Bitcoin Magazine

Bitcoin Price Will Jump to $143,000 Next Year, Says Citi Bank

The bitcoin price could climb to $143,000 next year as continued adoption through exchange-traded funds and a more accommodating U.S. regulatory backdrop draw new capital into the market, according to a new forecast from Citi.

Analysts at the Wall Street bank set $143,000 as their base-case target for the bitcoin price over the next 12 months. They outlined a bullish scenario that places the price above $189,000, while their bearish case sees the bitcoin price falling to around $78,500 if macroeconomic conditions deteriorate, according to MarketWatch reporting.

The bitcoin price was trading near $88,000 on Friday, down roughly 30% from its late-October peak. The pullback followed a sharp wave of selling after the rally earlier this year, though Citi noted that outflows from spot bitcoin exchange-traded funds have moderated in recent weeks.

“Our forecasts, in particular for bitcoin, rest on an assumption that investor adoption continues with flows into ETFs of $15 billion boosting token prices,” the analysts wrote. The note was led by Alex Saunders, Citi’s head of global quantitative macro strategy.

Citi also pointed to potential regulatory clarity in the United States as a key driver of future demand. The U.S. Senate is negotiating its own version of the House-passed Clarity Act, legislation that would place bitcoin under the oversight of the Commodity Futures Trading Commission. The analysts said clearer rules could encourage broader institutional participation.

The bank’s bearish scenario assumes recessionary pressures and weaker appetite for risk assets. The bitcoin price fell to multi-month lows in November as concerns over high technology valuations and broader macro risks weighed on markets. 

The cryptocurrency shed more than $18,000 that month, marking its largest dollar decline since May 2021 amid heavy investor withdrawals.

Banks are embracing bicoin

Two weeks ago, the Bank of America told its wealth management clients to allocate 1% to 4% of their portfolios to digital assets, signaling a major shift in its approach to Bitcoin exposure. 

The move allowed over 15,000 advisers across Merrill, Bank of America Private Bank, and Merrill Edge to proactively recommend crypto to clients.

Last week, PNC Bank launched direct spot bitcoin trading for eligible Private Bank clients, allowing them to buy, hold, and sell bitcoin natively through its own digital banking platform without using an external exchange. The move was powered by Coinbase’s Crypto-as-a-Service infrastructure.

Bitcoin price analysis

Bitcoin’s latest sell-off underscores a market stuck in consolidation, where positive macro catalysts fail to translate into sustained upside. 

After briefly testing $89,000 on cooler-than-expected U.S. inflation data, bitcoin slid back toward the $84,000 range, extending a correction now entering its second month. The pattern has become familiar: sharp, data-driven rallies followed by quick retracements as sellers defend resistance below $90,000.

Macro signals offer mixed support. November CPI eased to 2.7% year over year, with core inflation at 2.6%, strengthening the case for eventual Federal Reserve rate cuts in 2026. That backdrop helped spark the intraday rally. Yet rising U.S. unemployment and uneven job growth complicate the outlook, reinforcing expectations that the Fed will move cautiously. Markets appear reluctant to price in aggressive easing.

A key drag remains U.S.-listed spot Bitcoin ETFs, which have shifted from consistent inflows to net redemptions. The outflows remove a stabilizing bid that previously absorbed sell pressure, making breakouts harder to sustain even on positive news.

Technically, the bitcoin price is range-bound. Resistance sits just below $90,000, while support near $84,000 is weakening. A decisive break lower could open a move toward the $72,000–$68,000 zone, where analysts expect stronger demand.

Extreme fear readings suggest potential undervaluation, but near-term momentum still favors sellers.

At the time of writing, the bitcoin price is dancing around the $88,000 level.

This post Bitcoin Price Will Jump to $143,000 Next Year, Says Citi Bank first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

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Bitcoin Magazine

Bitcoin Price Crashes to $84,000 – Is $70,000 Next?

The bitcoin price dropped sharply today after a brief pump near $90,000, sliding to $84,544 as the price sell-off continued into its second month. 

Bitcoin lost 2% over the past 24 hours. It remains 5% below its seven-day high of $89,220 and hovers near the week’s low of $84,596. Trading volume reached $56 billion. Bitcoin’s market capitalization stands at $1.69 trillion. The circulating supply is roughly 19.96 million BTC out of a total 21 million, according to Bitcoin Magazine Pro data. 

The drop follows a brief rally that earlier saw the Bitcoin price test $89,000. The surge came after the U.S. released new Consumer Price Index data. Inflation rose 2.7% year over year in November, lower than expected. Core CPI, which excludes food and energy, fell to 2.6%, the lowest since early 2021.

Bitcoin jumped from intraday lows near $86,000 to challenge $89,000. Traders viewed the cooler inflation report as a potential signal for looser Federal Reserve policy in 2026. CME FedWatch data suggested slightly higher odds of a rate cut by March, though January moves remain unlikely.

The rally did not last. The bitcoin price failed to break $90,000 and slid to $84,4000. This pattern is familiar: sharp spikes followed by quick retracements.

What’s dragging down the bitcoin price?

A persistent challenge is U.S.-listed spot Bitcoin ETFs. These funds, once a major source of demand, have seen net redemptions. The outflows remove institutional support that previously helped stabilize the price. Without consistent ETF inflows, breakouts above $89,000 are harder to sustain.

Other economic indicators add uncertainty. Recent labor market data showed U.S. unemployment rising to 4.6%, its highest since 2021. Job growth remains uneven. The mixed signals complicate Federal Reserve policy, suggesting a cautious approach despite easing inflation.

Political factors add to market complexity. President Donald Trump has publicly urged lower interest rates and suggested nominating a Fed chair favoring aggressive easing. Markets have largely treated the comments as noise, but the statements add a variable to the macro picture.

Technically, the bitcoin price is consolidating rather than trending. Resistance forms just below $90,000. Supply above this level remains strong, held by investors who bought during prior rallies. 

Analysts at Bitwise recently suggested Bitcoin could break its historical four-year cycle. The firm noted BTC might reach new all-time highs in 2026 with lower volatility and reduced correlation to equities.

The Bitcoin Fear and Greed Index currently sits at 17/100, signaling extreme fear. Historically, readings in this range have coincided with undervaluation. Contrarian investors see potential buying opportunities, though sentiment remains cautious.

Is $70,000 next? 

Technical analysts from Bitcoin Magazine wrote earlier this week that the $84,000 support level is under pressure. If the bitcoin price falls below this point, it could test the $72,000 to $68,000 zone. Initial bounces are expected, but a break below $84,000 could trigger faster declines toward $70,000.

Bitcoin’s price may drop to the $72,000–$68,000 support zone after breaking the $84,000 level, with bears currently in control. A strong bounce is likely from that lower zone, potentially retesting $84,000, though the 4-Year Cycle suggests further downside could occur later in 2026.

Resistance extends from $94,000 to $118,000. Bulls will need substantial buying volume to break above these levels, per Bitcoin Magazine analysts. 

Short-term momentum favors sellers. Last week, the Bitcoin price closed the weekly candle in red, failing to sustain gains near $94,000. Bears are well-positioned to push prices lower this week. 

At the time of writing, the bitcoin price is $84,812. Trading volume reached $56 billion. Bitcoin’s market capitalization stands at $1.69 trillion. The circulating supply is roughly 19.96 million BTC out of a total 21 million, according to Bitcoin Magazine Pro data. 

This post Bitcoin Price Crashes to $84,000 – Is $70,000 Next? first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

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Bitcoin Magazine

BitGo Enables Lightning Network Payments Directly from Custody

BitGo, a digital asset infrastructure company, announced it now offers Bitcoin Lightning Network access directly from its qualified custody platform. The move makes it one of the first companies to provide Lightning payments for institutional custody.

The service aims to give clients faster and cheaper Bitcoin transactions while keeping institutional security standards intact. It builds on BitGo’s earlier self-custody Lightning solution.

The new offering is powered through a partnership with Voltage, a Lightning Network infrastructure provider. Clients can now use Lightning without running their own nodes or managing keys. BitGo and Voltage handle infrastructure, channels, liquidity, and key management.

Through simple APIs, clients can create wallets, send payments, generate invoices, and track transactions. The platform integrates fully with BitGo’s existing wallet infrastructure, policies, and permissions.

Enterprises adopting Lightning usually face challenges like maintaining nodes, channels, liquidity, and keys. BitGo removes these hurdles. Institutions can now access Lightning with minimal setup and zero operational overhead.

BitGo, along with Ripple, Circle, Fidelity Digital Assets, and Paxos, received conditional approval from the OCC to become federally chartered national trust banks.

This shift from state to federal oversight allows them to offer nationwide fiduciary and digital asset custody services, enhancing regulatory clarity, institutional confidence, and the mainstream adoption of cryptocurrencies.

Lightning Network hits an all-time high

This move comes as Bitcoin’s Lightning Network hits a new all-time high of 5,637 BTC in capacity, driven largely by institutional inflows even as broader user adoption and node growth lag. 

Data from AMBOSS shows the surge, concentrated in November and December, surpasses the previous peak from March 2023, signaling renewed confidence among major exchanges like Binance and OKX, which have added significant BTC to Lightning channels.

 Despite rising capacity, the network’s number of nodes and channels remains below historical highs, highlighting a gap between capitalization and widespread use. 

The increase coincides with ecosystem developments, including Tether’s $8 million investment in Lightning-focused startup Speed and Lightning Labs’ release of Taproot Assets v0.7, enabling reusable addresses, auditable asset supplies, and larger, more reliable transactions. 

These upgrades position the Lightning Network as more than a micropayment system, offering potential for higher-value transfers that leverage Bitcoin’s security, speed, and low fees while expanding real-world financial applications on the network.

“By offering institutional access to Lightning directly from custody, we are allowing our clients to focus on innovation instead of infrastructure,” said Mike Belshe, BitGo CEO and co-founder. “We are combining the speed and lower transaction costs of Lightning with the trusted security of BitGo to make bitcoin practical for everyday payments.”

This post BitGo Enables Lightning Network Payments Directly from Custody first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

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Bhutan Pledges Up to 10,000 Bitcoin to Build New Mega-City

Bhutan has committed up to 10,000 bitcoin to support the long-term development of Gelephu Mindfulness City (GMC), marking one of the most ambitious sovereign uses of bitcoin for national infrastructure and economic development to date.

The Himalayan kingdom unveiled the Bitcoin Development Pledge this week, allocating a portion of its sovereign bitcoin holdings — valued at roughly $860 million to $1 billion at current prices — to back the new special administrative region in southern Bhutan. 

Officials emphasized that the allocation is intended to preserve capital over the long term rather than fund near-term spending through asset sales.

Instead, Bhutan is exploring mechanisms such as collateralized lending, treasury and yield strategies, and intentional long-term holding to finance infrastructure and development while maintaining exposure to bitcoin’s potential appreciation. 

Final decisions on how the assets will be deployed are expected in the coming months, according to the government.

Gelephu Mindfulness City is central to Bhutan’s broader effort to diversify its economy beyond hydropower and tourism, while remaining aligned with the country’s development philosophy centered on sustainability and social well-being. 

The project, launched in 2024, is designed as a future economic hub focused on finance, technology, green energy, healthcare, agriculture, and high-value tourism.

The city spans roughly 1,544 square miles — about 10% of Bhutan’s territory — near the Indian border.

Bitcoin as a commitment to Bhutan’s youth

King Jigme Khesar Namgyel Wangchuck announced the bitcoin commitment during his National Day Address, framing it as a generational investment aimed at creating quality jobs and opportunities for Bhutan’s youth.

“As your King, I must ensure that every Bhutanese is a custodian, stakeholder, and beneficiary of GMC,” he said. “This commitment is for our people, our youth, and our nation.”

A new land policy associated with the project will treat landowners as shareholders in the city’s development, ensuring citizens across all regions share in the economic upside. Since much of the land involved is state-owned, the government says the benefits will be broadly distributed nationwide.

Bhutan’s bitcoin holdings stem from years of state-backed mining operations powered by surplus hydroelectric energy. Beginning around 2019–2020, the country quietly converted excess renewable power into digital assets, positioning itself as one of the earliest sovereign bitcoin miners. Officials say the strategy allows Bhutan to monetize unused energy capacity without increasing environmental impact.

Estimates of Bhutan’s total bitcoin reserves vary by analytics provider, ranging from roughly 6,000 to more than 11,000 BTC, placing the kingdom among the world’s largest sovereign bitcoin holders. 

The bitcoin pledge builds on a broader national blockchain strategy already underway. Bhutan has rolled out crypto-enabled payments across its tourism sector through partnerships with DK Bank and Binance Pay, allowing visitors to pay with more than 100 digital assets at hotels, airlines, and local merchants. More than 100 tourism-related businesses now accept crypto payments.

The country has also introduced TER, a sovereign-backed digital token reportedly supported by physical gold reserves, and recently anchored its national digital identity system on Ethereum, enabling nearly 800,000 citizens to access public services through blockchain-based verification.

GMC itself has designated bitcoin and two other crypto as strategic reserve assets, making it one of the earliest jurisdictions to formally hold multiple cryptocurrencies at the municipal or regional level. 

Green Digital Ltd., the infrastructure firm leading GMC’s development, is focused on green energy-powered data centers and blockchain infrastructure as part of the city’s long-term vision.

Earlier this month, Bhutan also entered a multi-year partnership with Cumberland DRW to support bitcoin reserve management, sustainable mining expansion, and broader digital asset infrastructure, including potential stablecoin initiatives.

At current bitcoin prices, 10,000 BTC would be worth $877,500,000.

CoinDesk reporting helped with the background of this article.  

This post Bhutan Pledges Up to 10,000 Bitcoin to Build New Mega-City first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

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Bitcoin Magazine

Celebrating One Year of Hashrate Redirect™: How Abundant Mines Redefined Uptime and Protected Millions in Client Bitcoin Rewards

Hood River County, Oregon – December 16th, 2025 – This month last year, Abundant Mines quietly began to launch a feature that would go on to change how the bitcoin mining industry defines performance. Today, the company is celebrating the one-year anniversary of Hashrate Redirect, a pioneering system that ensures clients continue earning bitcoin even when their machines are offline.

For too long, mining providers have misled customers with uptime metrics that measure whether a facility has power, not whether a machine is actually hashing. A rig could be powered off, broken, or awaiting repairs and still count toward a provider’s claimed “98% uptime.” The result is lost bitcoin, lost revenue, and lost trust.

Abundant Mines set out to correct this.

“When we introduced Hashrate Redirect a year ago, we didn’t make a big announcement. We simply built the solution we wished had existed when we were clients,” said Beau Turner, Co-Founder and CEO of Abundant Mines. “Twelve months later, the results speak for themselves: our clients continue earning even when their machines are offline, and the industry standard for uptime is shifting toward truth and transparency.”

A Year of Real Results: Uptime That Actually Means Performance

Instead of measuring uptime by whether a building has power or not, Abundant Mines measures rig uptime – the percentage of time an individual machine is hashing and producing bitcoin. When a rig goes offline for repairs, RMA, or maintenance, Hashrate Redirect replaces the lost hashrate with hash from Abundant Mines’ operational fleet.

The loss of hash is tracked immediately, and the redirection happens within days, not at the end of the month or year. The result is a continuous bitcoin revenue stream for clients, even during downtime.

Over the past year, Hashrate Redirect has:

• Protected clients from hours of lost earnings
• Redirected hashrate for machines without interruption
• Preserved significant bitcoin rewards that would otherwise have been missed.

“Hashrate Redirect is simple but powerful,” said Turner. “We give you hash, not cash. Because you’re not mining for credits or refunds, you’re here to earn bitcoin and help secure the network.”

Why Timing Matters: Capturing Bitcoin’s Full Value

Bitcoin’s value is time-sensitive. Block rewards are issued every 10 minutes, and once they’re gone, they’re gone forever. If a rig is offline during a price surge or halving cycle, the lost opportunity can compound into significant missed revenue.

By replacing hashrate continuously, not with delayed end- of -year credit, or even end-of-month credit, Abundant Mines ensures that clients capture the full earning potential of every block, especially during high-value market windows.

“With bitcoin’s price climbing and the network becoming more competitive, uptime precision isn’t just a technical detail. It is the difference between winning and falling behind,” said Turner. “Hashrate Redirect makes sure our clients stay ahead.”

Why Weekly Hashrate Matters More Than One-Time Credits

Most mining providers only offer compensation for downtime once or twice a year, often in the form of a one-time hashrate allocation or bill credit. On paper, this may seem like a fair solution. In reality, it is too little and far too late.

Bitcoin rewards are not static. They are distributed every 10 minutes, and their value changes constantly based on market price and network difficulty. If your machine is offline for weeks or months, those missed rewards cannot be recreated later – even if a provider offers you a lump sum or short burst of extra hashrate at the end of the year.

Abundant Mines takes a different approach. With Hashrate Redirect, we replace any downtime with hashrate from our personal fleet. This means you continue earning bitcoin on a rolling basis, staying aligned with market conditions and capturing opportunities in real time.

This approach matters because:

• Missed blocks are missed forever. Once they’re mined, they cannot be recreated later.
• Network difficulty volatility impacts rewards. Weekly redirection ensures you maximize bitcoin earnings, so that you are not punished for hashing later when difficulty has risen significantly.Compounding matters. Bitcoin earned earlier can be held, deployed, or compounded, creating significantly greater long-term value.

“Timing is everything in bitcoin mining,” said Turner. “By replacing hashrate weekly instead of issuing delayed payouts, we ensure our clients never miss the most valuable moments to earn.”

Setting a Higher Standard

One year after launch, Hashrate Redirect has become more than a feature. It is a new benchmark for performance and a reflection of Abundant Mines’ commitment to transparency, accuracy, and client protection.

“Mining should mean performance, not just power,” Turner said. “Hashrate Redirect has proven that principle for a full year, and we are only getting started.”

About Abundant Mines

Abundant Mines is a premium bitcoin mining and energy infrastructure company based in Oregon. Committed to transparency, reliability, and impact, Abundant Mines designs, builds, and operates advanced mining facilities that align energy abundance with digital value creation. Its mission is to make bitcoin mining more accessible, more dependable, and more profitable for individuals and institutions worldwide.

Media Contact:

[email protected]

www.abundantmines.com 

This post Celebrating One Year of Hashrate Redirect™: How Abundant Mines Redefined Uptime and Protected Millions in Client Bitcoin Rewards first appeared on Bitcoin Magazine and is written by Bitcoin Magazine.

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Bitcoin Magazine

Bitcoin Treasury Companies Are Undervalued

Bitcoin treasury companies have been hit hard by Bitcoin’s disappointing price action throughout 2025. Publicly traded firms holding significant BTC reserves are suffering the most, with leaders like (Micro)Strategy pushing aggressive accumulation amid headwinds—yet most now trade below net asset value, creating a rare opportunity for risk-tolerant strategic investors.

The Bitcoin Treasury Companies Landscape

Not all Bitcoin treasury companies are created equally. Strategy stands apart as the industry standard-bearer, the “Bitcoin among treasury companies,” as it were. The company has maintained its accumulation discipline even as its stock has suffered, recently announcing a $1.44 billion USD reserve specifically designed to pay dividends and debt obligations without forcing Bitcoin sales.

This capital buffer theoretically eliminates the need for excessive dilutive share issuance or forced BTC liquidation, a critical distinction from weaker competitors. Many will likely face shareholder pressure and potential forced selling as their stock prices decline, creating a cascade of supply pressure that could paradoxically benefit the strongest players like MSTR.

Valuation Dynamics of Bitcoin Treasury Companies

The most compelling aspect of current treasury company valuations is that they now trade below net asset value on a per-share basis. In practical terms, you can currently purchase one dollar’s worth of Bitcoin for less than one dollar through treasury company stock. This represents an arbitrage opportunity for investors, though one accompanied by elevated volatility and company-specific risks.

Strategy currently sits at a net asset value premium of less than 1, meaning the company’s market capitalization is below the value of its Bitcoin holdings alone. The upside scenario is striking. If Bitcoin reclaims its previous all-time high around $126,000, Strategy continues accumulating toward 700,000 BTC, and the market assigns even a modest 1.5x to 1.75x net asset value premium, Strategy could approach the $500 region per share.

From Weak to Strong: The Future of Bitcoin Treasury Companies

Examining Strategy’s performance during the previous Bitcoin bear market and overlaying it onto the current cycle reveals eerie alignment. The bar patterns suggest current price levels represent reasonable support, with only a catastrophic final flush justified by Bitcoin weakness providing reason to expect substantially lower levels.

As weaker treasury companies face forced selling, a consolidation thesis emerges, that Strategy and similar strong-positioned players will potentially accumulate cheap Bitcoin from distressed sellers, further concentrating holdings in the most disciplined accumulators. This dynamic mirrors Bitcoin’s own consolidation process, weaker hands sell, stronger hands accumulate, and the asset becomes more concentrated among conviction holders.

Conclusion: Opportunity in Bitcoin Treasury Companies

Bitcoin treasury companies have for the most part delivered disappointing returns in 2025, but this performance has created a window of exceptional opportunity for disciplined investors. At current valuations, Strategy is essentially selling one dollar of Bitcoin for approximately 90 cents, a discount that becomes even more attractive if Bitcoin experiences one final capitulation flush. The probability of this scenario combined with Strategy’s positioned upside creates asymmetric risk-reward worthy of small, carefully-sized positions within aggressive portfolios.

For deeper data, charts, and professional insights into bitcoin price trends, visit BitcoinMagazinePro.com. Subscribe to Bitcoin Magazine Pro on YouTube for more expert market insights and analysis!

Disclaimer: This article is for informational purposes only and should not be considered financial advice. Always do your own research before making any investment decisions.

This post Bitcoin Treasury Companies Are Undervalued first appeared on Bitcoin Magazine and is written by Matt Crosby.

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Bitcoin Price Bleeds Below $89,000 After Grim Weekend 

Bitcoin price endured another grim weekend, bleeding from the low-$92,000 range on Thursday to weekend lows near $87,000 as thin liquidity and sell pressure weighed on risk appetite.

The move below $90,000 came during typically illiquid Sunday trading, amplifying downside volatility as traders positioned cautiously ahead of a dense slate of U.S. economic data and central bank events this week.

At the lows, the bitcoin price was down roughly 7% on the month, continuing a choppy consolidation that has defined price action since October’s all-time high, per Bitcoin Magazine Pro data.

Broader crypto markets showed little sign of strength. 

Major altcoins including Solana, XRP, Dogecoin and Cardano continued to slide, extending double-digit monthly losses and reinforcing bitcoin’s dominance near 57% of total crypto market capitalization. Volumes remained muted, reflecting a lack of conviction rather than outright capitulation.

Macro overhangs remain front and center. In the U.S., traders are bracing for employment data, inflation prints, PMI readings and Fed commentary that could reshape rate expectations. 

Globally, attention is turning to Japan, where the Bank of Japan is widely expected to raise rates later this week — an event that could pressure yen-funded carry trades that have helped support risk assets, including bitcoin, over the past year.

Technically, analysts are watching the mid-$80,000s closely. A sustained break below that zone could invite a deeper correction, while holding it would reinforce the idea that the bitcoin price remains range-bound rather than entering a new bear phase.

How low will the Bitcoin price go? 

Despite the uneasy backdrop, some of the loudest bearish calls are running far ahead of the data. Bloomberg Intelligence strategist Mike McGlone warned this week that the bitcoin price could collapse as much as 90% from its peak, potentially revisiting $10,000 in a future deflationary downturn. 

The forecast echoes prior bearish calls and comes as leveraged long positions continue to unwind, with roughly $230 million in bitcoin longs liquidated over the past 24 hours.

On-chain data, however, tells a far more nuanced story.

Bitcoin Magazine Pro’s Price Forecast Tools — built on network fundamentals rather than sentiment — suggest the market is trading below fair value, not on the brink of structural collapse. 

Aggregated indicators such as CVDD, Balanced Price and the Bitcoin Cycle Master currently point to a fair market value near $106,000, with long-term downside risk clustering closer to the $80,000 range rather than anywhere near five figures.

Historically, these metrics have aligned closely with cycle tops and bottoms, offering a framework that cuts through short-term noise. 

While macro conditions will continue to dictate volatility, on-chain signals suggest the current drawdown looks more like late-cycle consolidation than the start of a generational unwind.

At the time of writing, the bitcoin price is $89,317.

This post Bitcoin Price Bleeds Below $89,000 After Grim Weekend  first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

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Coinbase is About to Launch Prediction Markets and Tokenized Stocks: Report

Coinbase is reportedly preparing to launch its own prediction markets, powered by U.S.-based operator Kalshi, in a move that could expand the types of assets available on the exchange amid cooling investor interest in cryptocurrencies, according to reporting from Bloomberg and CNBC.

The announcement is expected to come next week, coinciding with Coinbase’s “Coinbase System Update” showcase on Dec. 17. While the exchange declined to confirm specifics, it encouraged users to tune into the livestream for updates.

Rumors of the new prediction markets have been circulating for nearly a month. In mid-November, tech researcher Jane Manchun Wong shared a screenshot of what appeared to be Coinbase’s prediction markets dashboard. 

The Information first reported the planned launch on Nov. 19, and Bloomberg later cited a source saying the event would also feature the rollout of tokenized stocks.

Coinbase as an ‘everything’ exchange

Coinbase’s moves align with CEO Brian Armstrong’s long-stated vision of building an “everything exchange” — a single platform offering access to crypto tokens, tokenized equities, and event-based contracts. 

Armstrong told investors in May that Coinbase aims to become a leading financial services app within the next decade.

The exchange is accelerating these initiatives amid rising competition from firms such as Robinhood, Gemini, and Kraken

Over the past year, these platforms have expanded tokenized stock offerings outside the U.S. and explored prediction markets, reflecting growing demand for alternative trading instruments.

The timing also comes as investor sentiment toward digital assets has cooled. A wave of liquidations in highly leveraged positions in mid-October triggered a crypto market pullback, prompting some investors to shift capital into safer assets. 

For Kalshi, the partnership marks another step in its strategy to integrate event contracts into mainstream trading platforms. 

Earlier this year, the company embedded its prediction markets into Robinhood, and it is reportedly in discussions with other brokers, including those in crypto, to expand its reach.

Prediction markets let users speculate on outcomes ranging from elections to sports games, and they have grown increasingly popular over the past year. Traditional exchanges and crypto platforms alike are now exploring them as a new way to engage traders. 

Gemini recently received approval to roll out its own prediction markets, while Crypto.com has partnered with the Trump Media & Technology Group on similar initiatives.

Coinbase’s planned in-house tokenized stock offerings would put it on par with competitors like Robinhood and Kraken, which currently offer similar products outside the U.S.

This post Coinbase is About to Launch Prediction Markets and Tokenized Stocks: Report first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

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Five Crypto Firms Win Conditional Approvals as National Trust Banks, Including Fidelity and BitGo

The U.S. Office of the Comptroller of the Currency (OCC) has granted conditional approvals for five digital asset firms — Ripple, Circle, Fidelity Digital Assets, BitGo, and Paxos — to become federally chartered national trust banks, marking a major milestone in the integration of cryptocurrency into traditional finance.

The approvals, announced Friday, allow the firms to convert from state-level trust charters to federal status, subject to meeting the OCC’s conditions. 

Once finalized, these institutions will join roughly 60 other national trust banks regulated by the OCC, gaining the ability to offer fiduciary and custody services nationwide. 

Unlike larger national banks, trust banks cannot accept cash deposits or make loans, but they can hold and manage customers’ digital assets.

‘Huge news’ for crypto

Circle, issuer of the $78 billion USDC stablecoin, said the charter would enhance the safety and regulatory oversight of its reserves while enabling fiduciary digital asset custody for institutional clients.

CEO Jeremy Allaire emphasized that the federal charter would provide “greater clarity and confidence” to institutions building on Circle’s platform as stablecoins gain mainstream adoption.

Paxos, known for PYUSD and the consortium-backed Global Dollar (USDG), said federal oversight would allow businesses to issue, custody, trade, and settle digital assets with clarity and confidence. 

The firm, which has operated under a New York Department of Financial Services (NYDFS) charter since 2015, first applied for a federal charter in 2020.

BitGo, a South Dakota–based crypto custodian, said the federal charter would allow it to expand services nationwide, including trading, staking, stablecoin, and treasury offerings for institutions. BitGo has also filed to go public, reporting $4.19 billion in revenue for the first half of 2025, up from $1.12 billion during the same period in 2024.

The approvals reflect a broader trend toward federal oversight of digital assets, coming after Anchorage Digital became the first federally chartered crypto bank in the U.S. Other firms, including Coinbase, Bridge (owned by Stripe), and Crypto.com, have also applied for federal charters.

OCC Comptroller Jonathan V. Gould emphasized that new entrants into the federal banking sector benefit consumers, foster competition, and promote innovation.

 “The OCC will continue to provide a path for both traditional and innovative approaches to financial services to ensure the federal banking system keeps pace with the evolution of finance and supports a modern economy,” Gould said.

This post Five Crypto Firms Win Conditional Approvals as National Trust Banks, Including Fidelity and BitGo first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

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9 Ways MSCI’s Proposed Digital Asset Rule Could Undermine Index Neutrality

A major rule change is being considered by MSCI, one of the most influential index providers in global markets. If adopted, it would materially alter how public companies that hold digital assets—particularly Bitcoin—are classified and included in major equity indexes.

For companies, investors, asset managers, and anyone who depends on index-based benchmarks, this proposal raises fundamental questions about how markets define operating businesses and what role balance sheets should play in index eligibility.

Join the call for MSCI to withdraw its digital asset exclusion rule.

Here’s what’s at stake—and why it matters.

1. MSCI Is Proposing a New 50% Balance-Sheet Threshold

At the center of the proposal is a simple rule:

If digital assets make up 50% or more of a company’s total assets, that company would be excluded from MSCI’s Global Investable Market Indexes.

MSCI’s rationale is that crossing this threshold allegedly changes the company’s “primary business,” making it more fund-like rather than operational.

This single ratio would override all other indicators of what the company actually does.

2. The Proposal Misclassifies Operating Companies as Investment Funds

The core objection is straightforward:
holding Bitcoin on a balance sheet does not transform an operating company into an investment fund.

• Operating companies generate revenue from products and services
• They employ people, invest in R&D, and serve customers
• Treasury assets exist to support long-term capital strategy

By contrast, investment funds exist solely to manage portfolios for return.

Treating these two structures as equivalent—based on a balance-sheet ratio alone—collapses a distinction that has long been foundational to corporate and securities law.

If your organization relies on clear, fundamentals-based definitions of operating companies, this misclassification matters. Bitcoin For Corporations is asking MSCI to withdraw the proposal and engage on a more principled framework. You can add your name to the open letter here.

3. Treasury Strategy Does Not Redefine Core Business Activity

A company can change how it stores excess capital without changing what it does.

• A manufacturer that holds cash remains a manufacturer
• A software firm holding foreign currency remains a software firm
• A company holding Bitcoin as treasury reserve remains an operating company

Treasury allocation is a capital management decision, not a change in business model.

4. This Would Be a Radical Departure From Decades of Index Practice

Historically, index classification has been driven by operational reality, not asset composition alone.

Primary business determination has relied on:

• Revenue sources
• Earnings contribution
• Ongoing commercial activity

This proposal replaces that holistic approach with a single market-price-driven metric on the asset side of the balance sheet—something never applied consistently across asset classes before.

5. Digital Assets Are Being Singled Out—Uniquely

Under the proposal:

• A company with 51% of assets in Bitcoin → excluded
• A company with 51% in real estate → included
• A company with 51% in equities or commodities → included

No equivalent rule exists for other treasury assets.

This lack of neutrality directly conflicts with the principles that global indexes are supposed to uphold.

6. The Proposal Conflicts With Core Index Principles

MSCI’s benchmarks are built on three foundational ideas:

• Neutrality – no asset-class favoritism
• Representativeness – reflecting real economic activity
• Stability – avoiding unnecessary churn

A rule that reclassifies companies based on volatile market prices undermines all three.

7. The Rule Would Introduce Structural Instability Into Indexes

Consider a company with:

• 45% of assets in digital form → eligible
• No operational change
• Normal market appreciation pushes it to 51%

Under the proposal, that company would suddenly be excluded—despite:

• No change in revenue
• No change in operations
• No change in business strategy

This creates a scenario where companies could flip in and out of indexes purely due to price movement, forcing unnecessary rebalancing, costs, and tracking error for index-linked funds.

This kind of mechanical instability would impose real costs on index-tracking funds, issuers, and long-term investors—without improving market clarity. That’s why companies and market participants are urging MSCI to withdraw the proposal and revisit it with industry input. Join the call for MSCI to withdraw this rule proposal, and add your signature to the open letter here.

8. A More Robust Alternative Already Exists

The issue is not classification—it’s how classification is done.

A principles-based, multi-factor framework would evaluate:

• Revenue and earnings mix
• Legal and regulatory status
• Core corporate activities (employees, R&D, capex)
• Public disclosures and stated strategy

This approach reflects the entire business, not a single fluctuating ratio.

9. The Coalition’s Ask Is Clear and Constructive

Market participants are calling for a two-step solution:

1. Withdraw the current proposal due to its structural flaws
2. Engage with the market to develop a neutral, principles-based framework that preserves index integrity

The goal is not special treatment—but consistent treatment aligned with long-standing market norms.

Why This Matters

Indexes are not academic exercises. They:

• Guide trillions of dollars in capital allocation
• Shape passive investment flows
• Influence cost of capital for public companies

If index rules become arbitrary, unstable, or asset-specific, they stop reflecting the real economy—and start distorting it.

Final Thought

If your organization depends on fundamentals-based equity benchmarks, this proposal affects you—whether or not you hold digital assets today.

Indexes only work when they remain neutral, stable, and grounded in operating reality. Market participants are asking MSCI to withdraw the proposed digital asset rule and work toward a principles-based alternative.If you or your organization depend on fair and consistent equity benchmarks, adding your signature to the open letter helps ensure those standards are preserved.

Index integrity relies on clear principles, not price-driven thresholds.

Engagement now helps ensure global benchmarks remain neutral, stable, and representative for everyone who relies on them.

Disclaimer: This content was prepared on behalf of Bitcoin For Corporations for informational purposes only. It reflects the author’s own analysis and opinion and should not be relied upon as investment advice. Nothing in this article constitutes an offer, invitation, or solicitation to purchase, sell, or subscribe for any security or financial product.

This post 9 Ways MSCI’s Proposed Digital Asset Rule Could Undermine Index Neutrality first appeared on Bitcoin Magazine and is written by Nick Ward.

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Klarna Partners With Privy to Explore Use of Crypto Wallets

Just weeks after announcing a stablecoin, Swedish fintech giant Klarna is taking another step into crypto. The company has teamed up with Privy, a wallet infrastructure platform owned by Stripe, to explore digital asset solutions for its users.

The partnership will focus on research and development of crypto wallet features, the company said. The two aim to make it easier for everyday users to store, use, and send digital assets. The move builds on the company’s recent launch of KlarnaUSD, a U.S. dollar-backed stablecoin issued on the Tempo blockchain.

“Millions already trust Klarna to manage everyday spending, saving, and shopping,” said Sebastian Siemiatkowski, CEO and co-founder. “That puts us in a unique position to bring crypto into the financial lives of normal people, not just early adopters. With Privy, we plan to build products that feel as intuitive as any other Klarna feature.”

KlarnaUSD was launched with Tempo and Bridge, a Stripe-backed stablecoin infrastructure provider. 

The token is live on Tempo’s testnet and expected to launch on mainnet in 2026. The fintech giant said the stablecoin could reduce global cross-border payment costs, currently estimated at $120 billion annually.

100 million accounts coming to crypto via Klarna

Privy powers over 100 million accounts for more than 1,500 developers. The platform supports crypto-native applications like OpenSea and Hyperliquid. 

Henri Stern, CEO and co-founder of Privy, said the partnership will allow users to hold a wide variety of digital assets, trade safely, and transact with friends anywhere in the world.

“We’re proud to partner with world-class fintechs like Klarna, providing the secure, enterprise-ready infrastructure they need,” Stern said. “Privy aims to be the backbone for any business that wants to harness the exciting capabilities crypto and stablecoins offer.”

The initiative reflects a growing trend. Traditional fintechs are now testing ways to integrate crypto tools into everyday consumer finance. The company said any future wallet or crypto product would require the necessary regulatory approvals before launch.

Venture capital firm a16z estimates that 716 million people globally hold cryptocurrencies. Between 40 million and 70 million transact with crypto each month. That figure grows by roughly 10 million users a year.

Klarna’s push into crypto marks a sharp turn for the company. CEO Siemiatkowski was once a vocal skeptic of digital currencies. 

He said the market’s maturity and Klarna’s global reach now justify this entry. Klarna serves 114 million customers and processes $112 billion in annual gross merchandise volume.

The company plans to explore further crypto initiatives. A blog post on Thursday hinted at a new announcement “in a week or so,” suggesting more developments are coming soon.

This post Klarna Partners With Privy to Explore Use of Crypto Wallets first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

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65% of Corporate Bitcoin Treasuries Are Underwater: Report

Corporate Bitcoin treasuries faced mark-to-market losses in November, according to an exclusive Corporate Adoption Report from Bitcoin Treasuries. 

The report, covering more than 100 companies, offers a systematic look at how last month’s price drop affected public company holdings.

Bitcoin briefly fell below $90,000 in late November. The decline pushed many 2025 buyers into the red. Of the 100 companies for which cost basis is measurable, about two-thirds now sit on unrealized losses at current prices, per the report.

Despite the volatility, large balance sheets continued to dominate net Bitcoin buying. Strategy, Strive, and a small cohort of high-conviction buyers accounted for most net additions. 

Strategy alone represented roughly 75% of net new buying after sales.

Public Bitcoin treasury equities remain weak versus BTC and broad indices. Still, a minority of companies delivered at least 10% gains over the past 6–12 months. 

Early signs of corporate Bitcoin selling also emerged. At least five companies reduced BTC exposure in November. Sequans led the group, selling roughly one-third of its holdings. While small in aggregate, these moves suggest some management teams are willing to crystallize losses or de-risk when volatility spikes.

Quarterly Bitcoin accumulation is slowing, but not collapsing. Q4 2025 is on track for roughly 40,000 BTC in net additions to public company balance sheets. This is below the last four quarters but broadly in line with Q3 2024, as companies normalize to a slower, more selective accumulation pace.

In November, public and private treasuries purchased, added, or disclosed over 12,644 BTC in November and the total BTC held across all tracked entities surpassed 4 million by month’s end. 

Bitcoin purchases

Big treasuries know for their bitcoin buying continue to dominate purchases. Strategy added 9,062 BTC across three transactions in November, per the report.

Its largest buy, 8,178 BTC, came on Nov. 17. Strategy ended the month with 649,870 BTC, worth about $59 billion. Currently, the company has 660,624 after some December purchases. 

Strive added 1,567 BTC at an average price of $103,315 per BTC in November. The purchase brought its month-end holdings to 7,525 BTC, or $684 million. The company funds its Bitcoin strategy primarily through perpetual preferred equity.

Mining companies remain significant players. Cango and Riot added 508 BTC and 37 BTC, respectively, from mining operations. American Bitcoin added 139 BTC through combined purchase and mining strategies. 

Per the report, mining companies now account for 12% of public company BTC holdings.

Bitcoin selling and rebalancing

Sales were limited but notable. As mentioned earlier, Sequans sold nearly one-third of its holdings, to reduce convertible debt. Hut 8 reduced holdings by 389 BTC. KindlyMD and Genius Group also trimmed exposure.

Some companies added small amounts even amid the downturn. DDC Enterprise Limited picked up 100 BTC during the pullback. 

Metaplanet continued “additional purchase” filings on the Tokyo exchange. ETF flows returned to net inflows after a month of redemptions.

The data suggests a barbell pattern: small distressed sellers versus programmatic buyers and disciplined treasuries. Investors see BTC increasingly used as collateral or for cash flow, rather than just as a speculative asset.

Global trends and future outlook

Corporate Bitcoin holdings are increasingly global. U.S. companies dominate the top 20, but Japan, China, Europe, and other regions are growing. 

Non-U.S. public company holdings rose 3,180 BTC from two months prior, now representing about 9% of all public company BTC. Analysts say this geographic diversification reduces regulatory risk.

Despite November’s volatility, corporate adoption of Bitcoin continues. Large treasuries are still buying aggressively. The quarterly pace of accumulation is slower than earlier in 2025, the report noted, but steady growth persists. 

Those interested in reading the full report can do so below:

This post 65% of Corporate Bitcoin Treasuries Are Underwater: Report first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

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Pardoning the Samourai Developers Would Restore Legal Clarity and Protect Non-Custodial Code

The Samourai Wallet matter raises a fundamental question about how the United States treats non-custodial software and the developers who create it. Keonne Rodriguez and William Lonergan Hill did not operate a financial service or handle customer assets. They wrote and maintained software that allowed users to construct collaborative Bitcoin transactions in a privacy-preserving way. Throughout the tool’s entire lifecycle, users controlled their own keys, initiated their own transactions, and never relied on Samourai or its developers to transmit or safeguard value. The distinction between a custodial service and a non-custodial tool is not a technicality; it is the core boundary that the Bank Secrecy Act, FinCEN guidance, and decades of regulatory practice use to distinguish software authors from regulated financial intermediaries.

This point was reinforced by FinCEN itself. In an internal analysis, the agency concluded that Samourai’s architecture did not constitute money transmission because no third party took possession or control of user funds. That conclusion was never disclosed to the defense while the prosecution advanced a theory that required the opposite: that building software which users employ for privacy is functionally equivalent to operating a financial institution. When that analysis finally surfaced, it confirmed what has long been understood across the industry and within the regulatory community—that non-custodial tools fall outside the BSA’s money-transmitter framework because there is no transfer of value by a third party. The case ultimately treated the developers as if they were responsible for the independent actions of users, even though they had no role in executing, intermediating, or approving any transaction. Some individuals did misuse the tool, as happens with any privacy or security technology, but the law has never equated misuse with liability for the creators. We do not treat the authors of encryption libraries, VPN protocols, or email clients as participants in unlawful activity simply because bad actors rely on those tools. Collapsing the distinction between developing a tool and operating a service would introduce an untenable level of risk for anyone building privacy-enhancing or security-critical software.

There is also an important speech component. Courts have consistently recognized that code is expressive, and publishing open-source software is an act of communication. When publication is treated as evidence of “operation,” the legal boundary between authorship and conduct becomes blurred in a way that threatens a wide range of legitimate technologies. Any precedent suggesting that developers are responsible for unforeseeable downstream use would have immediate consequences for cryptography, cybersecurity research, and open-source work more broadly.

Rodriguez and Hill ultimately accepted plea agreements in the face of substantial sentencing exposure, even though government records undermined the central regulatory theory of the case. Their convictions now rest on a framework that is at odds with established guidance and with the direction in which federal policy has since moved. A pardon would bring the legal outcome back into alignment with the underlying facts: this was software development, not money transmission, and the individuals involved should not bear criminal liability for writing code that users executed independently.

This case has already had a measurable chilling effect on developers working on privacy and security tools in the United States. Leaving the convictions in place would discourage responsible innovation and push critical work to jurisdictions that do not share our commitment to open research and transparent development. A pardon would correct a clear misapplication of federal law, protect the integrity of long-standing distinctions in financial regulation, and reaffirm that publishing non-custodial software is not—and should not become—a criminal act.

Disclaimer – This is a guest contribution by Zack Shapiro, originally published by the Bitcoin Policy Institute (BPI). The views and opinions expressed are solely those of the author and do not necessarily reflect the views of BTC Inc or Bitcoin Magazine.

This post Pardoning the Samourai Developers Would Restore Legal Clarity and Protect Non-Custodial Code first appeared on Bitcoin Magazine and is written by Zack Shapiro.

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Bitcoin Is a Relief, Not a Theory: Pakistan’s Case for Crypto Adoption

At the Bitcoin MENA conference, Bilal Bin Saqib, CEO of the government-backed Pakistan Crypto Council and chief advisor to Pakistan’s finance minister, delivered a message that framed bitcoin not as a speculative asset, but as a practical solution to structural economic problems facing millions of people in Pakistan.

One of Bin Saqib’s most striking takeaways was how grounded his argument in lived reality. In Pakistan, bitcoin is less about ideology and more about necessity. 

Bitcoin as a financial relief

As Bin Saqib put it, for many Pakistanis “bitcoin is not theory, it’s a relief,” a response to problems traditional financial systems have failed to solve for decades.

He pointed first to savings. Pakistan’s currency has lost more than half its value over the past five years, eroding purchasing power for ordinary citizens. In that environment, Bin Saqib argued, people are not looking for explanations of monetary theory. They are looking for protection.

Bitcoin, he said, provides a way to store value outside inflation driven by political decisions, money printing and currency mismanagement. “You don’t need a lecture,” he noted. “You need a hedge.”

Access was the second pillar of his case. Despite Pakistan being home to roughly 240 million people, more than 100 million remain unbanked. 

For this population, traditional finance has simply never arrived. Bitcoin, according to Bin Saqib, offers a financial identity without the need for permission, paperwork or intermediaries that may never open the door. 

That permissionless access, he argued, is especially powerful for young people encountering true financial ownership for the first time.

The third pillar was cross-border earnings. Pakistan has one of the largest freelance workforces in the world, yet freelancers often struggle to receive international payments quickly, cheaply and transparently. 

Bitcoin and blockchain-based payment rails enable Pakistani workers to get paid globally without friction, delays or excessive fees. For many, this has meant a direct connection to the global economy for the first time.

Bin Saqib tied these grassroots use cases to a broader national strategy. Pakistan, he said, is not trying to “chase the future” but to build a new one. With roughly 70% of the population under the age of 30, the country cannot rely on outdated economic models. 

Digital assets, and bitcoin in particular, are being viewed as infrastructure rather than speculation—new financial rails for the Global South.

He outlined his mandate since being appointed seven months ago: to transform one of the world’s largest unregulated crypto markets into a compliant, investment-friendly ecosystem. 

Pakistan has already moved to establish a virtual asset regulatory framework, issue provisional licenses for exchanges, and develop regulatory sandboxes for mining, tokenization and fintech.

The goal, Bin Saqib said, is to bring activity onshore rather than push it underground, protecting users without suffocating builders.

Bin Saqib’s discussion of energy 

Energy played a central role in the discussion. Pakistan paradoxically suffers from both power shortages and massive excess capacity, paying for electricity that goes unused. 

Bin Saqib described bitcoin mining and artificial intelligence as tools to convert that “wasted economic oxygen” into productive output. 

Every unused megawatt, he argued, could be turned into bitcoin mining or AI compute, effectively transforming stranded energy into digital exports.

In that framework, bitcoin mining becomes less about consumption and more about industrial renewal. 

Rather than exporting only commodities or labor, Pakistan could export compute—what Bin Saqib called one of the most valuable resources of the 21st century. He framed this not as a narrow energy policy, but as part of a broader industrial rebirth.

Looking ahead, Bin Saqib predicted that the next wave of bitcoin adoption will not be led by Wall Street, but by emerging markets where economic pain is real and the upside is massive. 

This post Bitcoin Is a Relief, Not a Theory: Pakistan’s Case for Crypto Adoption first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

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CFTC Launches Pilot Program Allowing Bitcoin To Be Used as Collateral In Derivatives Markets

The Commodity Futures Trading Commission announced the launch of a U.S. digital assets pilot program that will allow bitcoin, ethereum and the stablecoin USDC to be used as collateral in regulated derivatives markets, marking another major policy shift in how U.S. regulators approach tokenized assets.

The move includes new guidance for tokenized collateral, a limited no-action framework for futures commission merchants (FCMs), and the withdrawal of legacy restrictions that the agency said are no longer relevant following passage of the GENIUS Act.

Acting CFTC Chair Caroline Pham said the program is designed to expand the use of digital assets in regulated markets while maintaining oversight and customer protections.

“Americans deserve safe U.S. markets as an alternative to offshore platforms,” Pham said in a statement. “Today, I am launching a U.S. digital assets pilot program for tokenized collateral that establishes clear guardrails to protect customer assets and provides enhanced CFTC monitoring and reporting.”

Bitcoin and other crypto as a pilot

Under the pilot, FCMs will be temporarily allowed to accept a narrow set of digital assets like Bitcoin as customer margin, according to a CFTC announcement. 

During the first three months of participation, firms will be required to submit weekly reports to the CFTC detailing the total amount of digital assets held in customer accounts, broken out by asset and account class. 

Companies must also notify regulators of any material incident involving the use of digital collateral.

The agency said the reporting requirement is intended to give staff real-time insight into operational risks while allowing firms controlled access to tokenized collateral.

Last week, the CFTC allowed federally regulated spot crypto trading in the U.S. for the first time, with Bitnomial set to launch its exchange next week under CFTC oversight. 

Pham said CFTC-registered venues will list spot crypto products, enabling retail and institutional traders to access spot, futures, options, and perpetuals on a single regulated platform.

Alongside the pilot program, the CFTC’s Market Participants Division, Division of Market Oversight and Division of Clearing and Risk issued formal guidance on how tokenized assets should be evaluated within existing regulatory frameworks.

The guidance emphasizes that CFTC rules are “technology neutral” and that tokenized assets should be assessed individually under existing policies rather than treated as a separate asset class.

The framework applies to tokenized real-world assets such as U.S. Treasuries and money market funds. It outlines standards for legal enforceability and things like custody and control.

The agency also issued a no-action position for FCMs that accept non-securities digital assets as margin, including payment stablecoins. 

The relief allows firms to incorporate qualifying digital assets into customer accounts while clarifying how capital and segregation rules apply under the new regime.

Crypto industry applause

The CFTC formally withdrew Staff Advisory No. 20-34, which previously restricted how virtual currencies could be held in customer accounts. The advisory had been in place since 2020 and had limited the operational use of digital assets as collateral.

The agency said developments in digital markets and the enactment of the GENIUS Act made the advisory obsolete.

Crypto and fintech firms quickly welcomed the decision, saying the changes offer long-awaited regulatory certainty.

Coinbase Chief Legal Officer Paul Grewal said the move confirms the industry’s belief that stablecoins and digital assets can reduce risk and improve efficiency in financial markets, according to a CFTC announcement. 

Circle President Heath Tarbert also chimed in and said the changes would reduce settlement risk and friction in derivatives trading by enabling near real-time margin settlement.

Crypto.com CEO Kris Marszalek said the announcement would allow tokenized collateral to be used in U.S. markets for the first time at scale, adding that it would support 24/7 trading in regulated derivatives products.

This post CFTC Launches Pilot Program Allowing Bitcoin To Be Used as Collateral In Derivatives Markets first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

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Strategy ($MSTR) Buys Nearly $1 Billion Worth of Bitcoin

Strategy, the largest publicly traded holder of bitcoin, said it acquired 10,624 BTC last week for about $962.7 million, returning to a scale of purchases not seen since mid-year as market volatility steadied.

The company paid an average price of $90,615 per bitcoin during the Dec. 1–7 period, according to a regulatory filing and a statement from Executive Chairman Michael Saylor. The purchase lifts Strategy’s total bitcoin holdings to 660,624 coins, accumulated for roughly $49.35 billion at an average cost of $74,696 per bitcoin.

At current prices near $94,000, Strategy’s bitcoin stash is valued at about $60.5 billion, leaving the firm with an estimated $11 billion in unrealized gains.

Shares of Strategy (MSTR) were modestly higher in premarket trading Monday, rising about 2% alongside a small advance in bitcoin. The stock rebounded from a low near $155 on Dec. 1, reached during a sharp selloff across crypto-linked equities, but remains down more than 50% over the past six months.

Strategy’s largest purchase in 6 months

The acquisition marks Strategy’s largest weekly bitcoin purchase since July. In recent months, the company continued to add bitcoin almost every week, though in smaller amounts, as falling equity prices limited its ability to raise capital. 

Last week’s transaction suggests improved access to funding, even as investor sentiment toward crypto-related stocks remains mixed.

Strategy said the purchase was funded primarily through its at-the-market equity sales program. The company raised $928.1 million from the sale of 5.13 million shares of MSTR common stock and an additional $34.9 million from selling 442,536 shares of its STRD preferred stock. Net proceeds totaled about $963 million.

The firm retains significant remaining issuance capacity across multiple securities. Strategy reported unused at-the-market capacity of about $13.45 billion in common stock and more than $26 billion across several preferred and structured offerings, including STRK, STRF, STRC, and STRD.

Saylor also highlighted the company’s “BTC Yield” metric, which he said reached 24.7% year-to-date in 2025. The measure is intended to reflect the growth in bitcoin held per diluted share, rather than changes in dollar value, and has become a core part of Strategy’s investor messaging as it positions itself as a bitcoin-focused treasury and structured finance business.

The latest purchase comes as Saylor attends the BTC Conference in Abu Dhabi. In public comments, he said he has spent the past week meeting with sovereign wealth funds, banks, family offices, and hedge funds across the Middle East to discuss bitcoin and capital markets. Strategy did not disclose whether those meetings resulted in any financing commitments.

You can listen to Mr. Saylor’s interview and other BTC Conference content on Bitcoin Magazine’s social media and YouTube.

Bitcoin rose about 3% over the past 24 hours and roughly 1.5% on Monday morning, recovering from recent weakness that pushed prices into the low $80,000s. Some analysts attribute the bounce to expectations that the Federal Reserve may cut interest rates this week, which could support risk assets after the recent pullback.

The backdrop remains unsettled for Strategy. Investors continue to debate whether the company’s aggressive use of equity issuance to buy bitcoin amplifies both upside and downside for shareholders. The firm raised nearly $2 billion two weeks ago, largely to build a cash buffer to cover preferred dividend obligations, before tapping markets again last week to fund bitcoin purchases.

Strategy’s MSCI concerns

At the same time, Strategy faces uncertainty around index inclusion. MSCI is reviewing whether companies with large digital-asset holdings should remain in traditional equity benchmarks. JPMorgan analysts have warned that exclusion could trigger billions of dollars in passive outflows from Strategy if index funds are forced to sell.

Saylor has pushed back on those concerns, arguing that Strategy is an operating company with a sizable software business and a growing Bitcoin-backed credit operation, not a fund or trust. He has said index classification debates do not alter the firm’s long-term approach.

For now, the company is pressing ahead with that strategy. With more than 660,000 bitcoin on its balance sheet and continued access to capital markets, Strategy remains the most visible corporate proxy for bitcoin exposure in public equities, even as volatility in both crypto prices and its own shares shows little sign of fading.

The current bitcoin price is near $91,500. 

This post Strategy ($MSTR) Buys Nearly $1 Billion Worth of Bitcoin first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

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Bitcoin Price Craters to $88,000, But JPMorgan Maintains $170,000 Target

Bitcoin price plunged to $88,000s on Friday, down over 4% in the past 24 hours. The cryptocurrency is trading near its seven-day low of $88,091, and about 4% below its seven-day high of $92,805. 

The global market capitalization for Bitcoin now stands at $1.77 trillion, with a 24-hour trading volume of $48 billion.

Despite the recent drop, Wall Street bank JPMorgan remains bullish on the Bitcoin price over the long term. The bank continues to maintain its gold-linked volatility-adjusted BTC target of $170,000 over the next six to twelve months. 

Analysts say the model accounts for fluctuations in price and mining costs.

One key factor in the market is Strategy (MSTR), the largest corporate Bitcoin holder. The company owns 650,000 BTC. Its enterprise-value-to-Bitcoin-holdings ratio, known as mNAV, currently stands at 1.13. 

JPMorgan analysts describe this as “encouraging.” A ratio above 1.0 indicates Strategy is unlikely to face forced sales of its Bitcoin.

Strategy has also built a $1.44 billion U.S. dollar reserve. The reserve is designed to cover dividend payments and interest obligations for at least 12 months. The company aims to extend coverage to 24 months. 

Bitcoin mining pressure

Mining pressures continue to weigh on Bitcoin. The network’s hashrate and mining difficulty have fallen. High-cost miners outside China are retreating due to rising electricity costs and declining prices. Some miners have sold Bitcoin to remain solvent. 

JPMorgan now estimates Bitcoin’s production cost at $90,000, down from $94,000 last month. Falling hashrates can push production costs lower, but the short-term effect is sustained selling pressure from miners.

Institutional investors also show caution. BlackRock’s iShares Bitcoin Trust, or IBIT, has recorded six consecutive weeks of net outflows. Investors pulled more than $2.8 billion from the ETF over this period, according to Bloomberg.

The withdrawals highlight subdued appetite among traditional investors, even as Bitcoin prices stabilize. Analysts note that the trend marks a reversal from the persistent inflows seen earlier in the year.

The broader market is still recovering from the October 10 liquidation event. That crash wiped out over $1 trillion in crypto market value and pushed Bitcoin into a bear market.

Although the Bitcoin price has recovered some ground this week, momentum remains fragile.

JPMorgan analysts now say Bitcoin’s next major move depends less on miner behavior. Instead, it depends on Strategy’s ability to hold its Bitcoin without selling. The mNAV ratio and reserve fund provide confidence that the company can weather market volatility.

Other potential catalysts remain. The MSCI index decision on January 15 could impact Strategy’s stock and, indirectly, Bitcoin. Analysts say a positive outcome could trigger a strong rally.

Last week, Strategy’s Michael Saylor disputed MSCI index disputes and clarified that Strategy is a publicly traded operating company with a $500 million software business and a treasury strategy using Bitcoin, not a fund, trust, or holding company. 

He emphasized the firm’s recent activity, including five digital credit security offerings totaling over $7.7 billion in notional value.

Bitcoin price analysis

Bitcoin Magazine analysts believe that the bitcoin price correlation with Gold has recently strengthened mainly during market downturns, offering a clearer view of its purchasing power when analyzed against Gold instead of USD.

Breaking below the 350-day moving average (~$100,000) and the $100K psychological level signaled Bitcoin’s entry into a bear market, dropping roughly 20% immediately. 

While USD charts show a 2025 peak, Bitcoin measured in Gold peaked in December 2024 and has fallen over 50%, suggesting a longer bear phase. 

Historical Gold-based bear cycles indicate potential support zones approaching, with current declines at 51% over 350 days reflecting institutional adoption and constrained supply rather than cycle shifts.

For now, bitcoin price hovers near $88,000. 

This post Bitcoin Price Craters to $88,000, But JPMorgan Maintains $170,000 Target first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

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Why The Bitcoin Bear Market Is Almost Finished

Bitcoin has struggled to maintain a sustained correlation with Gold, recently only moving in unison during market downturns. However, examining Bitcoin’s price action through the lens of Gold rather than USD reveals a more complete picture of the current market cycle. By measuring Bitcoin’s true purchasing power against comparable assets, we can identify potential support levels and gauge where the bear market cycle may be approaching its conclusion.

Bitcoin Bear Market Officially Begins Below Key Support

Breaking beneath the 350-day moving average at about $100,000 and the significant psychological 6-figure barrier marked the functional entry into bear market territory, with Bitcoin declining approximately 20% immediately thereafter. From a technical perspective, trading beneath The Golden Ratio Multiplier moving average has historically indicated Bitcoin entering a bear cycle, though the narrative becomes more interesting when measured against Gold rather than USD.

The Bitcoin versus Gold chart tells a notably different story than the USD chart. Bitcoin topped out in December 2024 and has since declined over 50% from that level, whereas the USD valuation peaked in October 2025, significantly beneath the highs set the prior year. This divergence suggests that Bitcoin may have been in a bear market for considerably longer than most observers realize. Looking at historical Bitcoin bear cycles when measured in Gold, we can see patterns that suggest the current pullback may already be approaching critical support zones.

The 2015 bear cycle bottomed at an 86% retracement lasting 406 days. The 2017 cycle saw 364 days and an 84% decline. The previous bear cycle produced a 76% drawdown over 399 days. Currently, at the time of this analysis, Bitcoin is down 51% in 350 days when measured against Gold. While percentage drawdowns have been diminishing as Bitcoin’s market cap grows and more capital flows into the market, this trend reflects the rising tide of institutional adoption and lost Bitcoin supply rather than a fundamental change in cycle dynamics.

Multi-Cycle Confluence Signals Bitcoin Bear Market Bottom Approaching

Rather than relying solely on percentage drawdowns and time elapsed, Fibonacci retracement levels mapped across multiple cycles provide greater precision. Using a Fibonacci retracement tool from bottom to top across historical cycles reveals striking levels of confluence.

In the 2015-2018 cycle, the bear market bottom occurred at the 0.618 Fibonacci level, which corresponded to approximately 2.56 ounces of Gold per Bitcoin. The resulting price action marked the bottom with remarkable clarity, far cleaner than the equivalent USD chart. Moving forward to the 2018-2022 cycle, the bear market bottom aligned almost perfectly with the 0.5 level at approximately 9.74 ounces of Gold per Bitcoin. This level later acted as meaningful resistance-turned-support once Bitcoin reclaimed it during the subsequent bull market.

Translating Bitcoin Bear Market Gold Ratios Back to USD Price Targets

From the previous bear market low through the current bull cycle high, the 0.618 Fibonacci level sits at approximately 22.81 ounces of Gold per Bitcoin, while the 0.5 level rests at 19.07 ounces. Current price action is trading near the midpoint of these two levels, presenting what may be an attractive accumulation zone from a purchasing power perspective.

Multiple Fibonacci levels from different cycles create additional confluence. The 0.786 level from the current cycle translates to approximately 21.05 ounces of Gold, corresponding to a Bitcoin price around $89,160. The 0.618 level from the previous cycle aligns near $80,000 again. These convergence zones suggest that if Bitcoin were to decline further, the next meaningful technical target would be around $67,000, derived from the 0.382 Fibonacci retracement level at approximately 15.95 ounces of Gold per Bitcoin.

Conclusion: The Bitcoin Bear Market May Be 90% Complete Already

Bitcoin has likely been in a bear market for substantially longer than USD-only analysis suggests, with purchasing power already declining significantly since December 2024, when measured against Gold and other comparable assets. Historical Fibonacci retracement levels, when properly calibrated across multiple cycles and converted back into USD terms, point toward potential support confluence in the $67,000 to $80,000 range. While this analysis is inherently theoretical and unlikely to play out with perfect precision, the convergence of multiple data points across time horizons and valuation frameworks suggests the bear market may be approaching its conclusion sooner than many anticipate.

For a more in-depth look into this topic, watch our most recent YouTube video here: Proof This Bitcoin Bear Market May Be OVER Already

For deeper data, charts, and professional insights into bitcoin price trends, visit BitcoinMagazinePro.com. Subscribe to Bitcoin Magazine Pro on YouTube for more expert market insights and analysis!

Disclaimer: This article is for informational purposes only and should not be considered financial advice. Always do your own research before making any investment decisions.

This post Why The Bitcoin Bear Market Is Almost Finished first appeared on Bitcoin Magazine and is written by Matt Crosby.

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Italy Launches Review of Crypto Safeguards Due to Rising Risks

Italy’s Economy Ministry has ordered a detailed review of current protections against crypto risks, officials said on Thursday. 

The review will focus on safeguards for both direct and indirect investments in crypto-assets by retail investors, regulators added.

The decision came during a meeting of the Committee for Macroprudential Policies. The committee includes the heads of the Bank of Italy, market watchdog Consob, insurance and pension regulators, and the Treasury’s director general, according to Reuters reporting. 

Committee members warned that risks from crypto-assets could rise. Growing connections between crypto and the wider financial system, along with inconsistent international regulations, could heighten vulnerabilities, they said.

The committee said Italy’s economic and financial conditions remain generally stable. At the same time, global uncertainty continues to pose challenges for financial stability.

The review will examine how existing rules protect investors and the financial system. Officials said they aim to identify gaps and recommend measures to strengthen safeguards, per Reuters. 

Italy has increasingly monitored digital assets in recent years. Authorities have raised concerns over investor protection, market integrity, and potential spillovers into the broader financial system. The new review signals a more cautious approach to crypto adoption in the country.

Italy’s cold-shoulder to crypto

Last year, Italy proposed a steep tax hike on crypto trades, aiming to raise the rate on digital asset gains from 26% to 42% as part of its October budget plan.

The measure was designed to boost public finances but quickly drew criticism from the crypto industry, which warned that such an aggressive increase would damage the country’s competitiveness — especially with the EU preparing to roll out its Markets in Crypto-Assets (MiCA) framework later this year.

The government backed down from its proposal after sharp criticism from Italy’s crypto industry. Under the revised budget plan, the capital-gains tax on digital asset trades is now expected to rise to 33% starting in the 2026 financial year, per reports. 

Last week, Bitizenship launched BTC Italia and The Bitcoin Dolce Visa, a Bitcoin-aligned pathway for obtaining Italy’s Investor Visa through a €250,000 startup investment.

The Milan-based venture operates as an “Innovative Startup” focused on Bitcoin Layer-2 yield generation and treasury management, giving applicants exposure to a Bitcoin-native business while staying within Italy’s regulatory framework.

The initiative comes as Italy posts strong economic performance, including record exports, a €46 billion trade surplus, stabilizing public debt, and a stock market that has doubled since 2020. With capital-market reforms on the horizon and competitive tax incentives, the country has become an increasingly attractive destination for foreign investors.

Under the program, applicants receive visa approval before committing funds. BTC Italia maintains its treasury in Bitcoin, uses non-custodial Layer-2 staking for operations, and offers redemption windows every 24 months.

This post Italy Launches Review of Crypto Safeguards Due to Rising Risks first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

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BlackRock CEO Larry Fink Says He Was Wrong About Bitcoin, Reveals a ‘Big Shift’ in His View

BlackRock CEO Larry Fink has shifted his perspective on Bitcoin — and he openly acknowledged the change.

Speaking at the NYT DealBook Summit on Wednesday, Fink stated that he now sees potential in Bitcoin. Fink was once a vocal critic who famously labeled Bitcoin “an index for money laundering,” 

Today, Fink described Bitcoin as “an asset of fear,” elaborating that investors frequently purchase it in response to concerns about financial security, geopolitical instability, or the ongoing debasement of traditional assets caused by growing deficits.

“If you bought it for a trade, it’s a very volatile asset, you’re going to have to be really good at market timing, which most people aren’t,” Fink said. “If you’re buying it as a hedge against all your hope, then it has a meaningful impact on a portfolio… the other big problem of Bitcoin is it is still heavily influenced by leveraged players.”

Fink, speaking alongside Coinbase CEO Brian Armstrong, noted that market movements — like a recent 20–25% drawdown in Bitcoin — often reflect broader events, such as trade agreements with China or potential settlements in Ukraine. 

Despite all this, Fink still suggested it can serve as meaningful portfolio insurance for those holding it as a hedge rather than for short-term trading.

Fink emphasized that his perspective has evolved through years of client interactions and discussions with policymakers, calling his change of heart a “very glaring public example” of the need to reassess strong opinions. 

Meanwhile, BlackRock, the $13.5 trillion asset manager Fink helped build, now offers several crypto products, including a major Bitcoin ETF, marking a stark contrast to his earlier skepticism.

“There is no chance” that Bitcoin goes to zero, said Mr. Armstrong, who sat beside Fink. Fink also shared an optimistic view for the asset: “I see a big, large use case for Bitcoin,” he said.

BlackRock’s bold embrace of bitcoin and crypto

Back in October, BlackRock said they were developing technology to tokenize a wide range of assets, including real estate, equities, and bonds.

Fink said at the time that global digital wallets held over $4.5 trillion across crypto, stablecoins, and tokenized assets. He noted much of this capital was outside the U.S., presenting opportunities to reach new investors. 

Fink said tokenization could allow crypto entrants to access traditional long-term products, like retirement funds. He described Bitcoin and crypto as serving a similar purpose to gold. 

This post BlackRock CEO Larry Fink Says He Was Wrong About Bitcoin, Reveals a ‘Big Shift’ in His View first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

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UK Passes Bill Formally Recognizing Crypto as a New Category of Property

The United Kingdom has officially written crypto into its legal framework as a distinct form of property.

On Tuesday, the Property (Digital Assets etc.) Act 2025 received Royal Assent from King Charles III, completing its passage through Parliament and creating a third, legally recognized category of property specifically for digital assets. The act passed both houses without amendment.

The new classification places assets such as bitcoin, stablecoins and NFTs into a bucket separate from traditional “things in possession,” like physical objects, or “things in action,” like contractual rights. Policymakers say the reform was needed to modernize property law for the digital era.

“A third category of property now exists, and it finally gives legal protection to the sats you hold,” said Susie Ward, CEO of Bitcoin Policy UK. Her group’s Chief Policy Officer, Freddie New, called the act potentially “the biggest change in English property law since the Middle Ages.”

The reform stems from a 2023 recommendation by the Law Commission, which argued that digital assets did not fit neatly into existing legal categories. The bill was introduced in the House of Lords in September 2024 before moving swiftly through Parliament.

While U.K. courts had already been treating crypto as property in rulings over the past several years, the approach relied on case-by-case judgments. 

Crypto’s ‘clearer legal’ footing

Trade association CryptoUK said codifying the principle in statute offers much clearer legal pathways in matters involving theft, fraud, insolvency and estate planning.

“This gives digital assets a much clearer legal footing — especially for things like proving ownership, recovering stolen assets, and handling them in insolvency or estate cases,” CryptoUK said in a statement on X.

Lawmakers also framed the legislation as a boost to consumer and investor protection.

“By recognizing digital assets in law, the U.K. is giving consumers clear ownership rights, stronger protections, and the ability to recover assets lost through theft or fraud,” Gurinder Singh Josan, co-chair of the Crypto and Digital Assets All Party Parliamentary Group, told CoinDesk. 

The Royal Assent was formally announced in the House of Lords around 2:30 p.m. Tuesday, marking the moment the bill became law.

UK’s bitcoin ETN ban lift 

Earlier this year, the U.K. lifted its four-year ban on retail access to bitcoin and crypto ETNs, allowing firms to offer the products on FCA-approved exchanges. 

After the ban, BlackRock then launched its fully backed iShares Bitcoin ETP (IB1T) on the London Stock Exchange.

Meanwhile, the UK government is reportedly weighing a ban on crypto donations to political parties as it drafts its upcoming Elections Bill, according to people familiar with internal discussions and POLITICO reporting. 

The move would directly affect Nigel Farage’s Reform UK, which became the first British party to accept digital asset donations and has already received several. 

This post UK Passes Bill Formally Recognizing Crypto as a New Category of Property first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

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Bitcoin Equities Jump as Strategy ($MSTR) Leads Sector Rebound

Bitcoin-linked stocks surged on Tuesday as the broader crypto market staged a sharp recovery and Bitcoin reclaimed the $91,000 level. 

Strategy was the standout mover, rising faster than both Bitcoin itself and most major tech names at times. MSTR shares climbed 8.66% at times to $186.26, lifted by heavy trading volume that exceeded 4.4 million shares.

MSTR is currently trading at $182.74.

The move slightly outpaced Bitcoin’s rebound to $91,000 and signaled renewed appetite for high-beta exposure to the digital asset through equities. 

Other crypto-adjacent stocks also advanced, including the iShares Bitcoin Trust ETF, which gained more than 7%, and smaller firms such as Smarter Web Company and Metaplanet Inc., which posted mid–single-digit gains. 

Capital B saw the largest percentage move of the group, trading more than 10% higher at times today.

The surge in Bitcoin equities came as institutional demand accelerated across the market. Trading desks reported strong flows into Bitcoin ETFs, a trend that has intensified as major Wall Street firms open the door to regulated crypto products.

Strategy won’t sell its Bitcoin 

Strategy’s rally also followed new comments from CEO Phong Le, who spoke with Bloomberg about the company’s balance sheet strategy and long-term commitment to Bitcoin.

Le reiterated that Strategy has no plans to sell Bitcoin except as a last resort and said the company remains firmly committed to paying dividends on its preferred shares. 

He argued that maintaining the dividend helps prevent uncertainty from spreading through the company’s capital structure, adding that the goal is to pay it “in perpetuity,” even though the board retains the ability to pause payments.

Le addressed concerns about leverage, pushing back on the idea that the company is overextended. He said Strategy’s leverage ratio stands at roughly 12%, or 27% when preferred shares are included — far below levels seen in typical U.S. corporations. 

The company recently raised $1.44 billion in equity in just over a week, enough to cover nearly two years of dividend obligations. 

Le said Strategy also now holds multiple years of dividend capacity in its Bitcoin reserves, reducing the risk that it would need to liquidate holdings during market stress.

The company is building a cash reserve designed to cover two to three years of dividend payments, a buffer Le expects to maintain for at least the next five to ten years. 

He again rejected the view that Strategy should be treated like a closed-end fund or ETF, arguing that the firm is a fully operational Bitcoin-focused company with employees, products and revenue, not a passive investment vehicle. 

He said the company has begun educating MSCI and other index providers on the distinction as they review whether digital-asset treasury companies should remain in major indices.

Strategy might start lending Bitcoin

Le also said MicroStrategy is evaluating opportunities to participate in Bitcoin lending once large U.S. banks fully enter the space. 

Discussions are already taking place with institutions preparing to offer custody and lending services. He emphasized that traditional banks bring the kind of scale and balance-sheet strength MicroStrategy wants in potential partners.

Bitcoin’s own rebound was decisive. The asset traded near $91,100 late Tuesday, rising 8% in 24 hours as volume approached $78 billion, one of the strongest sessions in weeks. 

The move lifted Bitcoin above its seven-day high and kept it comfortably above last week’s low near $84,000. 

The bounce came just as several major financial institutions made their most aggressive moves yet into Bitcoin investment products.

Bank of America announced that its 15,000 wealth advisers will be permitted to recommend crypto exposure for the first time. Beginning January 5, the bank will support allocations of 1% to 4% through a select group of Bitcoin ETFs, ending years of internal restrictions. 

In a separate reversal, Vanguard opened its platform to Bitcoin ETFs and crypto-linked mutual funds for the first time. 

The decision gives more than 50 million brokerage clients access to regulated Bitcoin exposure, marking a major shift for a firm that previously dismissed Bitcoin as too speculative for long-term investors.

This post Bitcoin Equities Jump as Strategy ($MSTR) Leads Sector Rebound first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

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A Pivotal Moment for Bitcoin Price

As the Federal Reserve prepares to end Quantitative Tightening (QT), the bitcoin price stands at a critical macroeconomic inflection point. With odds for a December rate cut now pricing it in as almost a certainty, the stage is set for a potential shift in monetary policy that could fundamentally alter the trajectory of Bitcoin and broader risk assets. History suggests that when the Fed’s balance sheet stops contracting, Bitcoin typically experiences significant bullish catalysts.

Balance Sheet Reversals and the Bitcoin Price

The Fed balance sheet versus Bitcoin chart reveals a compelling pattern. Over Bitcoin’s history, there have been only three previous instances where QT ended and the federal balance sheet began flatlining or expanding. The first occurred on October 27, 2010, followed almost immediately by a massive Bitcoin bull rally. The second instance on September 26, 2012, again resulted in an explosive rally into the 2013 double-peak cycle. The third signal came in 2019, though this one was complicated by the COVID-19 pandemic and initial market crash—yet it eventually drove Bitcoin from around $3,000 to over $67,000.

Business Cycle Impact on Bitcoin Price

Bitcoin’s recent stagnation despite rising Global M2 suggests that monetary liquidity alone isn’t driving prices. Instead, the asset appears increasingly correlated with traditional business cycle indicators, particularly the U.S. Purchasing Managers Index (PMI). This metric measures manufacturing confidence and economic activity, and its correlation with S&P 500 yearly returns is striking: when PMI rises, equities typically deliver outsized returns; when PMI falls, markets enter periods of underperformance or recession.

A leading indicator for PMI trends is the copper-to-gold ratio. This relationship is nearly perfectly correlated, but copper often leads, bottoming ahead of PMI rallies and topping before PMI declines. Currently, the Copper/Gold ratio appears to be bottoming out, aligning with the historical timeline of Fed balance sheet reversals. This suggests the traditional business cycle may be about to turn favorable again after a period of economic softening.

Conclusion: Next Move for Bitcoin Price

The end of QT, combined with a resurgent Copper/Gold ratio and historical precedent spanning Bitcoin’s entire existence, suggests that monetary conditions are about to become materially more favorable. While Bitcoin has recently lagged traditional assets, this underperformance appears tied to deteriorating economic confidence rather than fundamental weakness in Bitcoin itself. As both monetary policy and business cycle indicators potentially turn positive, the confluence of these forces could mark the beginning of a significant trend reversal. Bitcoin stands positioned to benefit from this dual tailwind, making the coming weeks and months critical for monitoring whether these historical signals finally translate into sustained price appreciation.

For deeper data, charts, and professional insights into bitcoin price trends, visit BitcoinMagazinePro.com. Subscribe to Bitcoin Magazine Pro on YouTube for more expert market insights and analysis!

Disclaimer: This article is for informational purposes only and should not be considered financial advice. Always do your own research before making any investment decisions.

This post A Pivotal Moment for Bitcoin Price first appeared on Bitcoin Magazine and is written by Matt Crosby.

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Bitcoin Price Plunges 8% to $84,000 as December Opens With More Market Jitters

Bitcoin price fell sharply to the mid-$84,000s early Monday, sliding 8% over the past 24 hours as a wave of macro anxiety, thin liquidity and fresh crypto-native stress hit markets simultaneously. 

The world’s largest digital asset traded between a 24-hour high of $91,866 and a low of $84,722, extending a two-month drawdown that has now erased more than 30% from October’s record highs, according to Bitcoin Magazine Pro data. 

The downturn marks a swift reversal from last week’s tentative recovery. After plunging below $81,000 on Nov. 21, the Bitcoin price steadily climbed into the end of November and briefly pushed above $92,500 during Black Friday’s morning session. 

But momentum reversed again Sunday evening, with BTC slipping back below $85,000 early Monday. At the time of writing, the bitcoin price is $86,469.  

Why is Bitcoin price dipping? 

Multiple forces might be behind the renewed selloff. The most immediate shock could be from a security incident at Yearn Finance, where a flaw in the protocol’s yETH pool allowed an attacker to mint an abnormally large amount of tokens. 

The exploit flooded the pool with invalid supply and triggered a rush for the exits across DeFi —  spilling over into majors like BTC and ETH.

But macro pressure has been building in parallel. A sharp spike in Japanese government bond yields — part of a broader global repricing of interest-rate expectations—sparked a risk-off move in Asia trading hours, hitting an already fragile, low-volume crypto market.

Comments from Bank of Japan Governor Kazuo Ueda signaled the possibility of a December rate hike — an event that would be Japan’s first move away from negative interest rate policy in years. 

The remarks sent Japan’s 30-, 10-, and 2-year government bond yields to their highest levels since 2008. A stronger yen could force hedge funds that borrow cheaply in Japan to unwind carry trades, adding fresh pressure to bitcoin and other risk assets.

According to 10x Research, last week marked one of the lowest-liquidity stretches since July, leaving order books thin and amplifying the impact of institutional selling.

The result was a deeper drawdown than fundamentals alone might suggest. Bitcoin’s market depth evaporated over the weekend, turning what might have been a modest correction into a full-scale liquidity event. 

More than 220,000 traders were liquidated over 24 hours, with total losses exceeding $630 million.

The derivatives picture underscores the imbalance: Bitcoin price futures open interest fell by $1.1 billion leading into the decline, suggesting traders had already started de-risking. 

Monetary policy uncertainty remains at the center of investors’ anxiety. Markets now assign an 80%–87% probability that the Federal Reserve will cut rates by 25 basis points at its Dec. 9–10 meeting.

Rate cuts would be supportive for the Bitcoin price, boosting liquidity and risk appetite. But if the Fed opts to hold steady, traders fear a sharper unwind across risk assets.

Corporate developments added another wrinkle. Strategy Inc. (formerly MicroStrategy) said Monday it created a $1.4 billion reserve—funded by common-stock sales—to cover at least 21 months of preferred-stock dividend payments amid Bitcoin’s slide. 

The company, which now holds 650,000 BTC, also reported purchasing another 130 BTC last week for $11.7 million.

Last week, fresh disclosures showed BlackRock ramping up its exposure to its own spot Bitcoin ETF while JPMorgan rolled out a high-stakes structured note tied to the fund.

Bitcoin price briefly dipped to $86,129 before rebounding above $90,300 amid ongoing Q4 volatility. BlackRock’s Strategic Income Opportunities Portfolio now holds 2.39 million IBIT shares worth $155.8 million, up 14% from June, signaling deeper internal allocation to BTC-linked assets.

Meanwhile, JPMorgan’s new derivative-style note lets institutions bet on IBIT’s future price, offering a 16% fixed return if targets are met next year, and up to 1.5x upside by 2028 if Bitcoin surges.

At the time of writing, the bitcoin price is rebounding up to $86,469.  

This post Bitcoin Price Plunges 8% to $84,000 as December Opens With More Market Jitters first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

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El Salvador Partners with Simple Proof to Timestamp Government Documents on Bitcoin Blockchain

Simple Proof, the bitcoin-based document timestamping company, recently announced official partnerships with El Salvador’s Ministry of Foreign Affairs and Ministry of Environment to protect

government records using the Bitcoin blockchain technology. The announcement was made during the Bitcoin Histórico conference at the National Theatre in San Salvador, where CEO Carlos Toriello presented alongside OpenTimestamps creator and Bitcoin Core Contributor Peter Todd.

The collaboration marks El Salvador’s continued leadership in applying Bitcoin technology beyond financial applications. Both ministries have begun registering official documents on the Bitcoin blockchain, with verified records now publicly accessible through dedicated government portals.

“Bitcoin is not just digital money — it’s also a clock that no one controls. This allows us to certify with precision the exact moment a document was created, guaranteeing its authenticity and protecting the country’s history forever… We’re helping ensure that the country’s history is preserved intact and can be verified directly on Bitcoin, without intermediaries,” said Carlos Toriello, CEO of Simple Proof, in a press release shared with Bitcoin Magazine.

The company has had multiple successful pilot programs in the past, including one in Screven County, Georgia, in the United States and another in Guatemala, where it had a direct influence on the 2023 elections. 

This deployment builds on Simple Proof’s previous work in El Salvador, where CUBO+ program graduation certificates became the first public documents in the country registered via the Bitcoin blockchain. 

The Ministry of Environment’s timestamped documents, including national reports and public files, are available at blockchain.ambiente.gob.sv. The Ministry of Foreign Affairs offers verification of institutional reports and records at rree.gob.sv/logros-y-memorias. 

Peter Todd, creator of OpenTimestamps, the platform and protocol used in part to time-stamp critical data on the Bitcoin blockchain, said in the press release that, “With a single transaction, we can protect millions of documents without congesting the network or altering its monetary function,” noting that the system stores only cryptographic hashes rather than actual documents on Bitcoin.

The project positions El Salvador as a global reference for using blockchain technology in government

information management, strengthening the transparency and public trust of democratic institutions and processes, by eliminating the possibility of document tampering.

This post El Salvador Partners with Simple Proof to Timestamp Government Documents on Bitcoin Blockchain first appeared on Bitcoin Magazine and is written by Juan Galt.

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Texas Becomes First U.S. State to Buy $5M of BlackRock’s Spot Bitcoin ETF

On November 20, Texas became the first U.S. state to buy Bitcoin for its Strategic Reserve, acquiring $5 million at roughly $87,000 per BTC, according to Lee Bratcher, President of the Texas Blockchain Council.

The purchase was made through BlackRock’s iShares Bitcoin Trust (IBIT) while the state finalizes plans for self-custody.

The move signals growing state-level interest in Bitcoin as a reserve asset. Texas had previously explored strategic Bitcoin legislation last year, wanting to create a Bitcoin reserve without using taxpayer funds. 

In June of this year, the Texas governor signed the legislation into law, creating a state Strategic Bitcoin Reserve.

Institutional investors are increasingly following suit. Harvard University’s endowment recently tripled its IBIT holdings to $442.8 million, making it the university’s largest publicly disclosed investment. 

Emory University and Abu Dhabi’s Al Warda Investments have also significantly increased Bitcoin ETF exposure.

Bitcoin’s price is currently trading near $87,500, roughly 30% below its all-time high. Lee Bratcher was the first to disclose this news. 

“Texas will eventual self-custody bitcoin,” Bratcher said, “but while that RFP process takes place, this initial allocation was made with BlackRock’s IBIT ETF.

Bratcher is the President and Founder of the Texas Blockchain Council, an industry association with over 100 member companies and hundreds of individuals promoting Texas as a hub for Bitcoin and blockchain innovation. 

He actively championed the state’s Bitcoin reserve legislation, working on the ground to guide it through the state Senate.

Texas isn’t the only state interested in buying bitcoin 

In the legislation explored last year, Texas State Representative Giovanni Capriglione filed a bill to create a Strategic Bitcoin Reserve for the state. 

The legislation proposed that the state buy and hold bitcoin as a strategic asset, store it in cold storage for at least five years, allow resident donations, and enable state agencies to accept and convert cryptocurrencies to bitcoin. 

It also mandated transparency through yearly audits and reports. Modeled after a federal proposal by President Donald Trump and Senator Lummis, the bill mirrored the growing global interest of bitcoin. 

Earlier this month, New Hampshire became the first government worldwide to approve a $100 million Bitcoin-backed municipal bond. The state’s Business Finance Authority (BFA) authorized the conduit bond, allowing private companies to borrow against over-collateralized Bitcoin held in custody, with repayment risk resting solely on the collateral. 

Borrowers must post roughly 160% of the bond’s value in Bitcoin, and automated liquidation protects bondholders if values drop. Fees and any BTC appreciation will fund the state’s Bitcoin Economic Development Fund. 

This move follows New Hampshire and Arizona’s earlier creation of a Strategic Bitcoin Reserve. 

This post Texas Becomes First U.S. State to Buy $5M of BlackRock’s Spot Bitcoin ETF first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

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MSCI Proposal Singles Out Bitcoin Treasury Companies and Undercuts Benchmark Neutrality

MSCI is considering a new rule that would remove companies from its Global Investable Market Indexes if 50% or more of their assets are held in digital assets such as Bitcoin. The proposal appears simple, but the implications are far-reaching. It would affect companies like Michael Saylor’s Strategy (formerly MicroStrategy), Eric and Donald Trump Jr’s American Bitcoin Corp (ABTC), and dozens of others across global markets whose business models are fully legitimate, fully regulated, and fully aligned with long-standing corporate treasury practices.

The purpose of this document is to explain what MSCI is proposing, why the concerns raised around Bitcoin treasury companies are overstated, and why excluding these firms would undermine benchmark neutrality, reduce representativeness, and introduce more instability—not less—into the indexing system.

1. What MSCI Is Proposing

MSCI launched a consultation to determine whether companies whose primary activity involves Bitcoin or other digital-asset treasury management should be excluded from its flagship equity indices if their digital-asset holdings exceed 50% of total assets. The proposed implementation date is February 2026.

The proposal would sweep in a broad set of companies:

• Strategy (formerly MicroStrategy), a major software and business-intelligence firm that holds Bitcoin as a treasury reserve.
• American Bitcoin Corp (ABTC), a new public company created by Eric and Donald Trump with a Bitcoin-focused balance sheet.
• Miners, infrastructure firms, and diversified operating companies that use Bitcoin as a long-term inflation hedge or capital reserve.

These companies are all publicly traded operating entities with audited financials, real products, real customers, and established governance. None are “Bitcoin ETFs.” Their only distinction is a treasury strategy that includes a liquid, globally traded asset.

2. The JPMorgan Warning — And the Reality Behind It

JPMorgan analysts recently warned that Strategy could face up to $2.8B in passive outflows if MSCI removes it from its indices, and up to $8.8B if other index providers follow.

Their analysis correctly identifies the mechanical nature of passive flows. But it misses the real context.

Strategy has traded more than $1 trillion in volume this year.
The “catastrophic” $2.8B scenario represents:

• Less than one average trading day
• ~12% of a typical week
• ~3% of a typical month
• 0.26% of year-to-date trading flow

In liquidity terms, this is immaterial. The narrative of a liquidity crisis does not match market structure reality. The larger issue is not the outflow itself—it is the precedent that index exclusion would set.

If benchmark providers begin removing companies because of the composition of their treasury assets, the definition of what qualifies as an “eligible company” becomes non-neutral.

3. A Contradiction on MSCI’s Own Balance Sheet

MSCI’s policy position also conflicts with the composition of MSCI’s own assets.

MSCI reports roughly $5.3B in total assets.
More than 70%—about $3.7B—is goodwill and intangible assets. These are non-liquid, non-marketable accounting entries that cannot be sold or marked to market. They are not verifiable in the same way that digital assets are.

Bitcoin, by contrast:

• Trades globally 24/7
• Has transparent price discovery
• Is fully auditable and mark-to-market
• Is more liquid than nearly any corporate treasury asset outside sovereign cash

The proposal would penalize companies for holding an asset that is far more liquid, transparent, and objectively priced than the intangibles that dominate MSCI’s own balance sheet.

4. How the Proposal Violates Benchmark Principles

MSCI is a global standard-setter. Its benchmarks are used by trillions of dollars in capital allocation. These indices are governed by widely accepted principles—neutrality, representativeness, and stability. The proposed digital-asset threshold contradicts all three.

Neutrality

Benchmarks must avoid arbitrary discrimination among lawful business strategies.
Companies are not removed for holding:

• Large cash positions
• Gold reserves
• Foreign exchange reserves
• Commodities
• Real estate
• Receivables that exceed 50% of assets

Digital assets are the only treasury asset singled out for exclusion. Bitcoin is legal, regulated, and widely held by institutions worldwide.

Representativeness

Indices are meant to reflect investable markets—not curate them.

Bitcoin treasury strategies are increasingly used by corporations of all sizes as a long-term capital-preservation tool. Removing these companies reduces the accuracy and completeness of MSCI’s indices, giving investors a distorted view of the corporate landscape.

Stability

The 50% threshold creates a binary cliff effect.
Bitcoin routinely moves 10–20% in normal trading. A company could fall in and out of index eligibility multiple times a year simply due to price action, forcing:

• Unnecessary turnover
• Additional tracking error
• Higher fund implementation costs

Index providers typically avoid rules that amplify volatility. This rule would introduce it.

5. The Market Impact of Exclusion

Forced Selling

If MSCI proceeds, passive index funds would need to sell holdings in affected companies.
Yet the real-world impact is marginal because:

• Strategy and ABTC are highly liquid
• Flows represent a tiny fraction of normal trading volume
• Active managers are free to continue holding or increasing exposure

Access to Capital

Analysts warn that exclusion could “signal” risk. But markets adapt quickly.
As long as a company is:

• Liquid
• Transparent
• Able to raise capital
• Able to communicate its treasury policy
  It remains investable. Index exclusion is an inconvenience—not a structural impairment.

Precedent Risk

If MSCI embeds asset-based exclusion rules, it sets a template for removing companies based on their savings decisions rather than their business fundamentals.

That is a path toward politicizing global benchmarks.

6. The Global Competitiveness Problem

Bitcoin treasury strategies are expanding internationally:

• Japan (Metaplanet)
• Germany (Aifinyo)
• Europe (Capital B)
• Latin America (multiple mining and infrastructure firms)
• North America (Strategy, ABTC, miners, and energy-Bitcoin hybrids)

If MSCI excludes these companies disproportionately, U.S. and Western companies are placed at a competitive disadvantage relative to jurisdictions that embrace digital capital.

Indexes are meant to reflect markets—not pick national winners and losers.

7. MSCI Already Knows That Exclusion Creates Distortion

MSCI’s recent handling of Metaplanet’s public offering shows it understands the risks of “reverse turnover.” To avoid index churn, MSCI chose not to implement the event at the time of offering.

This acknowledgement underscores a broader truth: rigid rules can destabilize indices.
A digital-asset threshold creates similar fragility on a much larger scale.

8. Better Alternatives Exist

MSCI can achieve transparency and analytical clarity without excluding lawful operating companies.

A. Enhanced Disclosure

Require standardized reporting of digital-asset holdings in public filings.
This gives investors clarity without altering index composition.

B. Classification or Sub-Sector Label

Add a category such as “Digital Asset Treasury–Integrated” to help investors differentiate business models.

C. Liquidity or Governance Screens

If concerns are about liquidity, governance, or volatility, MSCI should use the criteria it already applies uniformly across sectors.

None require exclusion.

9. Why the Proposal Should Be Withdrawn

The proposal does not solve a real problem.
It creates several:

• Reduces representativeness of global indices
• Violates neutrality by discriminating against a specific treasury asset
• Creates unnecessary turnover for passive funds
• Damages global competitiveness
• Sets a precedent for non-neutral index construction

Bitcoin is money. Companies should not be penalized for saving money—or for choosing a long-term treasury asset that is more liquid, more transparent, and more objectively priced than most corporate intangibles.

Indexes must reflect markets as they are—not as gatekeepers prefer them to be.

MSCI should withdraw the proposal and maintain the neutrality that has made its benchmarks trusted across global capital markets.

Disclaimer: This content was prepared on behalf of Bitcoin For Corporations for informational purposes only. It reflects the author’s own analysis and opinion and should not be relied upon as investment advice. Nothing in this article constitutes an offer, invitation, or solicitation to purchase, sell, or subscribe for any security or financial product.

This post MSCI Proposal Singles Out Bitcoin Treasury Companies and Undercuts Benchmark Neutrality first appeared on Bitcoin Magazine and is written by Nick Ward.

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Bitcoin Crime: Home Invasion, Sexual Assault, and $1.6 Million Theft Results in 7-Year Sentence

A Hong Kong man has been sentenced to seven years in a Canadian prison for participating in a violent home invasion that left a British Columbia family tortured and robbed of $1.6 million in Bitcoin.

Tsz Wing Boaz Chan, 35, flew from Hong Kong to Vancouver in early 2024 to take part in the meticulously planned attack, which authorities say involved extreme violence, sexual assault, and psychological torture over a 13.5-hour ordeal.

On the evening of April 27, 2024, four men, two dressed in Canada Post uniforms, gained entry to the Port Moody home of the targeted family. The attackers restrained the husband, wife, and young daughter, threatening their lives and forcing the daughter to simulate sexual assault while under duress, according to CBC reporting.  

The intruders also waterboarded the wife in front of her husband and beat him naked, threatening further violence if he did not provide access to his cryptocurrency accounts.

Court documents describe the attackers’ demands escalating from 200 bitcoin — worth roughly $26 million at the time — to 100 bitcoin, ultimately withdrawing about $1.6 million.

They carried out the crime after weeks of surveillance and planning, including planting cameras outside the family’s home. The attackers communicated through a man using a disguised voice over the phone, coordinating the assault and issuing threats.

The daughter escaped at around 8 a.m. the following morning and alerted authorities, ending the ordeal. Police later linked Chan to the crime through CCTV footage and DNA, although he had returned to Hong Kong prior to identification. He was arrested when he came back to Canada months later.

The Bitcoin theft was ‘elaborately planned’

Judge Robin McQuillan called the crime “elaborately planned” and noted the profound emotional and financial consequences for the family. Victim impact statements highlighted the ongoing trauma: the daughter said she now feels unsafe at home, while the father described losing decades of savings intended to support his family and pay off multiple mortgages. 

The family continues to struggle with the aftermath, including the psychological impact of nude videos and threats of social media exposure.

Chan, an out-of-work sailor and former waiter, reportedly received about $50,000 for his role in the heist and has been ordered to repay the amount. During sentencing, the judge observed that Chan was visibly distraught, noting his struggles with prison violence, back pain, and language barriers. 

Accounting for time already served, he faces five more years in custody.

The attack is part of a broader trend known as “wrench attacks,” in which bitcoin and crypto holders and their families are targeted globally for ransom due to the irreversibility and high value of digital assets. 

This post Bitcoin Crime: Home Invasion, Sexual Assault, and $1.6 Million Theft Results in 7-Year Sentence first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

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Bitcoin Price Rebounds to $86,000 as Deutsche Bank Flags Five Forces Behind the Sell-Off

The bitcoin price is coming off its worst week since February, sliding more than 30% from last month’s highs and reopening an old question for investors: why is this happening now? According to Deutsche Bank, the sell-off isn’t driven by a single catalyst but a combination of market psychology, macro pressure, and shifting investor behavior.

The bank points first to a broader risk-off mood. Bitcoin is behaving less like an independent monetary asset and more like an extended-duration tech stock — moving closely with the Nasdaq-100 as investors de-risk across the board. That correlation has tightened as macro uncertainty rises.

The second driver is the Federal Reserve. Jerome Powell’s recent comments threw cold water on hopes for a guaranteed December rate cut, though New York Fed President John Williams later softened the message. Higher-for-longer rates sap enthusiasm for speculative assets, and the Bitcoin price reaction is no exception.

Regulatory limbo is another weight. Progress on the Digital Asset Market Clarity Act has slowed in the Senate, muting institutional confidence just as new players were beginning to enter the market.

Meanwhile, institutional outflows are accelerating. Several large funds have been trimming positions through November, adding mechanical sell pressure. And long-term holders — some sitting on massive gains after multiple halving cycles — are taking profits into year-end, further amplifying downside momentum.

Bitcoin price traded near $86,000 Monday morning after a modest weekend bounce, recovering from Friday’s close around $84,53. The move raises a bigger debate: is this a healthy correction or the start of something deeper?

Bitcoin price and the Fed: Waller wants to cut ruts

Fed Governor Christopher Waller added nuance to the macro picture. He backed a December rate cut, citing weakening labor markets and stable inflation in the 2.4%–2.5% range. But he warned that January will be “tricky,” emphasizing a strictly data-dependent, meeting-by-meeting approach. 

Waller also recently met with Treasury Secretary Scott Bessent amid speculation about a potential Fed Chair nomination, noting that he supports continuing press conferences — though their format may evolve.

Pompliano: Bitcoiners are built for this volatility

Anthony Pompliano offered a wider lens on CNBC this morning, arguing that the Bitcoin price drawdown is historically normal — almost mundane — for seasoned holders. Over the last decade, Bitcoin has seen 21 drawdowns of 30% or more, he said, seven of which exceeded 50%. This level of volatility would resemble “a global financial crisis every year and a half” in traditional markets, but Bitcoin natives view it as routine.

The panic, he argued, is coming from newer Wall Street entrants who aren’t accustomed to such violent swings. Year-end incentives, portfolio rotation, and fear-driven selling are all contributing to the pressure.

But with volatility compressing compared to past cycles, Pompliano believes the current 35% pullback may represent a bottoming process rather than a deep, 70–80% bear-market collapse.

Leverage has also reset, he noted, with open interest sharply lower since the October liquidations. Combined with extreme readings in the Fear and Greed Index, he argues the market is setting the stage for stabilization and a gradual grind higher.

Pompliano says he’s still accumulating, expecting the Bitcoin price to maintain long-term annualized returns in the 20–35% range—lower than the last decade, but still stronger than equities.

Last Friday, the Bitcoin price entered one of its most fragile moments of the cycle, reflecting both price action and on-chain data. It fell to $80,524 on Friday, its lowest since April, dropping over 35% from its all-time high and wiping out all year-to-date gains, dragging overall market risk sentiment down.

Since then, the price rebounded to around $84,000, showing high volatility. Glassnode data revealed realized losses spiking to levels last seen during the November 2022 FTX collapse, with short-term holders—those who bought within 90 days—selling heavily. Realized-loss dominance surged into ranges typically associated with panic.

At the time of writing, the bitcoin price is at $86,003.

This post Bitcoin Price Rebounds to $86,000 as Deutsche Bank Flags Five Forces Behind the Sell-Off first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

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