Displaying items by tag: bitcoin

Cryptocurrencies tumbled as concerns over a broader U.S. stock selloff overshadowed recent efforts by President Trump to support the industry. Bitcoin dropped more than 3% in early Asian trading, while Ether sank as much as 6% to its lowest level since October 2023 before recovering some losses. 

The decline followed a sharp selloff in technology stocks, with the Nasdaq 100 plunging 3.8%, its worst session since October 2022. Despite Trump’s executive order to establish a U.S. Bitcoin reserve, investor sentiment remained fragile as macroeconomic risks took center stage. 

Analysts noted that leveraged crypto-related ETFs were among the hardest hit, with some plunging more than 30% in a single day. While Bitcoin hovered around $79,300, traders were eyeing key support levels at $73,000 and $70,000, where stronger buying interest could emerge.

Finsum: While many think of crypto as hedge against market volatility, we need to remember that those hedges are a little effective on the currency side. 

Cryptocurrency is making its way into retirement accounts, but it's not the right fit for every investor. Crypto IRAs, also known as bitcoin IRAs, allow individuals to hold digital assets like bitcoin and ether within tax-advantaged accounts. 

While these accounts offer potential tax benefits—especially within a Roth IRA—they come with high fees, regulatory uncertainty, and extreme price volatility. Unlike traditional brokerage firms, crypto IRA providers operate under different standards, adding another layer of risk. 

Some investors may find bitcoin ETFs a lower-cost alternative to direct crypto ownership within an IRA. Regardless of your approach, diversification remains crucial to balancing the risks and rewards of crypto in a retirement portfolio.

Finsum: Crypto is a very good alternative to integrate into the portfolio, but most investors either over or under index so be careful when integrating into your portfolio.

Former President Donald Trump’s newly announced sovereign wealth fund has sparked speculation that it may include Bitcoin and other cryptocurrencies. Given his administration’s support for digital assets, experts believe this fund could serve as a vehicle to invest in crypto without bureaucratic hurdles. 

Some argue that incorporating Bitcoin and other digital assets could bolster the U.S. economy while positioning the country as a leader in the crypto sector. However, skeptics highlight the risks of volatility, regulatory uncertainty, and governance challenges tied to managing crypto within a government-backed investment fund. 

Other nations, including Norway, already have exposure to Bitcoin through their sovereign wealth funds, further fueling debate over the potential impact of the U.S. following suit. 

Finsum: If implemented, this move could accelerate institutional adoption of crypto while reinforcing America’s role in the evolving digital asset landscape.

World Liberty Financial (WLF), a crypto project linked to Donald Trump, announced it raised $1 billion in token sales, while the newly launched $TRUMP memecoin soared to a $10 billion market valuation as Trump assumed his second term. 

Promising to usher in a "golden age" for cryptocurrencies, Trump has positioned himself as a pro-crypto leader, contrasting the regulatory stance of the previous administration. Launched two months before the election, WLF and its tokens, including $TRUMP and Melania Trump's $MELANIA coin, have sparked both excitement and ethical concerns.

The $TRUMP coin’s meteoric rise, briefly peaking at $74.59, highlights the speculative fervor in the market, though experts warn of potential legal and financial pitfalls. Critics argue these ventures blur the lines between political influence and speculative assets, raising red flags about conflicts of interest and regulatory oversight. 

Finsum: Despite skepticism, the launch has fueled a broader rally in cryptocurrency markets, with Bitcoin hitting record highs amid optimism about Trump’s crypto-friendly policies.

As Donald Trump prepares for his second term, his pro-crypto stance, including plans for a Bitcoin strategic reserve, raises concerns about government control over decentralized finance. While Bitcoin was created as a rebellion against centralized authority, Trump's embrace of it signals a potential shift toward institutionalization and state dominance. 

Policies like incentivizing miners to move to the U.S. and strict regulatory measures could centralize Bitcoin’s network, undermining its decentralized ethos. Government partnerships with major crypto firms risk turning Bitcoin into a tool of surveillance and control, echoing Silicon Valley’s transformation into a hub for surveillance capitalism. 

This trajectory threatens Bitcoin’s identity, potentially splitting the community between “official” and underground versions of the currency. 

Finsum: Bitcoin’s reputation remains as important as ever in its ability to navigate regulatory challenges in 2025.