Bitcoin surged to a record $106,509 on Sunday before settling at $103,804.71 on Monday as investors watched for an expected interest rate cut from the Federal Reserve later this week. The flagship cryptocurrency is up nearly 8% this month and an astonishing 145% for the year, reflecting growing confidence in its future. Ether also rose, approaching the $4,000 mark, while the broader crypto market remained steady.
Anticipation of a 25-basis-point interest rate cut has fuelled optimism among Bitcoin investors. Lower rates, which weaken the dollar and expand the money supply, have historically correlated with higher Bitcoin prices. Bitcoin’s performance is now likened to tech stocks, which also thrive in low-rate environments.
Meanwhile, shares of MicroStrategy jumped 4% after the company announced its inclusion in the Nasdaq 100 and QQQ ETF. This news further bolstered market sentiment, as institutional interest in Bitcoin and related stocks continues to rise.
The US Supreme Court has dismissed an appeal by Nvidia, rejecting its attempt to block a securities fraud lawsuit accusing the chipmaker of misleading investors about its reliance on the volatile cryptocurrency market. The decision upholds a lower court’s ruling, allowing a 2018 class-action lawsuit led by Swedish investment firm E. Ohman J:or Fonder AB to proceed. The justices, offering no explanation in their one-line order, had previously expressed hesitation about addressing the case’s technical and factual complexities during November arguments.
The lawsuit centres on allegations that Nvidia’s leadership, including CEO Jensen Huang, downplayed how much of the company’s 2017-2018 revenue growth stemmed from crypto-related purchases. Nvidia’s chips gained popularity during the cryptocurrency boom but faced a sales slump when the market cooled in late 2018, leading to a drop in the company’s stock price. A federal judge initially dismissed the case, but the Ninth Circuit Court of Appeals revived it, concluding that plaintiffs sufficiently alleged Nvidia knowingly made misleading statements.
Nvidia has denied wrongdoing and vowed to continue its defence, emphasising the need for clear standards in securities litigation to protect shareholders. However, the plaintiffs argue their case is well-supported by expert analysis and insider accounts. Deepak Gupta, representing the shareholders, called the Supreme Court’s dismissal a victory for corporate accountability. President Biden’s administration backed the investors, reflecting broader concerns about corporate transparency in securities practices.
This case mirrors another recent Supreme Court decision involving Meta, where justices also dismissed a securities fraud lawsuit. Both rulings highlight the challenges of navigating legal thresholds for investor class actions under stringent US securities laws.
Australia‘s Federal Court has fined Bit Trade, the local operator of cryptocurrency exchange Kraken, A$8 million ($5.1 million) for unlawfully offering credit facilities to over 1,100 customers. The ruling came after the Australian Securities and Investments Commission (ASIC) filed civil proceedings against the company, accusing it of non-compliance with regulations for its margin trading product.
ASIC revealed that Bit Trade failed to assess whether its margin extensions—a form of credit repayable in digital assets like bitcoin or national currencies—were suitable for customers. This led to combined customer losses exceeding $5 million, while Bit Trade charged over $7 million in fees and interest. The court classified the margin extension product as a credit facility requiring a specific consumer suitability document, which the company had not provided.
In a statement, Kraken expressed disappointment, arguing the ruling could stifle economic growth in Australia. The exchange emphasised its willingness to work with regulators to shape the evolving cryptocurrency framework. The case marks a milestone for ASIC, as it is the first penalty imposed on a company for failing to provide a target market determination for a financial product.
Japan is set to introduce its first cryptocurrency-backed credit card, thanks to a partnership between Slash Vision Labs and a Japanese credit card issuer. While specific details about the issuer remain under wraps, the deal is expected to bring the Slash Card to market in 2025. The card will be fully compliant with Japan’s cryptocurrency and payment regulations and aims to make cryptocurrency payments more accessible, with unique features such as ‘Pay-to-Earn’ airdrops for global and domestic crypto projects.
Slash, known for supporting memecoin projects like Chiitan Coin (CTAN), has also made moves to integrate crypto into various aspects of Japanese pop culture. Through its platform, Slash has already enabled payments for manga content on Comilio, a platform allowing users to pay for manga with cryptocurrency. The company’s broader mission includes introducing cryptocurrency payment solutions and expanding Web3 opportunities in Japan.
The move aligns with Japan’s growing interest in integrating cryptocurrencies into mainstream finance and entertainment, marking another step in the country’s embrace of digital assets and their growing role in daily transactions.
As part of the partnership, Binance will also include USDC in its corporate treasury operations, highlighting its growing use in on-chain financial transactions. Circle, in return, will provide the necessary technology, liquidity, and tools to enhance USDC’s infrastructure, supporting its use in a range of financial services.
Both CEOs expressed optimism about the partnership’s potential. Richard Teng of Binance highlighted that it would create new opportunities for users to engage with USDC through more trading pairs and promotions. Jeremy Allaire of Circle emphasised the potential for USDC to become ubiquitous on Binance’s platform, strengthening its position in the global digital asset market.
The partnership comes amid the increasing adoption of stablecoins in the financial world, with more companies exploring their use as a payment method and a bridge into the crypto market. Stablecoins like USDC have become key drivers of crypto adoption, facilitating billions of transactions worldwide.
Microsoft shareholders have voted against a proposal to add Bitcoin to the company’s balance sheet during the firm’s annual meeting on 10 December. The resolution, presented by the National Center for Public Policy Research (NCPPR), suggested that diversifying into Bitcoin could offer significant value to shareholders by tapping into the growing cryptocurrency market.
The NCPPR argued that Bitcoin adoption would not only generate potential profits but also mitigate risks for Microsoft’s investors. The proposal recommended investing between 1% and 5% of the company’s profits into Bitcoin, citing the example of major investors like BlackRock, who offer Bitcoin ETFs. However, the company’s board dismissed the proposal, stating that it was unnecessary and that Microsoft already carefully considered its investments.
Microsoft’s board emphasised that Bitcoin’s volatility made it unsuitable for the company’s treasury, which requires stable and predictable investments. Despite the push from Bitcoin proponents like Michael Saylor, who argued that Bitcoin could add trillions to Microsoft’s market value, shareholders sided with the board’s recommendation, rejecting the resolution. The NCPPR has made a similar proposal to Amazon, which will be discussed at its 2025 meeting.
The Bank of England is exploring how emerging privacy technologies, such as zero-knowledge proofs (ZK-proofs), could enhance data privacy in a potential digital pound. In its report ‘Enhancing the Privacy of a Digital Pound,’ the bank suggests these technologies may limit data sharing, giving users greater control over their information while maintaining privacy between the central bank and payment intermediaries.
Following its 2023 public consultation, the Bank of England, alongside HM Treasury, assured the public that personal data would remain inaccessible to both the government and the central bank. Collaborating with MIT’s Digital Currency Initiative, the bank continues to research privacy-enhancing technologies while acknowledging the challenges of balancing privacy with regulatory requirements.
The digital pound initiative began in 2020 and has since undergone detailed evaluations. While no decision has been made on launching the currency, the central bank emphasises the need to adapt to declining cash use and advancements in payment technologies.
A new report by Bitcoin exchange River reveals that over 13 nations now hold Bitcoin, with El Salvador standing out as the only country to make direct purchases. President Nayib Bukele’s government has accumulated 5,900 BTC, achieving profits of $333.59 million from an initial $269.74 million investment, fuelled by Bitcoin’s recent surge past $100,000.
The United States leads global holdings with 208,100 BTC, most acquired through enforcement actions. The United Kingdom holds 61,200 BTC, while China has 15,000 BTC. Other nations, such as Bhutan and Norway, rely on mining or wealth funds to gain Bitcoin exposure, avoiding direct purchases due to political risks and lack of secrecy.
El Salvador, which adopted Bitcoin as legal tender in 2021, faces scrutiny from the International Monetary Fund. The country is negotiating a $1.3 billion loan, potentially making Bitcoin adoption voluntary instead of mandatory for businesses. This agreement could secure an additional $2 billion in funding from international institutions if finalised.
Russian State Duma Deputy Anton Tkachev has proposed the creation of a strategic bitcoin reserve for the nation. Tkachev, representing the New People party, submitted the proposal to Finance Minister Anton Siluanov, advocating for bitcoin reserves to complement Russia’s traditional currency reserves.
In the proposal, Tkachev highlighted the risks of relying solely on traditional reserves like the dollar, euro, and yuan, citing their vulnerability to inflation and international sanctions. He argued that bitcoin could be an independent financial buffer to enhance Russia’s economic stability.
This move aligns with a growing trend among nations, including El Salvador, Brazil, and Poland, to adopt Bitcoin reserves. Recent comments from President Vladimir Putin, affirming the legality and inevitability of Bitcoin’s growth in Russia, may bolster support for the initiative.
The National Center for Public Policy Research, a Washington DC-based think tank, has proposed that Amazon consider adopting a Bitcoin corporate treasury strategy. The proposal will be tabled at the company’s April 2025 shareholder meeting, highlighting concerns over inflation risks eroding Amazon’s $88 billion in cash and short-term cash equivalents. According to the proposal, the Consumer Price Index (CPI) underestimates true inflation, with authors suggesting that the actual rate may be twice the reported figure, posing risks to shareholder value.
Bitcoin is presented as a potential hedge against these economic pressures. The think tank points to Bitcoin’s performance as evidence, noting that the cryptocurrency outperformed corporate bonds by 126% over the past year and saw a 1,246% increase over the last five years. They recommend Amazon allocate at least 5% of its assets to Bitcoin to safeguard its financial reserves, drawing on the success of MicroStrategy’s own Bitcoin treasury strategy as a proven example. MicroStrategy’s holdings are currently valued at over $40 billion, putting the company at about $17 billion in profit.
The idea is gaining traction among other companies as well. MARA, formerly Marathon Digital, recently raised $1 billion through a 0% interest convertible note offering to purchase 6,474 Bitcoin for its corporate treasury. Additionally, artificial intelligence firm Genius Group has converted a portion of its treasury into Bitcoin, having acquired 110 BTC at an average price of $90,932 each. These moves suggest that a Bitcoin treasury strategy is becoming an increasingly popular choice for companies looking to strengthen their financial positions amid market uncertainty.
