin as a strategic reserve to diversify a portion of its holdings. Sorrell added that doing so would position Alabama as a crypto-friendly state, which would attract more business and investment.

BlackRock, the world's largest investment firm with $11.5 trillion in AUM and issuer of the largest spot Bitcoin ETF, recommended allocating up to 2% of multi-asset portfolios to Bitcoin in an institutional investor report on Dec. 12.

Billionaire investor Ray Dalio, founder of the world's largest hedge fund, Bridgewater Associates, endorsed Bitcoin and gold as “hard money” over debt assets amid rising global indebtedness. Dalio said in a speech during the Abu Dhabi Finance Week in the UAE: “I want to steer away from debt assets like bonds and debt, and have some hard money like gold and Bitcoin.”

MicroStrategy acquired an additional $2.1 billion worth of Bitcoin, purchasing 21,550 BTC at an average price of $98,783. This brings the company’s total Bitcoin holdings to 423,650 BTC valued at nearly $42 billion.

Microsoft shareholders voted against a proposal that would have directed the board of directors to add Bitcoin to diversify the company’s assets. The company, according to the board, prioritizes stable and predictable investments to mitigate as much risk as possible.

Chinese company Nano Labs increased its Bitcoin holdings to 360 BTC worth $36 million.

Conservative think tank National Center for Public Policy Research (NCPPR) called on Amazon to follow MicroStrategy in adding Bitcoin to its corporate treasury as an inflation hedge and way to boost shareholder value. Per the proposal: At minimum, Amazon should evaluate the benefits of holding some, even just 5%, of its assets in Bitcoin.”

El Salvador is preparing to amend its Bitcoin law to make Bitcoin acceptance optional for merchants as part of an agreement to secure $3.3 billion in loans from international financial institutions.

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