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.
El Salvador has signed a mutual agreement with Argentina to advance their digital asset industries through collaboration and training. The partnership, announced by Juan Carlos Reyes, president of El Salvador’s National Commission of Digital Assets, pairs Argentina’s innovative blockchain sector with El Salvador’s expertise in digital regulation.
The agreement focuses on sharing knowledge and refining regulatory frameworks, with Reyes highlighting the benefits of cooperation. He noted El Salvador’s early adoption of digital asset regulations and its ongoing discussions with over 25 other nations for similar collaborations.
Reyes urged global regulators to act swiftly in creating effective crypto rules, warning against delays that could expose the industry to scams and financial crimes. El Salvador’s commitment to cross-border partnerships aims to foster global progress in the digital asset market.
Hong Kong is moving quickly to position itself as a global crypto hub, with plans to expedite licensing for crypto trading platforms next year. Joseph Chan, Acting Secretary for Financial Services, announced a streamlined licensing process and the establishment of a consultative panel to ensure sustainable and secure innovation in the sector.
The government is also considering broader financial policies, including potential investments in digital assets. While crypto remains a minimal part of the Exchange Fund’s strategy, Chan said external managers could explore diversified holdings.
These steps align with Hong Kong’s earlier efforts to lead in crypto innovation. A proposed stablecoin framework and a plan to waive taxes on crypto gains for wealthy investors reflect the city’s ambitions to attract global asset managers and strengthen its financial hub status.
SEC commissioner Hester Pierce has called on the newly elected government to reform cryptocurrency regulations and address the challenges faced by the digital asset industry. She criticised the current bottleneck of government rules hindering the sector’s access to essential services and urged a collaborative approach to create a clear regulatory framework.
Pierce emphasised that regulators must work alongside industry players to assess existing rules and make necessary adjustments. She advocated for public participation in shaping policies to ensure a transparent and inclusive process that benefits both regulators and the market.
Speaking to Fox Business, Pierce also praised Paul Atkins, the newly appointed SEC chairman, for his efficient and problem-solving approach to governance. While she refrained from commenting on Ripple’s ongoing legal battle, Pierce highlighted the inefficiency and high cost of such lengthy lawsuits as a method of regulating the industry.
Argentina’s financial regulator has approved the entry of US crypto-related exchange-traded funds (ETFs) into its market, opening new investment opportunities for local traders. Under the CEDEAR programme, regulated by RG No. 1030, Bitcoin and Ethereum spot ETFs are now available for trading after a six-year prohibition under Law No. 27440. This move marks a significant step towards integrating digital assets into Argentina’s capital markets.
The Comisión Nacional de Valores (CNV) has also authorised ETFs tied to gold and the S&P 500 index, alongside Chinese stock market indexes. These offerings are part of broader efforts to diversify investment options and promote access to passive management indices, commodities, and digital assets. CNV President Roberto E. Silva highlighted the innovative nature of these approvals, aiming to attract more investors to the local market.
This development aligns with President Javier Milei’s strategy to counter hyperinflation and stimulate Argentina’s digital economy. With inflation dropping from nearly 300% in April 2024 to below 200%, the introduction of crypto ETFs signals a continued push towards modernising the financial system while embracing digital currency innovation.
Despite cryptocurrency’s volatility, 30% of workers surveyed say they would consider receiving their salaries in digital assets, according to a new study by Clarify Capital. The study, which questioned 800 workers and 200 business owners, revealed that 20% believe crypto will become a regular part of their paychecks within the next five years, with Bitcoin being the most popular choice. A significant 72% of respondents expressed a preference for receiving their wages or bonuses in Bitcoin.
Dogecoin and Litecoin also emerged as other leading choices, with 14% and 16% of surveyed employees respectively favouring these cryptocurrencies for compensation. Interestingly, Gen Z workers — those born between 1997 and 2012 — showed the most enthusiasm, with nearly 40% expressing interest in receiving their pay in crypto. Millennials followed with 32%, while just 23% of Gen X workers shared the same sentiment.
The study also highlighted the growing appeal of crypto within the business lending sphere. Around 25% of business owners indicated they would consider taking a crypto loan to expand their operations, with sectors such as IT, retail, and finance leading this trend. Among those surveyed, 10% of businesses plan to actively pursue crypto loans in 2025, with Gen Z and millennial business owners leading the charge.
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.
Australia’s corporate regulator has proposed significant changes to crypto regulation, requiring most firms dealing in digital assets to obtain costly licences. The Australian Securities and Investment Commission (ASIC) aims to classify many crypto assets as financial products, subjecting exchanges and other platforms to the Australian Financial Services Licence (AFSL) and Market Licence frameworks.
While larger companies may adapt to the changes, smaller firms and startups face challenges due to increased compliance costs. Some experts warn this could lead to an exodus of crypto innovators to offshore markets. Joni Pirovich, a crypto lawyer, noted that the new rules make launching in Australia as costly as overseas operations, leaving local startups at a disadvantage.
Despite these concerns, industry leaders see the guidance as a step towards much-needed regulatory clarity. ASIC Commissioner Alan Kirkland stressed the importance of consumer protection and market integrity while promoting responsible innovation. The regulator is seeking feedback on the proposed rules, with final guidance expected by mid-2025.
Safe, the multsignature wallet and digital assets platform, has announced plans to launch a blockchain transaction processor network in 2025. Named Safenet, the network aims to provide instant cross-chain payments, eliminating the delays often experienced during blockchain transactions. Inspired by VisaNet, the network will act as a connecting layer for existing blockchains, allowing users to interact with multiple networks through a single account.
Safenet, which will be powered by processors, is designed to offer a seamless experience similar to traditional payment networks, where transactions are processed instantly. The system will also integrate fraud checks, compliance measures, and security protocols to ensure safe transactions. Initially, Safenet will support cross-chain accounts and liquidity functions, with plans to expand its services in the future.
The open system of Safenet allows more processors to join, offering additional services like security, compliance, and automation. Validators will earn rewards by validating transactions and staking in the ecosystem. Schor also mentioned that the platform could offer users the ability to access assets with partial collateral, similar to how traditional banks manage mortgages.
The Safenet network is expected to go live in 2025, with an alpha version set for the first quarter. A validator network is planned for the second quarter, and the full protocol will be launched later in the year, bringing new opportunities to the crypto space.
