On Wednesday (December 25), Bitcoin rebounded and soared above $98,000, with Russia only banning mining in 10 regions for 6 years, and President Putin, as expected, did not implement a comprehensive restriction. U.S. President-elect Trump announced the appointments for the cryptocurrency committee, and MicroStrategy held a shareholder meeting to raise funds for purchasing more Bitcoin.
Starting from January 1, 2025, cryptocurrency mining will be completely banned in 10 regions of Russia for a duration of 6 years, with the ban lasting until March 15, 2031. Russian lawmakers have also approved seasonal restrictions on mining in major cryptocurrency mining regions to prevent energy outages. These restrictions align with the cryptocurrency mining law signed by the president in August and October 2024.
Ten regions and territories in Russia will ban cryptocurrency mining, including Dagestan, the Ingush Republic, Kabardino-Balkaria, the Karachay-Cherkess Republic, North Ossetia, Chechnya, the Donetsk and Luhansk People's Republics, as well as the Zaporizhzhia and Kherson regions.
Reports indicate that the ban will affect pool activities and individual cryptocurrency mining. In addition to the comprehensive ban, Russia will also partially restrict mining operations in three regions of Siberia during the winter energy consumption peak. Seasonal restrictions will affect parts of Irkutsk, Buryatia, and the Trans-Baikal region.
In 2025, these restrictions will initially last from January 1 to March 15, and will be extended in the following years from November 15 to March 15.
Russia's latest mining restrictions are an improved version of the initial restrictions formally proposed by the government in November. Initially, lawmakers planned to ban cryptocurrency mining in 13 regions, including Russia's major mining area, Irkutsk.
Large mining companies in Russia, such as BitRiver, rely on cheap electricity from Irkutsk. According to local sources, the Irkutsk region houses BitRiver's first and largest data center, which began operations in Bratsk in 2019.
With positive news from Russia, a series of technology appointments announced by Trump also boosted the market.
Trump stated on his social platform Truth Social: 'I am pleased to announce that an excellent team will work with the White House on artificial intelligence (AI) and cryptocurrency czar David Sacks. Together, we will drive scientific breakthroughs, ensure America's technological leadership, and usher in a golden age of American innovation.'
In a post, he stated that his pick for the Director of the White House Office of Science and Technology Policy (OSTP) is Michael Kratsios, and the Executive Director of the President's Council of Advisors on Science and Technology (PCAST) and OSTP Senior Advisor is Lynne Parker.
Kratsios served as the Chief Technology Officer for the incoming Trump administration and was appointed as the Acting Deputy Under Secretary of Defense for Research and Engineering during the last term of the incoming president in the White House.
According to a profile on the University of Tennessee, Knoxville website, Parker serves as the Vice Chancellor of the university. The profile also notes that from 2018 to 2022, Parker was part of the OSTP and held several positions, including Deputy Chief Technology Officer of the United States, leading AI-focused national policy work.
Trump also stated that the President's Advisory Council on Digital Assets (cryptocurrency committee) will be led by Bo Hines as Executive Director, describing it as 'a new advisory group made up of prominent figures from the cryptocurrency industry.' Hines was a college football player and a Republican congressional candidate but lost to Democratic Congressman Wiley Nickel in the 2022 election.
In the industry, MicroStrategy convened a special shareholder meeting seeking approval to increase its authorized shares to support its $42 billion Bitcoin acquisition plan, known as the 21/21 plan.
The proposal includes increasing the authorized number of Class A common stock and preferred stock to provide more flexibility for future stock issuances. Since October, MicroStrategy has significantly accelerated its Bitcoin purchasing speed, acquiring 42,162 Bitcoins in December alone. As of December 22, the company holds over 444,000 Bitcoins, valued at approximately $43.5 billion at current prices.
Bitcoin Technical Analysis
Economies.com reports that Bitcoin prices have surged past $96,555, turning upward in intraday and short-term charts, halting the recent bearish correction suggested and establishing a bullish wave.
Its next major target is $105,000; note that unless it falls below $95,195 and maintains below it again, the bullish trend will remain valid.
