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Michael Saylor has unveiled a framework aimed at integrating digital assets into the US financial system, advocating for regulatory clarity and governance standards to boost institutional investment. The plan envisions expanding digital currency markets significantly and proposes a strategic Bitcoin reserve to potentially generate trillions in wealth, thereby strengthening the US dollar and addressing national debt. Meanwhile, MicroStrategy continues to increase its Bitcoin holdings, now totaling 439,000 BTC, reinforcing its belief in Bitcoin as a store of value.
The cryptocurrency market is experiencing significant volatility, with Dogecoin dropping 11% in 24 hours and over 20% weekly, amid a broader sell-off affecting Bitcoin and Ethereum. This downturn follows a hawkish shift from the Federal Reserve, raising concerns about future rate cuts. Additionally, a recent security breach in Dogecoin has further undermined confidence in its stability, leading to $68 million in liquidations. Analysts are monitoring key price levels, with hopes of a potential recovery to $1.50 next year if market conditions improve.
Bitcoin extended its pullback, trading at $96,954, as bulls defended the 50-day SMA amid mixed sentiment following U.S. inflation data. Ethereum faced resistance at $4,094, while XRP struggled at $2.24, with critical support levels identified for several altcoins, including Solana and Cardano. The market remains volatile, with traders weighing potential buying opportunities against the risk of deeper corrections.
Cathie Wood, founder of ARK Investment Management, predicts a surge in startup mergers and acquisitions if Donald Trump wins another presidential term, citing potential regulatory changes. She maintains that Bitcoin could exceed $1 million by 2030 due to its fixed supply, contrasting it with gold's expandable production. Wood also highlights the positive impact of Trump's pro-crypto policies, including the nomination of Paul Atkins as SEC Chair, which could foster growth in both the tech startup and cryptocurrency markets.
Shiba Inu has partnered with Chainlink to enhance its ecosystem, enabling cross-chain functionality for its assets SHIB, BONE, and LEASH across 12 blockchains through the Cross-Chain Interoperability Protocol (CCIP). Despite this collaboration, both SHIB and LINK experienced significant price drops of nearly 20% and 16%, respectively, amid a broader cryptocurrency market correction following the latest Federal Reserve meeting.
Solana's price has plummeted 30% from a peak of $263 to around $190, following a broader cryptocurrency market downturn after the Federal Reserve's recent interest rate announcement. Concerns are growing that it could fall to $100 if bearish trends persist, especially with a significant drop in Total Value Locked (TVL) and mixed trader sentiment. However, a recovery is possible if support levels hold.
Japanese investment firm Metaplanet has raised nearly $61 million to expand its Bitcoin holdings, issuing 5 billion yen in bonds despite shareholder skepticism. Following its declaration as a "Bitcoin treasury company," Metaplanet's stock has seen a significant decline, reflecting investor concerns over its strategy. Meanwhile, Bitcoin recently reached an all-time high of $108,135 before experiencing a drop amid hawkish comments from the Federal Reserve.
The stock market faced significant losses as major indexes fell below key levels, influenced by a less-dovish Fed rate outlook and rising Treasury yields. FedEx surged on plans to spin off its Freight business, while Micron Technology and Vertex Pharmaceuticals plummeted due to disappointing guidance and drug study results, respectively. Despite a weak performance from Nike and other companies, a tame inflation report provided some relief on Friday.
Hyperliquid's HYPE token has surpassed a $10 billion market cap, reaching an all-time high of $30, amid market volatility. Following a historic airdrop of 310 million tokens, HYPE surged over 20% in 24 hours, positioning it just below Polkadot in market rankings. The platform's success is attributed to zero gas fees and low trading costs, with plans for Ethereum Virtual Machine integration to enhance its DeFi capabilities.
Fed Chair Jerome Powell's hawkish outlook for 2025 spooked investors, leading to significant drops in cryptocurrencies, with Bitcoin falling 8% to $92,000 and XRP plunging 13%. Although both have since rebounded, concerns about thinning liquidity over the holidays and a potential US government shutdown loom large. The aggressive tone from the Fed caught traders off guard, as they had anticipated a 0.25% rate cut, while Powell dismissed the idea of a US Bitcoin strategic reserve.
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