💶 ‘No to CBDC, yes to Bitcoin’

Bitcoin is being seriously considered for a reserve, but does it really match gold as a store of value? Is it truly a kind of digital gold?

Here’s what we got for you today:

• ⬆️⬇️ 2 Contrasting Trends in Bitcoin Investing

• 🟡 Bitcoin vs. Gold: The Emerging Digital Rivalry

• ⭐ Top Highlight in Crypto Today

• 🤡 Meme Of The Day

⬆️⬇️ 2 Contrasting Trends in Bitcoin Investing

👆️ Shrimp Wallets Increase

• This growth began when Bitcoin was priced at $61,000, and since then, the number of shrimp wallets has risen by 21.9%.

• This trend indicates growing retail (small-scale) interest in Bitcoin, with investors continuing to accumulate Bitcoin even as its price surpasses $100,000. Despite the high price, these smaller investors are showing confidence in Bitcoin's long-term value.

👇️ Long-Term Holders Selling:

Long-term holders are defined as those who have held Bitcoin for at least 155 days. Over the past month, these holders have sold a substantial amount of Bitcoin - 827,783 BTC.

→ Some analysts believe this large sell-off by long-term holders may signal a potential market peak, suggesting that the price could decrease if buying demand weakens.

→ Alternative view: Analysts from Bitfinex believe that future declines in Bitcoin’s price may not be as sharp as previous drops. They suggest that the reduction in selling pressure (fewer long-term holders cashing out) could lead to less abrupt price corrections in the future.

Conclusion: Despite Bitcoin's high price, small investors (shrimp wallets) are continuing to accumulate, showing confidence in the long-term growth of Bitcoin. However, long-term holders are beginning to sell, which may suggest a potential peak in the market. The interaction between these two groups will likely influence Bitcoin's price movements going forward.

🟡 Bitcoin vs. Gold: The Emerging Digital Rivalry

Bitcoin has long been described as "digital gold," but does it truly compete with gold as a store of value? Let’s break down the key arguments and trends:

1. Bitcoin's Current Role

Bitcoin remains a speculative asset for most investors due to its high volatility. Unlike gold, it’s not yet widely used as a payment method or store of value. However, its growing adoption positions it as a serious competitor to traditional assets like gold.

Jerome Powell, U.S. Federal Reserve Chair, recently acknowledged Bitcoin as "digital gold", emphasizing its role as a speculative tool rather than a currency. Powell avoids fully endorsing Bitcoin, as his priority is maintaining confidence in the U.S. dollar and Treasury bonds.

The Bitcoin/Gold ratio reached a new record, with 1 Bitcoin equal to 40 ounces of gold, as Bitcoin surpassed $106,000 and gold hit $2,650 per ounce.

This ratio measures Bitcoin's purchasing power relative to gold. Veteran trader Peter Brandt predicts it could rise to 89 ounces of gold per Bitcoin as Bitcoin approaches gold's $15 trillion market cap.

2. Why Bitcoin Competes With Gold

• Limited Supply: Bitcoin’s supply is capped at 21 million, similar to gold’s scarcity. This fixed limit makes Bitcoin attractive as a hedge against inflation.

• Digital Advantage: Bitcoin’s decentralized and digital nature makes it easier to store and transfer compared to gold. It’s gold, reimagined for the digital age.

• Store of Value Debate: Gold has been used as a store of value for centuries. Critics argue that Bitcoin’s price volatility prevents it from serving the same role. Yet, over time, more investors view Bitcoin as an asset that can preserve value—especially in uncertain economic conditions.

3. U.S. Debt and Powell’s Stance

The U.S. government relies heavily on Treasury bonds to fund its operations. Powell needs investors to purchase these bonds, not alternative assets like Bitcoin or gold. If Bitcoin becomes too dominant, it could erode confidence in the U.S. dollar, a scenario the Fed must avoid.

In fact, Powell’s cautious stance on Bitcoin highlights its rising influence. While he downplays Bitcoin’s role, the very comparison to gold shows its growing legitimacy among institutions and governments.

⭐ Top Highlight in Crypto Today

💰 BlackRock releases 3 minute educational video explaining what #Bitcoin is.

💰 Ripple has officially launched its dollar-backed stablecoin, RLUSD, on December 17, 2024. The stablecoin is now available for trading on several global cryptocurrency exchanges, including Bitso, Uphold, CoinMENA, MoonPay, and Archax.

📜 The Satoshi Act Fund, an organization that collaborates with policymakers on Bitcoin regulation, has finalized a draft for a model Executive Order. This order proposes the establishment of a "Strategic Bitcoin Reserve" for the United States 🇺🇸. President Trump could sign the order on his first day in office if he wants.

📢 European MP Sarah Knafo urged the EU to reject the digital euro (CBDC) and create a strategic Bitcoin reserve, emphasizing freedom over centralized control and regulation.

💶 Tether invested in Malta-based StablR, a MiCA-compliant euro and USD stablecoin issuer. After USDT was delisted from most European exchanges, Tether aims to regain market share through this partnership.

🤡 Meme Of The Day

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