Month: March 2025

Bitcoin Magazine

Bitcoin Is A Strategic Asset, Not XRP

A new proposal submitted to the U.S. Securities and Exchange Commission’s (SEC) newly-established Crypto Task Force by a Maximilian Staudinger makes the case for XRP as a “strategic financial asset” for the United States (using some very questionable math and logic).

I’m here to tell you that XRP is not a strategic asset and that the logic in this proposal is dubious at best.

In the proposal, Staudinger states that $5 trillion is locked up in U.S. Nostro accounts (accounts that banks use for cross-border payments). And he claims that if certain regulatory conditions were created — including the SEC classifying XRP as a payment network, the U.S. Department of Justice (DoJ) providing legal clearance for banks to use XRP, and the Federal Reserve mandating that banks use XRP as a liquidity solution — then 30% of this capital ($1.5 trillion) would be freed up for the U.S. government to buy 25 million bitcoin at $60,000 per bitcoin.

So, let’s break down why this makes little sense.

First, Nostro accounts are simply bank accounts that U.S. banks hold in foreign countries. I’m not sure what sort of logic includes these domestic banks turning over the U.S. dollars that XRP would theoretically replace to the Federal government so that these dollars could then be used to acquire bitcoin on behalf of the government.

Second, the proposal doesn’t offer details on how these domestic banks would obtain the XRP that would replace the dollars. It only seems logical that they’d have to purchase the XRP, leading to XRP absorbing this $1.5 trillion, not bitcoin. Even if Ripple, XRP’s issuer, wanted to simply give these banks XRP to use, this still wouldn’t work, as it only holds about $100 billion in XRP — far short of $1.5 trillion.

Third, even if bitcoin’s price were to dip to $60,000, the price would begin increasing immediately as the U.S. government began purchasing the 25 million bitcoin.

Lastly, there’s a hard cap of 21 million bitcoin (and approximately 4 million have been lost), which is a well-known fact in the Bitcoin or crypto space. Therefore, it’s quite silly to suggest that the U.S. government could buy 25 million bitcoin. If the author were even a half-serious person, he might have suggested that the government buy 15 million bitcoin at $100,000 per bitcoin (though the math still wouldn’t work out).

Given how faulty the logic behind this proposal is, it’s difficult to consider XRP a strategic asset. Plus, why would the U.S. government do so when two thirds of the supply is still in the hands of the organization that issued the asset? It doesn’t make much sense.

Bitcoin, on the other hand, is a globally distributed asset that many around the world use as both money and a store of value. Plus, the Bitcoin network is governed by tens of thousands of nodes and is virtually impenetrable, thanks to the approximately 0.4% of the world’s energy that protects it. (The XRP network is governed by 828 nodes and isn’t protected by any amount of energy.) Theses factors make bitcoin a logical reserve asset, which is how the U.S. government now officially classifies it.

So, hopefully, the SEC already understands what I’ve outlined in this piece and doesn’t spend much time even considering Mr. Staudinger’s proposal.

This article is a Take. Opinions expressed are entirely the author’s and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

This post Bitcoin Is A Strategic Asset, Not XRP first appeared on Bitcoin Magazine and is written by Frank Corva.

Bitcoin Magazine

Kentucky Senate Passes Bill Protecting Bitcoin Self-Custody Rights

Yesterday evening, the Kentucky Senate unanimously passed a bill aimed at protecting Bitcoin self-custody rights and digital asset mining operations. With a decisive 37-0 vote, the legislation, titled AN ACT relating to blockchain digital assets (HB 701), now moves to the Governor’s desk for final approval.

Sponsored by Representatives Adam Bowling and T.J. Roberts, the bill affirms the right of individuals to self-custody digital assets through self-hosted wallets. Additionally, it prevents local zoning laws from discriminating against digital asset mining businesses, ensuring that Bitcoin miners can operate freely within the state.

The bill outlines several key provisions, including:

Protection for Bitcoin self-custody: Individuals have the legal right to use and store digital assets in self-hosted wallets.

Prohibition of discriminatory zoning laws: Local governments cannot impose zoning changes that unfairly target digital asset mining businesses.

Exemptions from money transmitter licensing: Home Bitcoin miners and digital asset mining businesses are exempt from Kentucky’s money transmitter requirements.

Clarification of securities laws: Digital asset mining and staking as a service are explicitly not classified as securities under Kentucky law.

After passing through the Kentucky House with a 91-0 vote on February 28, 2025, the bill moved swiftly through the Senate. The March 13 vote saw full bipartisan support, with 37 senators voting in favor, zero opposed, and one not voting.

The legislation now awaits the Governor’s signature, which would officially enshrine Bitcoin self-custody protections and digital asset mining rights into Kentucky law. If signed, Kentucky will become one of the more Bitcoin-friendly states in the country, setting a precedent for other states to follow.

This post Kentucky Senate Passes Bill Protecting Bitcoin Self-Custody Rights first appeared on Bitcoin Magazine and is written by Nik.

Bitcoin Magazine

This Rare Bitcoin Buy Signal Could Ignite Next BTC Rally

Bitcoin has been struggling with lower lows in recent weeks, leaving many investors questioning whether the asset is on the brink of a major bear cycle. However, a rare data point tied to the US Dollar Strength Index (DXY) suggests that a significant shift in market dynamics may be imminent. This bitcoin buy signal, which has only appeared three times in BTC’s history, could point to a bullish reversal despite the current bearish sentiment.

For a more in-depth look into this topic, check out a recent YouTube video here:
Bitcoin: This Had Only Ever Happened 3x Before

BTC vs DXY Inverse Relationship

Bitcoin’s price action has long been inversely correlated with the US Dollar Strength Index (DXY). Historically, when the DXY strengthens, BTC tends to struggle, while a declining DXY often creates favorable macroeconomic conditions for Bitcoin price appreciation.

Figure 1: $BTC & DXY have historically had an inverse correlation. View Live Chart

Despite this historically bullish influence, Bitcoin’s price has continued to retreat, recently dropping from over $100,000 to below $80,000. However, past occurrences of this rare DXY retracement suggest that a delayed but meaningful BTC rebound could still be in play.

Bitcoin Buy Signal Historic Occurrences

Currently, the DXY has been in a sharp decline, a decrease of over 3.4% within a single week, a rate of change that has only been observed three times in Bitcoin’s entire trading history.

Figure 2: There have only been three previous instances of such rapid DXY decline.

To understand the potential impact of this DXY signal, let’s examine the three prior instances when this sharp decline in the US dollar strength index occurred:

2015 Post-Bear Market Bottom

The first occurrence was after BTC’s price had bottomed out in 2015. Following a period of sideways consolidation, BTC’s price experienced a significant upward surge, gaining over 200% within months.

Post-COVID Market Crash

The second instance occurred in early 2020, following the sharp market collapse triggered by the COVID-19 pandemic. Similar to the 2015 case, BTC initially experienced choppy price action before a rapid upward trend emerged, culminating in a multi-month rally.

2022 Bear Market Recovery

The most recent instance happened at the end of the 2022 bear market. After an initial period of price stabilization, BTC followed with a sustained recovery, climbing to substantially higher prices and kicking off the current bull cycle over the following months.

In each case, the sharp decline in the DXY was followed by a consolidation phase before BTC embarked on a significant bullish run. Overlaying the price action of these three instances onto our current price action we get an idea of how things could play out in the near future.

Figure 3: How price action could play out if any of the three previous occurrences are mirrored.

Equity Markets Correlation

Interestingly, this pattern isn’t limited to Bitcoin. A similar relationship can be observed in traditional markets, particularly in the Nasdaq and the S&P 500. When the DXY retraces sharply, equity markets have historically outperformed their baseline returns.

Figure 4: The same outperformance can be observed in equity markets.

The all-time average 30-day return for the Nasdaq following a similar DXY decline stands at 4.29%, well above the standard 30-day return of 1.91%. Extending the window to 60 days, the Nasdaq’s average return increases to nearly 7%, nearly doubling the typical performance of 3.88%. This correlation suggests that Bitcoin’s performance following a sharp DXY retracement aligns with historical broader market trends, reinforcing the argument for a delayed but inevitable positive response.

Conclusion

The current decline in the US Dollar Strength Index represents a rare and historically bullish Bitcoin buy signal. Although BTC’s immediate price action remains weak, historical precedents suggest that a period of consolidation will likely be followed by a significant rally. Especially when reinforced by observing the same response in indexes such as the Nasdaq and S&P 500, the broader macroeconomic environment is setting up favorably for BTC.

Explore live data, charts, indicators, and in-depth research to stay ahead of Bitcoin’s price action at Bitcoin Magazine Pro.

Disclaimer: This article is for informational purposes only and should not be considered financial advice. Always do your own research before making any investment decisions.

This post This Rare Bitcoin Buy Signal Could Ignite Next BTC Rally first appeared on Bitcoin Magazine and is written by Matt Crosby.

Bitcoin Magazine

Russia Is Using Bitcoin and Crypto For Its Oil Trades with China and India

Amid ongoing sanctions over the war in Ukraine, Russia has turned to bitcoin and other cryptocurrencies to facilitate some of its oil trade with major buyers China and India.

According to a Reuters report, Russian oil companies and traders increasingly conduct transactions in bitcoin and crypto, allowing them to circumvent restrictions from Western nations. Sources say monthly trade volumes are already in the tens of millions of dollars.

The mechanism involves Chinese or Indian buyers purchasing oil and depositing yuan or rupees into an offshore account owned by a middleman company. The middleman then converts the fiat currency into crypto and transfers it to an account in Russia, where it is exchanged into rubles.

While crypto-based oil payments are still a fraction of Russia’s $192 billion total oil trade, the practice is growing as sanctions bite. The trend highlights the utility of bitcoin and crypto in enabling transaction settlement for sanctioned nations. Iran and Venezuela have adopted similar crypto strategies. Bitcoin and crypto’s censorship resistance allows value transfer beyond the reach of sanctions.

In late 2024, Russia’s finance minister publicly endorsed using crypto in foreign trade. The Kremlin sees bitcoin and crypto as one of several effective strategies to overcome financial penalties imposed over the invasion of Ukraine. The Bank of Russia also recently proposed legalizing crypto investments for wealthy citizens.

However, Russia’s oil trade still relies primarily on fiat currencies. President Donald Trump’s administration is debating whether to ease some restrictions to improve relations with Moscow.

With the Ukraine conflict still unresolved, Russia’s pivot toward leveraging bitcoin and decentralized technologies appears to aim to reduce its reliance on traditional finance and dollar settlements. Other countries under U.S. sanctions are likely to be monitored closely.

This post Russia Is Using Bitcoin and Crypto For Its Oil Trades with China and India first appeared on Bitcoin Magazine and is written by Vivek Sen Bitcoin.