● Analysis: Inflows of $420 million into MicroStrategy-related ETFs drive Bitcoin up
According to Bloomberg, the market frenzy following Trump's election has cooled somewhat in the stock and corporate credit sectors, but in the speculative area of Wall Street, venture capital enthusiasm is on the rise. ETF trading associated with cryptocurrencies and big tech stocks is active, driving risk assets to perform strongly against the backdrop of economic prosperity and Trump's promises.
This week, two leveraged funds related to MicroStrategy saw an inflow of $420 million, driving its stock up 24%. This investment demand has pushed the price of MicroStrategy, enabling it to raise more funds, further supporting Bitcoin. The daily rebalancing of leveraged ETFs may exacerbate the volatility of the underlying assets. Nomura Holdings estimates that leveraged ETFs purchased $2.1 billion in U.S. stocks at Thursday's close, setting a record high.
● VanEck: Reiterates Bitcoin target price of $180,000 unchanged
According to Golden Finance, asset management giant VanEck's latest report reaffirms its target price for Bitcoin in this cycle to be $180,000, noting that the rebound seems to have just begun from key indicators. VanEck analyzed three key indicators: funding rates, relative unrealized profits (RUP), and retail interest trends, indicating that:
1. Since November 12, the perpetual futures funding rate has remained above 10%, indicating an increase in bullish momentum;
2. Additionally, the current 30-day moving average relative unrealized profit level is about 0.54, typically signaling that the market will peak over a longer period;
3. The search term popularity is only 34% of the peak in May 2021, indicating that speculative enthusiasm has not yet spread, and the re-participation of retail investors will allow Bitcoin to have further upside potential.
● Bitwise CEO: 2024 is the year of Bitcoin securitization
According to Golden Finance, Bitwise CEO Hunter Horsley stated on platform X that with Bitcoin ETFs, options, stocks, convertible notes, and now credit, 2024 is the year of Bitcoin securitization, and in fact, everything has just begun.
● The ETF Store President: Solana ETF expected to be approved by the end of next year at the latest
According to Wu Shuo reports, The ETF Store President Nate Geraci stated that the Solana ETF is highly likely to be approved by the end of next year, and the SEC may be in contact with the issuer. Two Prime Digital Assets CEO Alexander Blume also believes that industry leaders like Bitwise have submitted applications, showing confidence in success.
Blume pointed out that the success of spot Bitcoin and spot Ethereum ETFs, combined with a more favorable regulatory environment, will promote the emergence of the SOL ETF within the year.
● The Federal Reserve announces details of the 2025 framework review, excluding 2% inflation target
According to PANews, the Federal Reserve announced details of the upcoming framework review, scheduled for May 15-16, 2025. The Federal Reserve stated that the framework review will not include the 2% inflation target, and the focus will be on strategic statements and communication tools. The review will include open "Federal Reserve Listening" events held nationwide, and discussions among policymakers will begin at the January meeting.
● Federal Reserve report: U.S. fiscal debt viewed as the biggest risk to financial stability
According to Bloomberg, the Federal Reserve pointed out in its semi-annual financial stability report that the U.S. government's debt burden is viewed as the biggest risk to financial stability, surpassing persistent inflation issues. The report showed that 54% of respondents believe the sustainability of fiscal debt is a significant risk, up from 40% six months ago.
The Federal Reserve stated that funding risks have eased but remain "significant." Stablecoin assets have grown significantly since the last report, with a market capitalization exceeding $170 billion. The Federal Reserve warned that these digital assets are structurally vulnerable to runs and lack a comprehensive federal prudential regulatory framework.
● Coin Center warns of potential threats facing the current U.S. crypto industry
According to Cointelegraph, the nonprofit crypto advocacy group Coin Center warned that although Trump's victory is favorable for the crypto industry, existing policies may deter innovators. Coin Center Research Director Van Valkenburgh pointed out in a blog post on November 21 that U.S. crypto users and developers face three major "monitoring threats" in 2025, including tax reporting and anti-money laundering policies.
The biggest threat is the crypto reporting requirements under U.S. tax code Section 6050I, which requires unlicensed reporting of $10,000 worth of cryptocurrency received. Coin Center stated last August that these requirements are unconstitutional. The second and third threats arise from sanctions against Tornado Cash, including criminal charges against its founder Roman Storm, which could set a bad precedent for developers of non-custodial crypto services. Valkenburgh noted that while the Trump administration may be crypto-friendly, it may not roll back sanctions and anti-money laundering policies. The Justice Department may maintain political independence and not abandon prosecutions due to a change in administration. He added that existing measures do little to prevent criminals from using crypto tools, and innovators may continue to be driven out of the U.S.
