Musk has begun to discuss using blockchain technology to streamline the government’s IT systems and cut unnecessary costs, according to recent reports. To wit, Musk is the new president’s official advisor on matters pertaining to government efficiency. President Donald Trump appointed him to head the DOGE: a White House office named the Department of Government Efficiency. Sources: Musk to Move US Government Onto Blockchain Musk and his team have reportedly discussed using blockchain to account for federal spending, secure government data, facilitate payments, and even manage government buildings. That’s according to sources close to the conversations. They requested anonymity because there has yet to be any public revelation of these talks in any official capacity. Accordingly, officials at the DOGE and White House did not return any requests for comment. Neither did Mr. Musk himself. But, this development may come as no surprise to crypto sector watchers. The DOGE acronym is a reference to Musk’s favorite blockchain cryptocurrency. Meanwhile, people associated with the new government efficiency office have met with key players of several cryptocurrency blockchains. They mean to assess the usefulness of their platforms for the governments’ requirements. One person said Musk already had an army of around 100 volunteers who had helped write code for his government efficiency projects prior to Trump’s inaugural. Will Trump Favor Solana For Official Use? Mr. Trump’s own business associates chose Solana to launch the wildly popular Trump and Melania meme coins. However, it is unclear whether the new administration would utilize Solana as an official channel for government management and online transactions. That boon could go to Ethereum, another blockchain favored by Trump and the leading cryptocurrency network by total market capitalization. Ethereum is also far ahead of Solana in terms of adoption by US financial institutions. It has had exchange-traded fund (ETF) products available on Wall Street since last July. Moreover, Ethereum is well-favored by Peter Thiel, the legendary Silicon Valley founder and venture capitalist who co-founded PayPal with Elon Musk and helped start it with one of his Thiel Fellowship grants. It’s safe to assume that whether it’s Solana, Ethereum, or any other network, the underlying asset would explode in value if it’s indeed used by the US government. The post Solana to Rip? Elon Musk Reportedly Planning a Blockchain Revolution for US Government appeared first on CryptoPotato .
Crypto Potato 2025-01-27 22:42
Rosseti, the largest grid operator in Russia, is getting into Bitcoin mining to tackle economic challenges and put its unused power supply centers to work. On Jan. 27, the company announced plans to use underloaded electricity hubs for mining, saying it could help maximize energy use, generate more revenue, and boost the economy. The company’s exact words were: “The Rosseti Group is the largest grid company in Russia and can act as the operator for coordinating the placement of mining infrastructure.” Rosseti uses mining to boost electricity revenue The company is looking to connect energy-hungry mining operations to its free power supply centers, especially in areas with low electricity demand. These facilities, often running below capacity, are now being viewed as a gateway to drive up grid loads and add to Rosseti’s tariff income. Rosseti said , “In this regard, the company is also interested in developing mining since this will facilitate the use of free capacity, increase the load of power supply centers, increase the company’s tariff revenue, as well as the development of the economy and the growth of tax payments.” The timing of Rosseti’s push into Bitcoin mining isn’t random. In December 2024, President Vladimir Putin made headlines at the VTB Investment Forum in Moscow by describing Bitcoin as “unstoppable.” His statement comes as Russia faces increased pressure from Western sanctions, especially after $300 billion in reserves were frozen following the Ukraine conflict. “Who can ban Bitcoin? Nobody. And who can prohibit the use of other electronic means of payment? Nobody,” Putin said at the forum. He criticized the dependence on the US dollar, saying their dominance is often weaponized for political gains. “Why accumulate reserves if they can be lost so easily?” Putin added. Now the Kremlin is taking proactive steps to integrate crypto into Russia’s financial system. New laws now exempt cryptocurrency transactions from value-added tax (VAT) and cap income tax rates on digital asset profits. While Bitcoin mining does have a big economic opportunity, it has already strained Russia’s energy resources. Putin himself shared his concerns in June 2024, when he said that mining consumes around 1.5% of Russia’s total electricity supply. He called this “worrying,” and in response, Russia introduced tough new regulations in December. Mining was banned in ten regions where energy resources were critically low, with seasonal restrictions added in parts of Siberia during peak winter months. Putin warned that while mining is recognized as a legitimate activity, “timely decisions” are necessary to prevent it from overwhelming the national grid. Cryptopolitan Academy: FREE Web3 Resume Cheat Sheet - Download Now
Cryptopolitan 2025-01-27 22:40
Bitcoin’s recent price dip to $97,754 has stirred concerns among traders as emerging AI competition from China affects market sentiment. Despite the sharp decline, Bitcoin derivatives metrics suggest that whales
CoinOtag 2025-01-27 22:40
Deepseek, a Chinese artificial intelligence (AI) startup founded in 2023 by Liang Wenfeng, has swiftly unsettled global markets with its groundbreaking and cost-effective AI models. Its rapid ascent has rippled across U.S. equities, notably affecting Nvidia shares, and has even introduced turbulence into the cryptocurrency sector. Deepseek’s Rise: The $5.58M AI Model That Left Silicon
Bitcoin.com 2025-01-27 22:30
Bitcoin has experienced a rollercoaster start to the week, briefly dipping below the $100,000 mark in the early hours of Monday before recovering slightly. This correction came after Bitcoin achieved a new all-time high above $109,000 last week, marking a milestone in the cryptocurrency’s ongoing bull run. At the time of writing, Bitcoin’s price has climbed back above $100,000, leaving investors speculating whether the asset will resume its upward trajectory or enter a prolonged consolidation phase. Amid this, Burak Kesmeci, a contributor to CryptoQuant’s QuickTake Platform. Kesmeci recently highlighted intriguing trends in Bitcoin’s trading volume on Binance, suggesting that current selling pressure may be “easing.” Related Reading: Bitcoin’s Latest ATH: Is The Top Finally In Or Just Getting Started? Taker Sell Volume Shows Signs of Stabilization Kesmeci’s analysis focuses on the Taker Sell Volume metric on Binance, which has shown a noticeable uptick in recent sessions. Historically, Taker Sell Volume spikes have signaled heightened selling activity, eventually giving way to buying momentum. Kesmeci notes that these episodes often coincide with local bottoms as sell orders are completed and new buy orders start to flow in. However, in the past week, hourly data shows a pattern of lower highs in Taker Sell Volume, indicating a gradual decline in selling pressure. This trend suggests that as major sell orders are fulfilled, the influence of sellers is waning, potentially paving the way for renewed buying interest. According to the analyst, if this pattern holds, Bitcoin could be poised for another rally, contingent on sustained buyer engagement at current price levels. What The Stablecoin Market Current Stance Signal For Bitcoin While Kesmeci’s analysis offers a promising outlook, other factors contribute to a more cautious market environment. A separate post by analyst Avocado Onchain highlights the shifting dynamics of stablecoin flows. USDC deposits into exchanges have surged, potentially signaling increased interest in digital assets. However, this influx coincided with Bitcoin’s price falling back below $100,000. Avocado also points to a negative Coinbase Premium, a metric that reflects US-led buying momentum. With this indicator showing weakness, the expected strong support from US investors has yet to materialize. Meanwhile, market sentiment has been influenced by speculation over a potential bubble in US AI tech stocks, as well as concerns about broader corrections in risk assets. Related Reading: Bitcoin Sudden Breakdown: Price Falls Below $100,000 Support Under these conditions, Avocado highlighted that Bitcoin may face an extended consolidation period before resuming its upward climb. The analyst wrote: Bitcoin is more likely to undergo a substantial consolidation period before showing signs of recovery, rather than rebounding in the short term. Thus, it is important to approach the market with a long-term perspective rather than a short-term one. I remain optimistic about Bitcoin셲 long-term outlook. Featured image created with DALL-E, Chart from TradingView
NewsBTC 2025-01-27 22:00
Standard Chartered’s Geoffrey Kendrick suggests purchasing Bitcoin during its current slump, driven by its correlation with the Nasdaq. Geoffrey Kendrick views the current bitcoin downturn as a strategic buying opportunity before the market regains stability. Kendrick Shows Optimism on Bitcoin Geoffrey Kendrick’s optimistic stance on Bitcoin underscores its resilience amid market volatility and global economic uncertainty. Despite short-term price fluctuations and shifting market sentiment, Bitcoin’s inherent value proposition remains intact. Meanwhile, Kendrick’s views reflect a long-term perspective, emphasizing Bitcoin’s potential to weather economic storms. The cryptocurrency’s decentralized nature and limited supply contribute to its appeal as a hedge against inflation. Similarly, Bitcoin’s ability to withstand market pressures and adapt to changing conditions reinforces its value proposition. Kendrick’s optimism is also rooted in Bitcoin’s fundamentals, which remain strong despite short-term market fluctuations. Recall that Kendrick predicted that Bitcoin’s price could rise as high as $125,000 following President Donald Trump’s election. Despite price volatility, analysts remain bullish on Bitcoin’s prospects. Several nations, including El Salvador, have incorporated Bitcoin as a strategic reserve. Growing Enthusiasm for the “buy the dip” Investment Strategy Institutional investors have been aggressively buying Bitcoin since December 2024, accumulating over 34,000 BTC. This significant buying spree follows a major sell-off by institutional holders after Bitcoin’s price peaked. On December 17, Bitcoin’s price surpassed $108,000, triggering a substantial sell-off by institutional investors. Wallets holding 1,000 to 10,000 BTC primarily drove the sell-off, dumping 79,000 BTC in one week. The massive sell-off led to a 15% correction in Bitcoin’s value, creating a buying opportunity for investors. Microstrategy recently added 10,107 BTC worth $1.1B to its Bitcoin stash. Meanwhile, analysts forecast a surge in corporate Bitcoin adoption, predicting over $50 billion in investments by 2025. MicroStrategy, with 471,107 BTC, is expected to lead this charge. Factors Influencing the Bitcoin Price Movement Notably, the cryptocurrency market cautiously began the week, as Bitcoin fell below $100,000 for the first time since January 16. This decline coincides with growing macroeconomic concerns ahead of the Federal Open Market Committee meeting. Fresh tech sector disruptions driven by DeepSeek’s AI breakthrough also contribute to the market’s risk-off sentiment. Additionally, Bitcoin’s price is being influenced by broader macroeconomic factors, reflecting cautious trader sentiment and market uncertainty. Upcoming Federal Reserve announcements and fluctuating interest rates are adding to the uncertainty. However, Bitcoin’s role as a store of value and its correlation with traditional markets remain topics of discussion. The post “Buy the Dip”: Standard Chartered Says Amid Bitcoin Selloff appeared first on TheCoinrise.com .
The Coin Rise 2025-01-27 21:39
Five days ago, a significant number of dormant bitcoins tied to early addresses were reactivated after years of inactivity. Notably, many of these wallets trace their origins to 2017, marking an intriguing revival of funds untouched for years. Meanwhile, market analytics firm Santiment reports that bitcoin wallets containing between 100 and 1,000 BTC have climbed
Bitcoin.com 2025-01-27 21:30
Bitcoin’s price fluctuated sharply following the launch of the DeepSeek AI app, igniting fears of risk across various markets. As the cryptocurrency market reacted, over $864 million was lost to
CoinOtag 2025-01-27 21:27
The cryptocurrency market faced a significant downturn on Monday, with Bitcoin miners and related stocks declining sharply amid broader market sell-offs. This decline was largely influenced by technological advancements in
CoinOtag 2025-01-27 21:08
Maple Finance has launched a new derivatives product catering specifically to institutional investors’ growing interest in Bitcoin and crypto investments. This innovative offering leverages collateralized crypto loans to enhance yield
CoinOtag 2025-01-27 21:05
The recent divergence in U.S. Treasury yields, where shorter-term yields have been declining while longer-term yields are on the rise, has sparked significant interest across financial markets. This development provides critical insights into macroeconomic conditions and potential strategies for Bitcoin investors navigating these uncertain times. We’ve recently observed a divergence in U.S. Treasury yields, with shorter-term yields declining while longer-term yields are rising. 🏦 What do you think this signals for the government bond market, Bitcoin, and the broader financial markets? 🤓 Let me know 👇 pic.twitter.com/eJmj6hhyKV — Bitcoin Magazine Pro (@BitcoinMagPro) January 27, 2025 Treasury Yield Dynamics Treasury yields reflect the return investors demand to hold U.S. government debt, and they are a critical barometer for the economy and monetary policy expectations. Here’s a snapshot of what’s happening: Short-term yields falling: Declining yields on short-term Treasury bonds, such as the 6-month yield, suggest that markets are anticipating the Federal Reserve will pivot to rate cuts in response to economic slowdown risks or lower inflation expectations. Long-term yields rising: Meanwhile, rising yields on longer-term bonds, like the 10-year Treasury yield, indicate growing concerns about persistent inflation, fiscal deficits, or higher-term premiums required by investors for holding long-duration debt. This divergence in yields often hints at a shifting economic landscape and can serve as a signal for investors to recalibrate their portfolios. Related: We're Repeating The 2017 Bitcoin Bull Cycle Why Treasury Yields Matter for Bitcoin Investors Bitcoin’s unique properties as a non-sovereign, decentralized asset make it particularly sensitive to macroeconomic trends. The current yield environment could shape Bitcoin’s narrative and performance in several ways: Inflation Hedge Appeal: Rising long-term yields may reflect persistent inflation concerns. Historically, Bitcoin has been seen as a hedge against inflation and currency debasement, potentially increasing its appeal to investors looking to protect their wealth. Risk-On Sentiment: Declining short-term yields could indicate looser financial conditions ahead. Easier monetary policy often fosters a risk-on environment, benefiting assets like Bitcoin as investors seek higher returns. Financial Instability Hedge: Divergence in yields, particularly if it leads to an inverted yield curve, can signal economic instability or recession risks. During such periods, Bitcoin’s narrative as a safe-haven asset and alternative to traditional finance may gain traction. Liquidity Considerations: Lower short-term yields reduce borrowing costs, potentially leading to increased liquidity in the financial system. This liquidity often spills into risk assets, including Bitcoin, fueling upward price momentum. Broader Market Insights The impact of yield divergence extends beyond Bitcoin to other areas of the financial ecosystem: Stock Market: Lower short-term yields typically boost equities by reducing borrowing costs and supporting valuation multiples. However, rising long-term yields can pressure growth stocks, particularly those sensitive to higher discount rates. Debt Sustainability: Higher long-term yields increase the cost of financing for governments and corporations, potentially straining heavily indebted entities and creating ripple effects across global markets. Economic Outlook: The divergence could reflect market expectations of slower near-term growth coupled with longer-term inflationary pressures, signaling potential stagflation risks. The U.S. national debt is the total amount of money owed by the US federal government to its creditors, including individuals, corporations, and foreign governments. The Federal Reserve is the largest holder of U.S. government debt. Source: Bitcoin Magazine Pro - Federal Reserve Debt vs Bitcoin Related: What Bitcoin Price History Predicts for February 2025 Takeaways for Bitcoin Investors For Bitcoin investors, understanding the interplay between Treasury yields and macroeconomic trends is essential for informed decision-making. Here are some key takeaways: Monitor Monetary Policy: Keep a close eye on Federal Reserve announcements and economic data. A dovish pivot could create tailwinds for Bitcoin, while tighter policy might pose short-term challenges. Diversify and Hedge: Rising long-term yields could lead to volatility across asset classes. Diversifying into Bitcoin as part of a broader portfolio strategy may help hedge against inflation and economic uncertainty. Leverage Bitcoin’s Narrative: In an environment of fiscal deficits and monetary easing, Bitcoin’s story as a non-inflationary store of value becomes more compelling. Educating new investors on this narrative could drive further adoption. Conclusion The divergence in Treasury yields underscores shifting market expectations around growth, inflation, and monetary policy—factors that have far-reaching implications for Bitcoin and broader financial markets. For investors, understanding these dynamics and positioning accordingly can unlock opportunities to capitalize on Bitcoin’s unique role in a rapidly changing economic landscape. As always, staying informed and proactive is key to navigating these complex times. For ongoing access to live data, advanced analytics, and exclusive content, visit BitcoinMagazinePro.com . Disclaimer: This article is intended for informational purposes only and does not constitute financial advice. Readers are encouraged to conduct thorough independent research before making investment decisions.
Bitcoin Magazine 2025-01-27 20:54
We’re currently watching China give America what it kinda deserves a little, as the last week of January 2025 turns into a financial bloodbath, with cryptos and US tech stocks collapsing under the weight of Chinese startup DeepSeek’s sudden and unexpected rise. The AI company announced the development of an artificial intelligence model that is not only faster and cheaper than its competitors but also outperforms them in way too many benchmarks. This has seriously spooked global markets, triggering massive sell-offs from Wall Street to on-chain. DeepSeek’s AI causes global sell-off Bitcoin fell by over 5% on Monday to $98,000, according to data from CoinGecko, briefly hitting a low of $97,750 before recovering slightly to $99,080 as of press time. This crash follows $250 million in Bitcoin long liquidations over the past 24 hours, Coinglass data shows. Leveraged traders who had bet on Bitcoin’s continued rise were forced to sell their assets to cover mounting losses. Meanwhile, the Nasdaq sank more than 3%, with major tech companies taking a beating. Shares of Coinbase and MicroStrategy fell 6% and 4% respectively. Bitcoin miners heavily involved in AI-related ventures suffered even worse losses: Core Scientific plunged 28%, Terawulf dropped 25%, and Iren, formerly Iris Energy, nosedived 22%. But if we’re being completely honest, this Chinese vendetta has been a long time coming. Now, according to DeepSeek, training its AI model costs only $5.8 million. Even if development costs are adjusted to $2 billion—a figure some analysts suggest—it still pales in comparison to the $6.6 billion OpenAI raised in its latest funding round. DeepSeek’s workforce, at just 200 employees, is minuscule compared to OpenAI’s 4,500-strong team. The AI model’s success has also triggered debate over how the company managed to achieve such groundbreaking results while relying on less advanced chips. Adding to the chaos, DeepSeek-related memecoins have surged by over 20,000% just today. It’s a bizarre twist in a market that’s watching billions vanish in stock value while meme assets soar. Peter Schiff weighed in, saying , “China may have jumped ahead of us in AI with DeepSeek, but they can’t touch us when it comes to meme coins. We’ve got that market cornered.” No idea what he even meant by that, knowing him. Last week, Bitcoin hit a record high of $109,600 in anticipation of President Donald Trump’s executive order on crypto , which was released Thursday. But unfortunately, the order left many traders underwhelmed. It proposed a national Bitcoin stockpile rather than a reserve, which would have involved actively buying Bitcoin on a regular basis. Traders who had banked on a more aggressive approach were disappointed, especially after the president and his wife, Mrs Melania Trump, rug-pulled investors with their meme coins. What to know about DeepSeek right now According to Jefferies analysts, DeepSeek’s AI models are so efficient that their training costs were less than 10% of what Meta spent on its Llama model. The models also outperformed OpenAI’s o1 in benchmarks like AIME and GPQA, achieving superior accuracy in under 8,500 steps. DeepSeek has also climbed to the top of app store charts in both the US and China, dethroning OpenAI’s ChatGPT as the most downloaded free app. Search interest for DeepSeek has tripled, overtaking both ChatGPT and Gemini. As of January 10th, the app didn’t even rank in the top 100. Earlier today, the company announced it was temporarily limiting new user registrations due to what it described as “large-scale malicious attacks” on its services. Elon Musk, the richest man on earth, speculated that DeepSeek likely has access to roughly 50,000 Nvidia H100 chips, despite U.S. export restrictions on advanced GPUs to China. He also added that: “It obviously wasn’t all done on a $6 million budget.” There’s actually a lot of doubt about DeepSeek’s claimed costs and raising suspicions about how they’ve bypassed restrictions. And this whole thing has also had investors second-guessing their bets on chip stocks and questioning the sky-high prices they’ve been paying. This morning, the iShares Semiconductor ETF (SOXX) tumbled over 6%, with Nvidia, Marvell Technology, and U.K.-based Arm Holdings suffering even steeper losses. Shockingly, Nvidia has actually lost over $600 billion in market capitalization today, making it the largest one-day loss for a single stock in the history of the world. Deutsche Bank strategist Jim Reid called out the “stratospheric” valuations in a note to clients, pointing out that some chipmakers are priced even higher than big-name tech companies like Apple and Meta. Nvidia, for instance, started the week trading at roughly 56 times its trailing 12-month earnings, while Advanced Micro Devices (AMD) has a price-to-earnings ratio in the triple digits. Marvell Technology, despite losing money, boasts a market cap of over $100 billion. Cryptopolitan Academy: FREE Web3 Resume Cheat Sheet - Download Now
Cryptopolitan 2025-01-27 20:50
“Buy the Dip”: Standard Chartered Says Amid Bitcoin Selloff
