The biggest crypto news and ideas of the day |
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Strong Economic Data Hits Bitcoin |
Crypto markets stumbled with bitcoin (BTC) losing the $100,000 level on Tuesday U.S. morning as two stronger-than-expected U.S. economic data points threw cold water on digital assets' bright early-year momentum. The Bureau of Labor Statistics' JOLTS job openings for November unexpectedly rose to 8.1 million from 7.8 million the previous month, easily topping analyst estimates for a decline to 7.7 million. Released at the same time, the ISM Services Purchasing Managers Index, a monthly gauge of the level of economic activity in the services sector, came in at 54.1 for December, overshooting expectations for 53.3 and nicely ahead of November's 52.1. The Prices Paid subindex came in red-hot at 64.4, compared to the expected 57.5 and 58.2 in the previous month. While neither report generally tends to be much of a market mover, combined they further shook up an already jittery bond market, sending the 10-year U.S. Treasury yield higher by another five basis points to 4.68% and within a few ticks of multi-year highs. The move took U.S. stocks lower, with the Nasdaq now off by more than 1% in late morning action and the S&P 500 lower by 0.4%. BTC, which traded just below $101,000 through European afternoon hours, dipped to $97,800 following the data, giving up yesterday's gains and down 4% over the past 24 hours. Altcoin majors declined even more with Ethereum's ether (ETH) and Solana's SOL losing 6%-7%, while Avalanche's AVAX and Chainlink's LINK tumbled 8%-9%. The swift decline in prices liquidated nearly $300 million long positions across derivatives markets betting on rising prices, according to CoinGlass, marking the first large leverage flush of the year. The strong data also has investors further rolling back their expectations of rate cuts in 2025. While market participants had already written off any chance of a rate cut at the Fed's January meeting, they now see just a 37% chance of an easing move at the central bank's March meeting, down from nearly 50% just a week ago, according to the CME FedWatch tool. Looking out even further, the odds of a rate cut in May are also now well below 50%. Scanning all of 2025, Ballinger Group's Kyle Chapman noted investors are now only pricing in roughly only one 25 basis point rate cut for the entire year. |
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Crypto Correlates With Stocks |
Since the November 5 election of Donald Trump to the U.S. presidency, bitcoin (BTC) is up around 47%, sharply outperforming the S&P 500's 4% advance.
The incoming president, of course, has made clear his friendliness towards bitcoin and crypto. Also worth consideration is the Republican sweep of the Senate and House of Representatives, where laws that might affect crypto will ultimately be passed. Andre Dragosch, Head of Research at Bitwise in Europe, spoke exclusively with CoinDesk about other factors affecting the divergence between bitcoin and stocks.
"My view on bitcoin versus S&P 500 is that the stock market has been negatively affected by the Fed's hawkish rate cut in December," said Dragosch. "The Fed revised its planned rate cuts for 2025 to 2 rate cuts only, less than previously telegraphed and also less than previously anticipated by traditional financial markets."
At the same time, the DXY index, which measures the value of the U.S. dollar against a basket of the major currencies, is up 5%, putting further pressure on risk assets. That might typically include a hurt on bitcoin, but Dragosch explains that it held up relatively well thanks to other factors, the ongoing bitcoin supply deficit on exchanges being among them. "Bitcoin exchange balances have continued to drift lower despite profit-taking," he continued. |
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Gemini Agrees to Pay $5M in CFTC Case |
Crypto exchange Gemini agreed to pay $5 million to settle a case with the U.S. Commodity Futures Trading Commission over allegedly misleading statements it made more than seven years ago about how easily the price of a bitcoin futures contract could be manipulated. Cameron and Tyler Winklevoss' exchange settled without admitting or denying liability, according to a letter on Monday from the CFTC's attorney, K. Brent Tomer. A trial for the case had been set to start Jan. 21, but that will no longer proceed. The CFTC sued Gemini in 2022, alleging it had misled the U.S. regulator during in-person meetings that occurred in 2017. Part of the deal also included an injunction to prevent Gemini from making false or misleading statements to the commission in the future. These types of injunctions are common in settlements or lawsuits by federal securities and commodities regulators. Gemini also faces another case with the Securities and Exchange Commission (SEC). A judge ruled in March that the SEC could sue the exchange for violating securities laws. In the absence of legislation relating specifically to the crypto industry, U.S. regulators have sued a number of crypto exchanges, including Coinbase and Binance, for violating securities laws. Many observers have said pro-crypto comments made by President-elect Donald Trump indicate he will appoint regulators with a less confrontational attitude to the industry and a reduction in so-called regulation by enforcement. |
More Companies Adopt Saylor Strategy |
As interest in digital assets continues to rise, a new phase of corporate adoption for bitcoin (BTC) appears to be taking shape, with publicly listed firms following MicroStrategy's lead by adding BTC to their balance sheets. It all started with MicroStrategy (MSTR) adopting BTC as Treasury asset in 2020. Since then, its share price has jumped almost 2,500%. Over the years, the company has boosted its coin stash through cash, at-the-market (ATM) equity offerings, convertible debt or, more recently they said they would also use preferred stock offerings.
In 2024, we saw multiple companies follow suit and adopt a bitcoin treasury strategy, such as Metaplanet (3350), Semler Scientific (SMLR), MARA Holdings (MARA), as well as many other publicly traded miners that have also achieved great success.
Now more firms are joining the party.
The first company emerging from the second wave is KULR Technology Group (KULR), which trades on the NYSE, announced a $21 million bitcoin purchase on Monday. This takes its total bitcoin holding to 430 BTC at an average weighted price of $98,393 per token. KULR has leveraged a combination of an ATM equity program and surplus cash to fund its purchase. Like the other pioneers of this strategy, they have adopted a BTC yield strategy, coming in at 93.7% from December 2024 to January 2025. KULR's share price has been up 847% since Nov. 19.
As of Jan. 7, there also seems to be an emergence of publicly traded companies that have announced a bitcoin treasury strategy, but have yet to acquire any bitcoin.
First up, Acurx Pharmaceuticals (ACXP), trading on the Nasdaq, whose board approved a purchase of up to $1 million in bitcoin on Nov. 20. The share price has been down 35% since Nov. 19, but it is up 30% year-to-date.
The same is true for Hoth Therapeutics (HOTH), also on the Nasdaq. Its board approved a $1 million bitcoin purchase, back in Nov. 20 but there has been no acquisition yet. However, the share price is up 2% since Nov. 19.
The third company to have approved a $1 million bitcoin treasury strategy is Nasdaq-listed LQR House (YHC). On Nov. 19, the firm made the announcement that they have also accepted cryptocurrency payments and adopted a policy to retain up to $10 million of these payments in bitcoin. The share price is up 56% since Nov. 19.
NYSE-listed SOS Limited (SOS) approved a $50 million purchase of bitcoin on Nov. 27. The announcement was made when bitcoin was $93,000 a token. The share price has been down 30% since Nov. 19. |
The Takeaway: Agora's Nick van Eck |
Having travelled extensively through many emerging markets, Nick van Eck, the CEO and co-founder of stablecoin issuer Agora, is keenly aware of the problems that currency debasement and a lack of sound financial systems can create for citizens of these countries.
With AUSD, Agora’s flagship stablecoin product, van Eck is focused on solving the unique challenges these nations face. “With stablecoins, people in places like Argentina or India can save money without worrying about inflation or capital controls,” van Eck said in a recent interview with CoinDesk. “It’s a simple yet revolutionary tool that can change lives, especially when and where traditional banking systems fall short.”
Van Eck has extensive experience as a tech investor and a family background in the gold sector — van Eck, the fund company founded by his grandfather, manages one of the world’s largest gold mining funds. Early on, Nick van Eck recognized BTC’s potential as a store of value and aligned himself with the principles of early Bitcoiners.
Fresh off a two-week trip with his family to South America’s Patagonia region, van Eck spoke about the evolving role of stablecoins in emerging markets, the catalysts driving stablecoin adoption and the unique dynamics of the Asian market. In addition, he described Agora’s approach to building blockchain-based payment infrastructure and the importance of what he calls “credible neutrality.” What follows is a lightly edited transcript of our discussion.
What’s been your journey from a technology investor to starting Agora? What sparked your interest in blockchain-based payments?
I started my career investing at the private equity firm JMI Equity and knew I wanted to be an investor from an early age. I was working at a hedge fund in 2016 when I first got exposed to Bitcoin. The concept of Bitcoin as “digital gold” resonated with me, and I shared many beliefs with early Bitcoiners. That’s when I first got involved, but I continued to work as a tech investor for many years.
During the DeFi summer of 2020, I was drawn back into crypto as applications like Uniswap and Aave made the idea of an open financial system tangible. For many globally, these tools were better than their existing financial systems. Blockchain enables people to save and earn money in ways that weren’t possible before, and it felt like the start of a revolution. So, about a year ago, I left VC firm General Catalyst to start Agora.
Read the full interview here.
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