Molly White  

Newsletter: President on brink of bailout for bitcoin

Trump tries to breathe life back into the crypto markets’ “Trump pump” while federal regulatory agencies wash their hands of any crypto industry oversight

citationneeded.news/issue-78/

#crypto #cryptocurrency #USpolitics #USpol

1+
Molly White  

While cryptocurrencies were once viewed as a subversive financial instrument intended to be independent from governments, banks, or the traditional financial system, it’s become clear that the crypto world is deeply dependent on outside forces propping it up.

#crypto #cryptocurrency #USpolitics #USpol

The crypto industry has gotten everything it could have dreamed of in the US after the elections, and yet the market has taken a dramatic turn for the worse. Bitcoin prices have been tanking, dropping more than 25% since the previous all-time high price, which was set on January 20. A 12% tumble last week became the new largest three-day drop since FTX exploded in November 2022.1 Although Trump has been hailed by the crypto industry as their knight in shining armor, and although he quickly got to work fulfilling the industry wishlist, prices have been on the decline since he took office. While cryptocurrencies were once viewed as a subversive financial instrument intended to be independent from governments, banks, or the traditional financial system, and although many in the industry still like to repeat that narrative when it suits them, it’s become clear that the crypto world is deeply dependent on outside forces propping it up. Earlier this week, crypto media outlet CoinDesk published a headline that would make Satoshi blush: “Crypto Market Faces Weak Demand, Needs Trump Initiatives to Kick In, JPMorgan Says”.2 (Satoshi inscribed into the first block of the bitcoin blockchain the text “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks”. This quote of that day’s Times headline has long been interpreted as a nod to bitcoin’s original ideology, and a rebuke of banks and government financial intervention.)
And although many still describe bitcoin as “digital gold”, believing that it should serve as a hedge against economic turmoil in similar ways as some people view actual gold, bitcoin and other crypto assets are once again demonstrating that they are among some of the first assets to decline among broader economic uncertainty. With looming tariffs by the Trump administration against Canada, Mexico, and China, concerns from the Federal Reserve about those and other policies’ impacts on inflation, and continuing wobbles in the labor market, people are selling off risky assets like crypto in hopes of better weathering the economic storm on the horizon. The comparatively new bitcoin ETFs set new records for the highest single-day outflows on February 25, with investors withdrawing more than $1 billion in total from the eleven ETFs.3
CoinDesk headline: Crypto Market Faces Weak Demand, Needs Trump Initiatives to Kick In, JPMorgan Says
Show thread
1+
Dominik
Follow

@molly0xfff It's good that it is recognized. Look e.g. at Forbes: Is Keeping 's Dream Alive? social.librem.one/web/statuses

But there will also be a renaissance. Look e.g. at: Bitcoin Lightning Network Is This The Fix for Digital Cash: hackernoon.com/bitcoin-lightni

· Web · 0 · 1 · 1
Sign in to participate in the conversation
Librem Social

Librem Social is an opt-in public network. Messages are shared under Creative Commons BY-SA 4.0 license terms. Policy.

Stay safe. Please abide by our code of conduct.

(Source code)

image/svg+xml Librem Chat image/svg+xml