Category: Crypto

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With his return to the presidency, Donald Trump has positioned himself as a key figure in the Bitcoin conversation. His keynote at Bitcoin 2024 laid out ambitious plans for integrating Bitcoin into the U.S. economy, making him the first U.S. president to openly champion the cryptocurrency in such a way. As his second term begins, the Bitcoin community is eager to see how his promises will evolve into concrete policies, with hopes of a friendlier regulatory environment and a more secure, innovative financial system.

The Promises

Trump’s speech at Bitcoin 2024 highlighted a series of initiatives aimed at embracing Bitcoin and blockchain technology:

Ending the “anti-crypto stance” from previous administrations, with a commitment to revising the approach to regulation.Establishing a Presidential Crypto Advisory Council to shape the national strategy for Bitcoin and blockchain innovation.Rejecting the idea of a Central Bank Digital Currency (CBDC).Securing and holding government-owned bitcoin, with plans to create a strategic stockpile.Freeing Ross Ulbricht, the founder of the Silk Road online marketplace, who has been imprisoned since 2013.The removal of SEC Chairman Gary Gensler.

While Trump’s commitment to Bitcoin is undeniably encouraging for the community, translating ambitious promises into effective policy presents a challenging path forward. His call for removing SEC Chairman Gary Gensler resonated with Bitcoin advocates, many of whom blamed Gensler for restrictive policies. Although it’s unclear if Trump’s influence played a role, Gensler’s announcement of his November departure signals a changing regulatory tide. Trump’s proposal to establish a Crypto Advisory Council holds potential, but its success will depend on bipartisan cooperation and a clear, actionable mandate. Without these elements, it risks becoming a hollow political gesture. Additionally, his opposition to a Central Bank Digital Currency (CBDC) aligns well with privacy advocates and decentralization proponents, and there does seem to be support from within the Republican party for this policy. In regards to Ross Ulbricht, President Trump has many avenues to explore, from a commuted sentence to a presidential pardon. Whether it happens “day one” or within the early days of Trump’s second term, Ulbricht’s freedom is on the horizon.

As with any sweeping political vision, enthusiasm must be tempered with pragmatism. Turning promises into actionable policies takes time, especially within the labyrinth of established financial systems. Regulatory reforms move slowly, often hindered by entrenched interests and complex legislative processes. Nonetheless, Trump’s vocal advocacy of Bitcoin marks a cultural shift in American politics. Even if not every initiative reaches full fruition, his presidency could significantly alter public perceptions and policy discourse surrounding Bitcoin, embedding the cryptocurrency deeper into the national conversation.

Should political inertia or opposition delay progress, the Bitcoin community has tools to remain proactive and engaged. Active participation in shaping policy will be key—advocating for legislative clarity and innovation-friendly frameworks can help ensure Bitcoin’s potential is realized. Keeping a vigilant eye on regulatory shifts, including how Trump’s administration addresses existing SEC cases and cryptocurrency classifications, will also be crucial. Flexibility and readiness to accept incremental progress could yield meaningful wins, especially in resisting CBDCs and strengthening the government’s bitcoin holdings strategy.

Ultimately, Trump’s pro-Bitcoin stance represents a historic pivot toward integrating Bitcoin into U.S. governance. While challenges and delays are inevitable, the presence of a Bitcoin advocate in the White House offers unprecedented opportunities. The next few years will test whether America can truly become a beacon for Bitcoin innovation or whether political realities will slow the revolution. Either way, Bitcoin now has a powerful ally at the highest level of government—a hopeful signal for its future trajectory in the United States and beyond.

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

Looking to cement Wyoming’s position at the forefront of Bitcoin innovation, freshman Representative Jacob Wasserburger (@jacob4wyoming) has introduced the “State Funds-Investment in Bitcoin Act” (HB0201), a bill aimed at creating a Bitcoin Strategic Reserve for the state. Following the footsteps of groundbreaking Bitcoin legislation previously passed in Wyoming, this bill seeks to secure the state’s financial future while paving the way for broader national adoption.

Wyoming: A Tradition of Innovation

“Wyoming has always been a pioneer—from women’s suffrage, to the first national park; from the invention of the LLC, to the frontier of digital assets,” Wasserburger remarked when introducing the bill. “HB0201 ensures that Wyoming remains the leading state for legislative innovation in Bitcoin, while providing our citizens with the long-term benefits of sound money and financial sovereignty.”

HB0201 would allow the allocation of a portion of Wyoming’s state funds into Bitcoin as part of a diversified investment strategy. By doing so, the state aims to capitalize on Bitcoin’s long-term appreciation potential while promoting its principles of decentralization and monetary resilience. The initiative aligns with Wyoming’s established reputation as the most Bitcoin-friendly jurisdiction in the United States, a legacy cultivated by laws such as the Wyoming Special Purpose Depository Institution (SPDI) framework, and includes more than two dozen other laws and regulations passed or promulgated since 2018.

National Collaboration: Supporting Senator Lummis and President-elect Trump

Representative Wasserburger’s ambitions extend beyond Wyoming. The freshman legislator emphasized the importance of supporting efforts by Wyoming Senator Cynthia Lummis and President-elect Donald Trump to establish a United States Strategic Bitcoin Reserve.

“As a proud supporter of Senator Lummis and President-elect Trump’s efforts, I believe Wyoming can play a vital role in this national initiative,” Wasserburger stated. “Building a strategic Bitcoin reserve isn’t just about securing financial strength—it’s about ensuring that both Wyoming and America remain leaders on the global stage.”

This collaboration underscores the growing recognition of Bitcoin as a geopolitical asset. Advocates argue that holding Bitcoin as a reserve asset could hedge against inflation, protect against economic instability, and strengthen the United States’ position in an increasingly digital global economy.

The Economic Case for a Bitcoin Strategic Reserve

At the heart of HB0201 lies an economic argument as compelling as it is revolutionary. Bitcoin, often described as “digital gold,” has demonstrated remarkable resilience and growth over the past decade. For Wyoming, a state that has consistently championed financial independence and innovation, the potential upside of Bitcoin aligns with its long-term vision.

“We can’t afford to sit on the sidelines while other states, like Texas, Pennsylvania, North Dakota, New Hampshire and others move forward with their own Bitcoin reserve bills,” said Wasserburger. “Passing HB0201 quickly ensures that Wyoming remains the leader among the states, setting the standard for financial innovation and sovereignty. With many other states likely to follow suit, now is the time to solidify our position as the trailblazer in the digital economy and ensure Wyoming stays ahead of the pack.”

“Wyoming’s economic future depends on embracing innovation while staying true to our principles of individual liberty and financial independence,” said Wasserburger. “Investing in Bitcoin is not just smart policy—it’s Wyoming’s way of saying we’re ready for the future.”

In a time when states are grappling with economic uncertainty and inflationary pressures, Bitcoin’s fixed supply and decentralized nature offer a stark contrast to traditional financial systems. By adopting HB0201, Wyoming positions itself as a leader not just in Bitcoin regulation, but in integrating Bitcoin into the financial apparatus of state governance.

This is a guest post by Colin Crossman. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

The Bitcoin MVRV Z-Score has historically been one of the most effective tools for identifying market cycle tops and bottoms in Bitcoin. Today, we’re excited to share an enhancement to this metric that makes it even more insightful for today’s dynamic market conditions.

What Is the Bitcoin MVRV Z-Score?

The MVRV Z-Score is derived by analyzing the ratio between Bitcoin’s realized cap (the average acquisition cost of all Bitcoin in circulation) and its market cap (current network valuation). By standardizing this ratio using Bitcoin’s price volatility (measured as the standard deviation), the Z-Score highlights periods of overvaluation or undervaluation relative to historical norms.

Figure 1: MVRV Z-Score effectiveness may be reduced due to diminishing volatility.

View Live Chart 🔍

Peaks in the red zone signal overvaluation, suggesting optimal profit-taking opportunities. Bottoms in the green zone indicate undervaluation, often marking strong accumulation opportunities. Historically, this metric has been remarkably accurate in pinpointing major market cycle extremes.

While powerful, the traditional MVRV Z-Score has its limitations. In past cycles, the Z-Score reached values of 9–10 during market tops. However, in the last cycle, the score only reached around 7. This may be due to the rounded double-peak cycle instead of the sharp blow-off top we usually experience. Regardless, there’s the necessity to factor in the evolving market dynamics, with increasing institutional involvement and changing investor behavior.

The Enhanced MVRV Z-Score

The MVRV Z-Score standardizes the raw MVRV data using Bitcoin’s entire price history, which includes the extreme volatility of its early years. As Bitcoin matures, these early data points may distort its relevance to current market conditions. To address these challenges, we’ve developed the MVRV Z-Score 2YR Rolling. Instead of using Bitcoin’s entire price history, this version calculates volatility based only on the previous two years of data.

Figure 2: MVRV Z-Score 2YR Rolling accounts for reduced market volatility.

View Live Chart 🔍

This approach better accounts for Bitcoin’s growing market cap and shifting dynamics and ensures the metric adapts to more recent trends, offering greater accuracy for contemporary market analysis. It still excels at identifying market cycle tops and bottoms but adapts to modern conditions. In the last cycle, this version captured a higher peak value than the traditional Z-Score, aligning more closely with 2017’s price action. On the downside, it continues to identify strong accumulation zones with high precision.

Raw MVRV Ratio

Another complementary approach involves analyzing the MVRV ratio without standardizing for volatility. By doing so, we can see the previous cycle’s MVRV ratio peaked at 3.96, compared to 4.72 in the cycle before that. These values suggest less deviation, potentially offering a more stable framework for projecting future price targets.

Figure 3: MVRV data can help to forecast potential price targets.

View Live Chart 🔍

Assuming a realized price of $60,000 (factoring in the current projected increase over the next six months) and an MVRV ratio of 3.96, a potential peak price could be close to $240,000. If diminishing returns reduce the ratio to 3.0, the peak price might still reach $180,000.

Conclusion

While the MVRV Z-Score is still one of the most effective tools for timing market cycle peaks and bottoms, we need to be prepared for this metric potentially not reaching similar highs as prior cycles. By adapting this data to better factor in the changing market dynamics of Bitcoin, we can account for reduced volatility as BTC grows.

For a more in-depth look into this topic, check out a recent YouTube video here:
Improving The Bitcoin MVRV Z-Score

For more detailed Bitcoin analysis and to access advanced features like live charts, personalized indicator alerts, and in-depth industry reports, check out 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.

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I was recently a guest on the Mr. M podcast, where the host, Maurizio (Mr. M), and I discussed many of the realities of investing in bitcoin that often aren’t discussed with enough nuance.

For context, Maurizio invited me onto the show because he wanted to discuss a Take I wrote last week entitled “Don’t Buy The Bitcoin Dip,” in which I shared that we’ve already been in a bitcoin bull market for over two years and that now likely isn’t the best time to make sizable bitcoin purchases. (Please note that, in the article, I didn’t encourage anyone to sell their bitcoin, nor did I suggest that they stop dollar-cost averaging into the asset.)

We discussed the piece and also touched on some other dynamics involved with investing in bitcoin that don’t often get brought up. So, I figured I’d share some bullet points from the conversation here as a teaser for the episode.

When investing in bitcoin, you can:

Sell some if you need some cash, and it’s better to do this while bitcoin’s price is highNot go all in on bitcoin; having a cash buffer can be psychologically beneficial, as bitcoin is a volatile assetConsider timing when making larger bitcoin purchases; bitcoin’s price goes through boom and bust cycles, and it’s best to buy during bear markets

I share these points because, oftentimes, louder voices in the Bitcoin space broadcast messages like “Buy the dip” or “Never selling!” (my favorite example of this is the episode of What Bitcoin Did entitled “Buy the Fucking Dip” that was published at the near the tippy top of the 2021 bull market), prompting those new to the space or who might benefit from selling or spending some bitcoin during a bull market not to.

Had I not sold some bitcoin during the latter part of the previous bull run, I wouldn’t have had the cash buffer that made it easier for me to quit my previous job, which was making me miserable, so that I had some financial breathing room while looking for work in the Bitcoin space. And here I am now, writing articles for Bitcoin Magazine for a living in part because I sold some of my bitcoin.

So, please understand that Bitcoin is a tool that can be used in many different ways. Examine your life circumstances, and think for yourself when it comes to how to use your bitcoin. Don’t just listen to the devout HODLers who may make you feel like less of a Bitcoiner for doing what’s best for you.

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

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According to a press release sent to Bitcoin Magazine, an Office of California Assemblymember, Republican Phillip Chen, has appointed Proof of Workforce, a Santa Monica-based non-profit helping workers, unions, pensions, and municipalities with education-based Bitcoin adoption, to work on a variety of Bitcoin related initiatives and help with drafting an official bill for an upcoming legislative session.

“As to where and how Bitcoin and digital assets get into the trajectory of California, much is undetermined,” said Chen. “What is certain is that this industry is growing in adoption everyday, with Bitcoin serving as a global network and asset, representing 2 trillion dollars in value. Therefore, it’s important we take a meaningful look into its role in our great state of California.”

Proof of Workforce, led by its founder Dom Bei, will be advising Chen’s policy team, working on education and community engagement, and researching how Bitcoin can support and rebuild California’s infrastructure and communities.

“Bitcoin’s Genesis story has deep roots in California,” commented Bei. “A huge part of that Genesis Story is an innovative network, designed to protect the time, energy, and value of everyday, working people. Bitcoin isn’t partisan, it’s uniquely Californian.”

This isn’t Proof of Workforce’s first time helping onboard governments in California to Bitcoin. Last summer, Proof of Workforce partnered with the City of Santa Monica to open an official Bitcoin office. Since opening, the office has seen “an overwhelming amount of interest”, according to the city’s Mayor Lana Negrete. Santa Monica’s City Manager has also stated that other cities have reached out to learn more about their Bitcoin endeavors.

JUST IN: 🇺🇸 Santa Monica City Manager says “several other cities have reached out to learn more” about their official #Bitcoin Office 👀

“The Bitcoin Office has seen significant interest from the public” 🚀pic.twitter.com/ortfFTCx1S

— Bitcoin Magazine (@BitcoinMagazine) October 9, 2024

Mass adoption starts with initiatives like this. Bitcoin adoption within California’s government is beginning and with the United States embracing Bitcoin under President Trump, it is very likely that the adoption of this asset within the state government will continue over the coming years.

Over the years I’ve watched Dom Bei and Proof of Workforce onboard Careers in Government, firefighter unions in America, El Salvador, and Africa, workers, and more to Bitcoin. They’re doing it right by helping these organizations buy and hold their own bitcoin keys, making sure they’re all properly educated on not just bitcoin the asset but Bitcoin the network as well. One by one, Proof of Workforce is making real change that impacts people’s daily lives.

If you are not following Bei and Proof of Workforce on X, you should be. After talking with Dom personally, they are working on a lot of exciting initiatives that you’ll want to hear about — stay tuned.

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

As the Bitcoin market steps into 2025, investors are keenly analyzing seasonal trends and historical data to predict what February might hold. With Bitcoin’s cyclical nature often tied to its halving events, historical insights provide a valuable roadmap for navigating future performance. By examining historical data—including Bitcoin’s average monthly returns and its post-halving February performance—we aim to provide a clear picture of what February 2025 might look like.

Historical average monthly performance of Bitcoin. Monthly data set is from December 2010 to latest monthly close. Source: Bitcoin Magazine Pro

Understanding Bitcoin’s Seasonality

The first chart, “Bitcoin Seasonality,” highlights average monthly returns from 2010 to the latest monthly close. The data underscores Bitcoin’s best-performing months and its cyclical tendencies. February has historically shown an average return of 13.62%, ranking it as one of the stronger months for Bitcoin performance.

Notably, November stands out with the highest average return at 43.74%, followed by October at 19.46%. Conversely, September has historically been the weakest month with an average return of -1.83%. February’s solid average places it in the upper tier of Bitcoin’s seasonality, offering investors hope for positive returns in early 2025.

Bitcoin percentage monthly returns over the past ten years. Source: Bitcoin Magazine Pro

Historical Performance of February in Post-Halving Years

A deeper dive into Bitcoin’s historical February returns reveals fascinating insights for years that follow a halving event. Bitcoin’s halving mechanism—which occurs roughly every four years—reduces block rewards by half, creating a supply shock that has historically driven price increases. February’s performance in these post-halving years has consistently been positive:

2013 (Post-2012 Halving): 62.71%2017 (Post-2016 Halving): 22.71%2021 (Post-2020 Halving): 36.80%

The average return across these three years is an impressive 40.74%. Each of these Februarys reflects the bullish momentum that often follows halving events, driven by reduced Bitcoin supply issuance and increased market demand.

Related: We’re Repeating The 2017 Bitcoin Bull Cycle

January 2025’s Performance Sets the Stage

While February 2025 is yet to unfold, the year began with a modest 7.28% return to date in January, as shown in the “Monthly Returns Heatmap.” January’s positive performance hints at a continuation of bullish sentiment in the early months of 2025, aligning with historical post-halving patterns. If February 2025 follows the trajectory of past post-halving years, it could see returns in the range of 22% to 63%, with an average expectation around 40%.

What Drives February’s Strong Post-Halving Performance?

Several factors contribute to February’s historical strength in post-halving years:

Supply Shock: The halving reduces new Bitcoin supply entering circulation, increasing scarcity and driving price appreciation.Market Momentum: Investors often respond to the halving event with increased enthusiasm, pushing prices higher in the months following the event.Institutional Interest: In recent cycles, institutional adoption has accelerated post-halving, adding significant capital inflows to the market.

Key Takeaways for February 2025

Investors should approach February 2025 with cautious optimism. Historical and seasonal data suggest the month has strong potential for positive returns, particularly in the context of Bitcoin’s post-halving cycles. With an average return of 40.74% in past post-halving Februarys, investors might expect similar performance this year, barring any significant macroeconomic or regulatory headwinds.

Conclusion

Bitcoin’s history provides a valuable lens through which to view its future performance. February 2025 is shaping up to be another positive month, driven by the same post-halving dynamics that have historically fueled impressive gains. Combining historical data performance with a positive regulatory environment, the incoming pro-Bitcoin administration, and the news that The Financial Accounting Standards Board (FASB) has issued a new guideline (ASU 2023-08) fundamentally changing how Bitcoin is accounted for (Why Hundreds of Companies Will Buy Bitcoin in 2025), 2025 is shaping up to be a transformative year for Bitcoin. As always, investors should combine these insights with broader market analysis and remain prepared for Bitcoin’s inherent volatility.

Related: Why Hundreds of Companies Will Buy Bitcoin in 2025

By leveraging the lessons of history and the patterns of seasonality, Bitcoin investors can make informed decisions as the market navigates this pivotal year.

To explore live data and stay informed on the latest analysis, visit bitcoinmagazinepro.com.

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.

Earlier today, Coinbase announced the launch of “Bitcoin-Backed Loans” using Base, its native blockchain. But there’s one problem. (Actually, two.)

These loans are not backed by Bitcoin, nor are they even on the Bitcoin blockchain.

It’s disappointing that, in 2025, companies are still willingly omitting key details to mislead Bitcoin holders into giving up custody of their coins.

Here’s the truth: these loans are collateralized by cbBTC, Coinbase’s Bitcoin-wrapped product designed to compete with wBTC and tBTC. This is not Bitcoin. In fact, cbBTC is arguably the most centralized of these “wrapped” BTC tokens. To understand the trust assumptions associated with wrapped BTC, I recommend this excellent post by the Bitcoin Layers team: Analyzing tBTC Against wBTC and cbBTC.

Here’s the TL;DR:

“The BTC backing the cbBTC token is held in reserve wallets managed by Coinbase, a US-based centralized custodial provider. Coinbase holds funds backing cbBTC in cold storage wallets across a number of geographically distributed locations and additionally has insurance on funds they custody.”

Furthermore, instead of issuing these loans on a blockchain even remotely related to Bitcoin (such as Bitcoin sidechains or Bitcoin L2s), Coinbase is issuing them through Morpho Labs, a DeFi platform best described as an AAVE competitor. While Morpho is a well-established platform—and I don’t doubt its security—it has no connection to Bitcoin.

I, for one, look forward to seeing actual Bitcoin-backed loans issued on the Bitcoin network itself. Many L2 teams are working hard to make this a reality, striving to minimize trust assumptions—or even eliminate the need for bridging altogether (bullish!).

Why do we need native Bitcoin-backed loans in the first place? Consider this: many Bitcoiners today face stringent tax regulations that impose hefty liabilities on long-term holders who sell their Bitcoin to fund significant purchases like a house or a car. Taking out a loan backed by BTC allows individuals to avoid triggering these tax events.

Moreover, most Bitcoiners are confident that Bitcoin’s price will be significantly higher in the future than it is today. So why would anyone sell an asset with such promising long-term potential? Bitcoin-backed loans enable holders to retain exposure to Bitcoin’s upside while accessing the liquidity needed to meet life’s financial demands.

In today’s market, the options for Bitcoin-backed lending are limited. You can either rely on centralized companies (like the reputable team at Unchained) or turn to “DeFi” protocols, which are often centralized themselves and, in some cases, riskier than centralized alternatives like Unchained. However, there is currently no truly Bitcoin-native solution—no option for Bitcoiners to maintain custody of their coins while accessing loans.

Some companies, like Lava.xyz, are beginning to address this gap. However, their market share remains a small fraction of the volumes handled by existing DeFi platforms. (Keep an eye on Lava—they’re poised to make waves in 2025!)

One quote from the original announcement stood out to me:

“The integration of Bitcoin-backed loans on Coinbase is ‘TradFi in the front, DeFi in the back,’” said Max Branzburg, Coinbase’s vice president of product, in a statement to The Block.

Let’s call it what it really is: centralized in the front, and centralized in the back.

Legendary Nicolas Dorier’s quote

It’s time to leave these misleading offerings behind and bring true Bitcoin Finance (BTCfi) to users—not just marketing buzzwords and half-truths.

Instead of saying: Bitcoin backed on-chain loans let’s say: multisig-backed derivatives loans on a centralized chain.

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

Articles I write may discuss topics or companies that are part of my firm’s investment portfolio (UTXO Management). The views expressed are solely my own and do not represent the opinions of my employer or its affiliates. I’m receiving no financial compensation for these takes. Readers should not consider this content as financial advice or an endorsement of any particular company or investment. Always do your own research before making financial decisions.

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Earlier this morning, the U.S. government announced via a court document that stolen bitcoin from the Bitfinex hack in 2016 should be returned to the exchange in-kind. This bitcoin, as seen publicly on the blockchain via Arkham Intelligence, totals 94,643 BTC currently worth $9.4 billion at the time of writing.

Just five days before pro-Bitcoin Donald Trump is sworn into office for a second term, the U.S. government seems to be on the verge of sending a large chunk of U.S. held bitcoin back to Bitfinex. Last summer, at The Bitcoin 2024 Conference in Nashville, Donald Trump pledged to create a national strategic bitcoin stockpile using the bitcoin already held by the government obtained from hacks, seizures, etc. According to Arkham Intelligence data, the U.S. currently holds 198,109 bitcoin worth over $20.1 billion. If these coins are to be sent back to Bitfinex — that would cut Trump’s promised strategic reserve by 47.77% down to 103,466 BTC.

BREAKING: 🇺🇸 DONALD TRUMP PLEDGES TO NEVER SELL #BITCOIN AND HOLD IT AS A STRATEGIC RESERVE ASSET IF ELECTED PRESIDENT pic.twitter.com/bbPRxlZfGZ

— Bitcoin Magazine (@BitcoinMagazine) July 27, 2024

It makes me bullish that if the government is going to be acquiring mass amounts of bitcoin in the near future and over the long term, then I would want them to start from as close to 0 as possible, because that would require them to market buy more and push the price higher. The bitcoin should be returned in-kind, the court document stated, meaning those coins will not need to be sold for dollars, relieving any downward pressure on bitcoin’s price from that would be sale. Plus bitcoin getting returned to its rightful owner sounds like the right thing to do, and I’m sure Bitfinex will be thrilled to get their coins back.

However, if the U.S. government is going to be mass buying bitcoin for a strategic reserve, then Wyoming Senator Cynthia Lummis’ proposed legislation for that would need to be signed into law. As it stands from just Trump’s promise, he would just initially keep the seized bitcoin held on the government balance sheet as the strategic reserve, with the potential of acquiring more BTC by other methods, but made no hard promise on that. Senator Lummis’ proposed bill would see the United States buy 200,000 bitcoin per year, for 5 years, until it has accumulated a total of 1,000,000 bitcoin.

JUST IN: US Senator Cynthia Lummis outlines Strategic #Bitcoin Reserve plan: “purchase 200k BTC per year for five years. 1m BTC total.” 🇺🇸 pic.twitter.com/57ofJhc8X0

— Bitcoin Magazine (@BitcoinMagazine) November 21, 2024

However this all plays out, the strategic bitcoin reserve will be bullish for the country and for Bitcoin in general. Obviously, Senator Lummis’ bill would be the far more bullish of the potential outcomes, because it would market buy back all the bitcoin it plans to give back to Bitfinex, and then 905,357 BTC more. That amount of sheer buying demand would most likely send the price of bitcoin skyrocketing, especially as other governments around the world start buying as well to keep up with our government’s purchases.

Even if Lummis’ bill does not come to fruition, and we only get the reserve that Trump promised, I believe that is still enough to make other governments FOMO into creating their own reserve as well.

There is only about 450 new bitcoin getting mined every day, and with institutional bitcoin purchases already outpacing the new supply of BTC mined this year, things could get really crazy, really fast. Buckle up.

JUST IN: Corporate demand for #Bitcoin is already outpacing new bitcoin supply this year 👀

Bullish 🚀 pic.twitter.com/PyKk9Aci93

— Bitcoin Magazine (@BitcoinMagazine) January 13, 2025

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

Some miners at OCEAN have started making use of the Coin Age Priority algorithm during block template construction using DATUM. Originally, Bitcoin Core originally selected transactions to include in blocks based on what they had seen first in their mempool. This logic was eventually replaced by prioritizing older coins, i.e. that had been sitting around unspent longer, over other coins. This was eventually only applied to a small portion of the blockspace, and then eventually done away with entirely around the time of Segwit. It’s still maintained in Bitcoin Knots.

I can only speculate as to the motives of the miners doing this, but given OCEAN’s rhetoric I can guess that it has something to do with prioritizing “financial” transactions over others. Even if not, even if it is purely to help small value UTXO owners, it is still every bit as irrational.

You can partition blockspace as a miner however you want, and prioritize ordering of transactions however you wish within those partitions, but it does not change the fact that blockspace is a fungible good being valued on an open market. If criteria other than the feerate are used to decide which transactions to include, you will leave money on the table. The only situation where that would not be true is one where those criteria were 1:1 identical to deciding based on feerate, which would be a meaningless criteria.

Creating a subsection of blockspace selected for by other criteria ultimately accomplishes two things: 1) leaving money on the table as a miner, as definitionally any meaningful non-feerate criteria results in collecting less fees, and 2) create a bucket of blockspace submitted to competitive “fee” pressures according to whatever different criteria is used, without any of that pressure creating direct revenue increases for miners using this new criteria.

The new subsection of blockspace doesn’t ultimately reduce fee pressure, it simply leaves them making less money and users taking advantage of this new transaction selection criteria subjected to different competitive pressures miners do not directly benefit from.

You can’t hide from the reality that blockspace is a fungible good priced on the open market. You can accept that, or you can lose money. The only alternative is to futilely try to censor classes of transactions you don’t like, and if you happen to succeed, you destroy a core property of Bitcoin in the process.

Mining staying decentralized, widely distributed with many small operators, is critical for Bitcoin’s censorship resistance. It’s a shame to see signs like this of such smaller miners being economically irrational, given that it has huge implications for their success long term.

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

Matt Hougan, Chief Investment Officer (CIO) at Bitwise, has issued a bold prediction: hundreds of companies will buy Bitcoin as a treasury asset over the next 12 to 18 months. The shift, which Hougan describes as an “overlooked megatrend,” has the potential to significantly influence Bitcoin’s market trajectory.

MicroStrategy: The Torchbearer of Corporate Bitcoin Adoption

MicroStrategy, led by Michael Saylor, has become synonymous with corporate Bitcoin adoption. Though ranked only 220th globally by market capitalization, the company’s influence on the Bitcoin market is disproportionate. In 2024 alone, MicroStrategy acquired 257,000 BTC—exceeding the total Bitcoin mined that year (218,829 BTC).

The company’s ambitions show no signs of slowing. It recently announced plans to raise $42 billion for additional Bitcoin purchases, equivalent to 2.6 years’ worth of Bitcoin’s annual production at current rates.

Beyond MicroStrategy: A Growing Movement

MicroStrategy’s actions are just the tip of the iceberg. According to Hougan, 70 publicly traded companies already hold Bitcoin on their balance sheets. This list includes not only crypto-native firms like Coinbase and Marathon Digital but also mainstream giants like Tesla, Block, and Mercado Libre. Together, these firms—excluding MicroStrategy—own 141,302 BTC.

Private companies are also significant players. SpaceX, Block.one, and others collectively hold at least 368,043 BTC, based on data from BitcoinTreasuries.com. Hougan highlights that MicroStrategy’s share of the corporate Bitcoin market is already less than 50% and is likely to decline further as adoption grows.

What happens when larger companies, like Meta, which is currently considering a shareholder suggestion to add bitcoin to its balance sheet—20x the size of MicroStrategy start to emulate MicroStrategy’s strategy?

Bitcoin holdings by publicly listed companies across three regions: the United States, Canada, and the Rest of the World (ROW) – Source: Bitcoin Magazine Pro

Why Corporate Bitcoin Adoption Is Poised to Accelerate

Two major barriers have historically constrained corporate adoption of Bitcoin: reputational risk and unfavorable accounting rules. Both have shifted dramatically in recent months:

1. Reduced Reputational Risk

Until recently, companies faced significant hurdles in adopting Bitcoin. CEOs and boards were concerned about shareholder lawsuits, regulatory scrutiny, and negative media coverage. However, as Bitcoin gains acceptance at institutional and governmental levels, these fears are dissipating. Post-election, Bitcoin has seen growing bipartisan support in Washington, making it increasingly “commonplace—and even popular—to own Bitcoin,” according to Hougan.

2. Favorable Accounting Changes

The Financial Accounting Standards Board (FASB) introduced a new guideline, ASU 2023-08, that fundamentally changes how Bitcoin is accounted for. Previously, companies were required to mark Bitcoin as an intangible asset, forcing them to write down its value during price declines but preventing upward adjustments when prices rose.

Under the new rule, Bitcoin can now be marked to market, allowing companies to recognize profits as its price appreciates. This change removes a significant disincentive and is expected to drive exponential growth in corporate Bitcoin holdings.

The “Why” Behind Corporate Bitcoin Adoption

Corporate motivations for holding Bitcoin mirror those of individual investors. Hougan outlines several reasons:

Hedging Against Inflation: Bitcoin is viewed as a safeguard against currency debasement.Speculation: Some companies aim to boost stock prices through Bitcoin exposure.Cultural Signaling: Holding Bitcoin signals alignment with innovation and attracts a younger, tech-savvy customer base.Strategic Hunches: For many, Bitcoin ownership is a calculated gamble.

Hougan asserts that the motivations behind corporate adoption matter less than the magnitude of demand. “You just need to look at the numbers,” he writes. “Where does all this demand look like it’s going? And what would that mean for the market?”

A Megatrend That Could Redefine Markets

Hougan’s memo paints a bullish picture of Bitcoin’s future. If hundreds of companies follow MicroStrategy’s lead, the cumulative demand could drive Bitcoin’s price significantly higher in the coming year. With 70 companies already on board under less favorable conditions, the stage is set for an explosion in adoption.

This trend not only highlights Bitcoin’s evolving role as a treasury asset but also underscores its growing acceptance as a mainstream financial instrument. For mature investors, the implications are clear: the next 18 months could mark a pivotal period in Bitcoin’s journey from speculative asset to institutional cornerstone.

The Time to Buy Is Now

With reputational risks fading, accounting rules evolving, and demand accelerating, Bitcoin’s integration into corporate treasuries appears inevitable. Hougan’s analysis invites investors to consider the broader implications:

If corporations truly embrace Bitcoin at scale, what could that mean for the market’s future? For savvy investors, the answer might lie in acting sooner rather than later.

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.