Week 1 Newsletter, Bitcoin, Ethereum and Trump
Bitcoin conference organizer on Trump's call for U.S. strategic Bitcoin reserve
A strategic cryptocurrency approach challenges traditional banking, hinting at potential shifts in strategy.
President Donald Trump's proposal to create a strategic bitcoin reserve has stirred excitement and debate, capturing the attention of industry leaders.
Roundtable anchor Rob Nelson chatted with David Bailey, the mastermind behind the largest Bitcoin conference and CEO of BTC Inc., to explore the implications of such a move, discussing its potential impact on the Federal Reserve, Treasury, and broader financial system.
"Trump's idea of a strategic bitcoin reserve brings incredible value," said Rob Nelson. "It provides a new way of managing value and opportunity, even if bitcoin doesn't entirely take over." However, he criticized Federal Reserve Chair Jerome Powell's move to answer questions about that proposed plan from the Fed's point of view. Bitcoin's price sold off after a reporter asked about Trump's plan and Powell noted the Fed was not asking for any sort of embrace of Bitcoin.
Bailey emphasized that establishing a bitcoin reserve falls under the Treasury's jurisdiction, not the Federal Reserve's. "The president has full authority via executive order to create a digital Fort Knox," Bailey explained. "This could be a significant component of the U.S. Treasury's strategy to reclaim financial power from the Federal Reserve."
Economic Data Fuels Bitcoin Correction, Wall Street Sell-Off
A sharp Bitcoin price correction triggered by stronger-than-expected U.S. economic indicators has sent shockwaves through markets, pulling down equities like MicroStrategy and Coinbase and raising fresh concerns about the Federal Reserve’s interest rate trajectory for 2025.
Bitcoin’s recent price rally met a sharp reversal as the cryptocurrency fell almost 5% yesterday, coinciding with significant market turbulence across equities and risk assets.
The correction was triggered by fresh U.S. economic data, which dampened expectations for imminent Federal Reserve rate cuts. Stocks, including crypto-related equities like MicroStrategy and Coinbase, also saw steep declines, reflecting the broader risk-off sentiment.
Bitcoin’s Retreat Amid Economic Indicators
The U.S. Bureau of Labor Statistics released data showing a rise in job openings to 8.1 million in November, up from 7.8 million in October and surpassing the 7.7 million forecast, Associated Press reported.
This increase, coupled with the Institute for Supply Management’s (ISM) services index showing acceleration in December activity and rising prices, signaled persistent economic strength and inflationary pressures. Treasury yields climbed in response, with the 10-year yield hitting a high of 4.699%, its highest level since April. Rising yields typically weigh on speculative assets like Bitcoin, which dropped to around $96,200, down 5% in 24 hours.
The broader crypto market reflected this bearish sentiment. Ethereum fell 8.4% to $3,371, and Solana tumbled 8.23% to $199. Total crypto market capitalization declined nearly 6% to $3.37 trillion, per CoinMarketCap data.
DID YOU KNOW?
You can up your crypto game and gain an upper hand RIGHT NOW by grabbing a 7-day FREE trial to Coin Club!
What do you get access to when subscribing?
Keep reading with a 7-day free trial
Subscribe to Coin Club to keep reading this post and get 7 days of free access to the full post archives.