### Bitcoin Price Update

**Bitcoin** experienced a notable decline early Wednesday, retreating from its record peak reached earlier this week. As investors shift their focus towards the upcoming **Federal Reserve** interest rate decision, the world's leading cryptocurrency has seen a **3.2% drop** in value over the past 24 hours, now priced at **$103,989** according to **CoinDesk** data.

### Market Reactions

The broader cryptocurrency market saw a positive surge on Tuesday, credited to **Ripple**, the payment platform behind the **XRP** token. Ripple announced the launch of trading for a new stablecoin named **RLUSD**, which contributed to the overall market momentum.

![Bitcoin Price Movement](https://s.yimg.com/ny/api/res/1.2/DwFCSOwCl4uFDXqoGzKxXg--/YXBwaWQ9aGlnaGxhbmRlcjt3PTY0MDtoPTEzMA--/https://media.zenfs.com/en/Barrons.com/12ea0f43d8f8307249a68d1cb2e0587e)

With the Fed's decision looming, traders are keenly observing market trends and potential implications for the cryptocurrency landscape.

Bitcoin  price fell early Wednesday, pulling back somewhat from a record high earlier this week as investors’ attention turned to the next interest rate decision by the Federal Reserve.  The world’s largest cryptocurrency is down 3.2% over the last 24 hours to $103,989, according to CoinDesk data.  Cryptocurrencies across the board got a boost Tuesday after Ripple, the payment platform that issues the digital token  XRP  which used to settle payments on its platform, announced the beginning of trading of a new stablecoin under the name RLUSD.

Bitcoin's Record Highs Hit a Speed Bump: What the Fed's Rate Decision Means for Crypto

### Bitcoin's Journey to Wall Street

From **MicroStrategy's** groundbreaking investment to major banks embracing cryptocurrencies, Bitcoin is poised to enter its **Wall Street era**.

In August 2020, **Michael Saylor** announced MicroStrategy's conversion of **$250 million** in Treasury reserves to Bitcoin, which was initially dismissed by Wall Street analysts as a reckless gamble. Fast forward to today, and those same banks are now scrambling to engage in **Bitcoin-collateralized lending**, recognizing its superior qualities as collateral.

### 1. Traditional Banking Bends the Knee to Bitcoin

MicroStrategy's approach has fundamentally changed how public companies view Bitcoin as a **treasury asset**. Instead of merely holding Bitcoin, the firm has pioneered a model that leverages public markets to enhance its crypto position. This could lead to a **10-for-1 stock split** in 2025, demonstrating Bitcoin's deep integration into traditional finance.

### 2. Borders Fall as Capital Flows Freely

As nations compete for Bitcoin business, we expect to see new **tax incentives** for Bitcoin investors and businesses in 2025, alongside fast-track visa programs for crypto entrepreneurs. Countries are now vying for Bitcoin mining operations and trading venues, pushing traditional financial centers to adapt to Bitcoin's role in sovereign finance.

### 3. Banks Race Against Obsolescence

The necessity for innovation in debt markets has transformed Bitcoin into a cornerstone of corporate treasury management. Companies like **Marathon Digital Holdings** are following MicroStrategy's lead, which has captured the attention of treasury managers and CEOs alike.

### 4. Bitcoin and Crypto M&A Intensifies

As regulatory clarity emerges, banks will face a choice between building or acquiring capabilities in the Bitcoin and lending market. We predict at least one of the top 20 U.S. banks will acquire a crypto business this year, mirroring past financial technology integration patterns.

### 5. Public Markets Validate Bitcoin Infrastructure

The cryptocurrency industry is set for a breakthrough year in public markets, with expectations for a high-profile **crypto IPO** exceeding **$10 billion** in valuation. Major digital asset companies are now processing billions in daily transactions, akin to traditional banks, marking a significant shift in the financial landscape.

The next chapter of finance will be defined by those who embrace these changes, ensuring their survival in the evolving economic landscape.

From MicroStrategy splitting its stock to major banks acquiring crypto firms, bitcoin is about to enter its “Wall Street” era. 

5 Bold Predictions for Bitcoin's Rise on Wall Street by 2025

Quantum computing often raises concerns about **Bitcoin’s future**, with some fearing that these powerful machines could one day compromise its security. However, a closer look reveals that quantum computing is far from posing any immediate threat to Bitcoin. Here’s why bitcoin investors, holders, and enthusiasts can remain confident.

**Bitcoin’s Cryptographic Foundations**  
Bitcoin’s security relies on two main cryptographic tools:  
1. **ECDSA (Elliptic Curve Digital Signature Algorithm)**: Protects private keys and authorizes transactions.  
2. **SHA-256**: Ensures data integrity, obfuscates addresses, and powers Bitcoin’s Proof-of-Work mining.

Quantum computing’s theoretical threat to Bitcoin lies in the possibility of breaking these cryptographic tools, specifically through:  
- **Shor’s Algorithm**: Could derive private keys from public keys.  
- **Grover’s Algorithm**: Could reduce the effort required to reverse the SHA-256 hashing mechanism.

While these threats are theoretically possible, quantum computing is far from achieving the power needed to execute them.

**How Far Are We from Quantum Computers That Could Threaten Bitcoin?**  
Current quantum computers are **decades away** from being able to break Bitcoin’s encryption. To break **ECDSA** within an hour, approximately **317 million physical qubits** would be required. Today’s quantum computers have around **100 qubits**. Even if the timeline were extended to **five years**, it would still take around **6,000 qubits** to crack ECDSA. Similarly, while **Grover’s Algorithm** could theoretically reduce the effort needed to crack SHA-256 from 2^256 operations to 2^128, this still represents an astronomically large number of computations.

For context, Google’s latest quantum processor, **Willow**, has just **105 qubits**. According to physicist **Sabine Hossenfelder**, practical applications of quantum computing are about **1 million qubits away** and remain **decades** from reality. When it comes to breaking cryptographic code, the requirement jumps to **13 million qubits** or more.

Based on **Moore’s Law**, it’ll likely be at least **a decade or longer** before quantum computers threaten Bitcoin in its current state.

![Quantum Advancement Timeline](https://cdn.prod.website-files.com/6626a1a60388917c4d556e83/6761df86689b3dceb8988625_7ed34d57.jpeg)  
*Source: [Introduction to Quantum Computing for Business](https://quantumcomputingforbusiness.com/essentials/timelines/)*

**Quantum Hype vs. Reality**  
Even Google’s much-hyped claims of “quantum supremacy” have faced skepticism. **IBM** has pointed out that the same calculations could be achieved using classical supercomputers in reasonable timeframes. **Kevin Rose**, a former senior product manager at Google, noted that while Willow’s 105 qubits represent progress, it’s a far cry from the **13 million qubits** needed to break Bitcoin’s encryption.

**Why Bitcoin Is Resilient to Quantum Advances**  
Bitcoin’s design gives it built-in advantages against attacks:  
- **Difficulty Adjustment**: Bitcoin’s Proof-of-Work system adjusts mining difficulty every 2,016 blocks to maintain a consistent block time of ~10 minutes. If a quantum computer were to mine blocks faster, the network would adapt, preventing unfair advantages.  
- **Public Key Security**: Public keys are only revealed when you spend coins. The best practice is never to **reuse addresses** to keep funds secure, even against quantum threats.  
- **Hash-Obfuscated Addresses**: Addresses based on hashed public keys (p2pkh) add another layer of protection, making it more difficult for attackers to exploit quantum weaknesses.

These features mean that even if quantum computers could break all of Bitcoin’s encryption tomorrow, not every wallet would be vulnerable. The network can react to emerging threats in real-time.

**Preparing for the Future: Bitcoin’s Ability to Adapt**  
If quantum computing does eventually threaten current cryptography, Bitcoin has options:  
- **Upgrades**: As Satoshi Nakamoto suggested in 2010, the network could transition to more quantum-resistant algorithms should the need arise, such as upgrading from SHA-256 to SHA-512.  
- **Community-Driven Solutions**: Bitcoin’s decentralized governance allows for swift, collective decisions. Developers are working on solutions, like a soft fork proposal called **QuBit** by Bitcoin developer Mark Erhardt, which introduces post-quantum public keys.

As Satoshi stated, SHA-256 is much stronger than most other cryptographic algorithms, meaning that quantum computers pose an even bigger risk to other critical web infrastructures.

**Quantum Threats Aren’t Just a Bitcoin Problem**  
Quantum computing doesn’t only challenge Bitcoin—it threatens **all cryptographic systems**, including:  
- Banking security  
- Secure communications  
- Internet encryption as a whole  
This shared risk is driving global research into post-quantum cryptography. The world is aware of the potential threat and is actively developing solutions.

Bitcoin is uniquely positioned to implement a solution due to its decentralized nature and built-in incentive structure. If a new threat emerged that could weaken the security of the trillions of dollars stored in the network, users would respond swiftly, pouring energy and resources into strengthening the network. In contrast, re-building and re-starting a global bank’s infrastructure could take much longer than executing a soft fork in the Bitcoin code.

**The Bottom Line: Bitcoin Is Built to Evolve**  
Quantum computing remains in its infancy, with the technology needed to challenge Bitcoin’s security likely **decades away**. In the meantime, Bitcoin’s adaptability, strong cryptographic foundation, and decentralized governance position it to meet any challenges head-on. Quantum FUD (fear, uncertainty, and doubt) shouldn’t overshadow Bitcoin’s resilience and potential. While quantum computing advances, so will Bitcoin’s ability to evolve and remain secure.

Quantum computing often raises concerns about Bitcoin’s future, with some fearing that these powerful machines could one day compromise its security. Here’s why bitcoin investors, holders, and the like can remain confident.

Why Bitcoin Isn't Threatened by Quantum Computing: Debunking the Myths

Bitcoin is **soaring** above **$100,000**, marking a significant milestone as it enters **uncharted waters**. While Bitcoin rallies, many **altcoins** are still lagging behind. Market analysts suggest that an **altcoin season** is on the horizon, which could see altcoins like **XRP** and **Solana** begin to thrive.

### Current Market Overview
Bitcoin's impressive performance this year has seen it rise by **150%**, while Ethereum, the second-largest cryptocurrency, has only managed a **69% increase**. Unlike Bitcoin, Ethereum has yet to reclaim its all-time high from the previous bull market in **2021**. Despite this, analysts believe Ethereum will continue to lead the charge into altcoin season.

### What is Altcoin Season?
**Altcoin season** refers to a period where many altcoins experience a surge in price, usually following a cooldown in Bitcoin's momentum. During such times, Bitcoin's dominance of the market often drops below **40%**. Currently, Bitcoin holds **54%** of the total **$3.86 trillion** cryptocurrency market. Bobby Zagotta, CEO of **Bitstamp USA**, has stated that **altseason** is imminent, with altcoins beginning to outperform Bitcoin and reach new market capitalizations.

### Ethereum vs. Solana
Ethereum's position as the altcoin leader could face challenges from **Solana**, which has seen its price more than double this year. Notably, Solana has attracted more new developers than Ethereum, pointing toward its growing influence in the **DeFi** space. Anmol Singh from **Zeta Markets** believes Solana is just beginning its ascent and could dominate the market by **2025**.

### Regulatory Landscape
Retail trading has historically driven altcoin rallies, with **XRP’s** recent surge being fueled by a retail frenzy in **South Korea**. However, regulatory uncertainty has often hampered institutional investment in altcoins. This landscape could change with the anticipated **crypto-friendly policies** from the incoming U.S. administration under President-elect **Donald Trump**. Analysts believe that clearer regulations could lead to a wave of adoption for altcoins and potentially unlock significant investment opportunities.

### The Future of Altcoins
With over **$2 billion** in inflows into **Ethereum** exchange-traded funds this month, there are indications that investors are beginning to pile into altcoins. Regulatory clarity may also pave the way for a wave of **crypto ETF approvals** next year, allowing large capital influxes that could significantly boost altcoin prices. As we move forward, the dynamics of the cryptocurrency market are poised for an exciting transformation with the potential for **massive growth** in altcoins.

Bitcoin continues to soar after crossing $100,000 earlier this month. Altcoins have yet to take off. Market analysts say altcoin season is imminent. 

Bitcoin Breaks $100,000: What This Means for Altcoins Like XRP and Solana

### A Peek into Their Investment Strategy

Brennan and Erin Schlagbaum, a millennial couple from Texas, **manage a seven-figure portfolio** that reflects a strategic approach to investing. **Their wealth is primarily allocated** in three Exchange-Traded Funds (ETFs), showcasing their preference for diversified investments.

![Brennan and Erin Schlagbaum](https://i.insider.com/6761c9d1ccd8dfcfcd7faf26?width=700)

### Key Investments

- **ETFs**: The couple's main focus is on three ETFs, which they believe provide stability and growth potential.
- **Meta Platforms**: Brennan highlights his investment in Meta Platforms, stating that purchasing shares at **$97 in 2022 was his biggest win** ever.
- **Bitcoin Holdings**: They also own **1.5 Bitcoin**, indicating their belief in the cryptocurrency's long-term value.

This strategic mix of investments reflects their confidence in both traditional markets and emerging technologies like cryptocurrency. Their story serves as an inspiration for those looking to balance their investment portfolios effectively.

Buying Meta Platforms at $97 in 2022 was "my biggest win of all time," says investor Brennan Schlagbaum.

Discover How This Millionaire Couple Balances Their Wealth with Bitcoin and ETFs

### Hong Kong's Regulatory Push for Cryptocurrency Exchanges

Hong Kong's **securities regulator** has made a significant move by approving **four cryptocurrency exchanges** as part of its strategy to enhance its status as a **global hub** for digital asset trading. This initiative aims to maintain Hong Kong's allure as a **financial centre** amidst growing competition.

The **Hong Kong Securities and Futures Commission** has granted licenses to:
- **Accumulus GBA Technology (Hongkong) Co.**
- **DFX Labs Company**
- **Hong Kong Digital Asset EX**
- **Thousand Whales Technology (BVI)**

With these new approvals, the total number of licensed virtual asset trading platforms in Hong Kong has now reached **seven**. Previously, the city had approved three other platforms: **HashKey**, **OSL**, and **HKVAX**.

Nick Ruck, director at **LVRG Research**, emphasized that the introduction of new trading platforms reflects Hong Kong's **long-term vision** and commitment to the digital asset space. He noted that the international race to establish the world's **crypto hub** has intensified, especially as companies look to jurisdictions like **Singapore** and **Dubai**.

The latest approvals were part of the **"swift licensing process"** implemented by the securities watchdog. Notably, in April, Hong Kong launched **Asia's first spot Bitcoin and Ether exchange traded funds (ETFs)**, following the U.S. debut of its first spot Bitcoin ETFs earlier in the year. These ETFs are designed to track **Bitcoin prices**.

Analysts believe that increasing the number of trading platforms will lead to a reduction in **crypto ETF management fees**, making these investment products more appealing to investors.

In a broader context, Bitcoin has seen a **remarkable surge of over 50%** since the pro-crypto Donald Trump won the U.S. presidential election on November 5, reaching a record high of **more than $107,000** recently.

Hong Kong's securities regulator on Wednesday approved four cryptocurrency exchanges in the city's latest effort to stay competitive in a race to become a global centre for digital asset trading. Hong Kong has been promoting itself as a hub for assets such as cryptocurrencies in a effort to maintain its attractions as a financial centre. The Hong Kong Securities and Futures Commission said it had granted licences to Accumulus GBA Technology (Hongkong) Co., DFX Labs Company, Hong Kong Digital Asset EX, and Thousand Whales Technology (BVI).

Hong Kong Boosts Crypto Landscape with Approval of Four New Exchanges

Investing.com reports that **BlackRock** (NYSE: BII) has identified **Bitcoin** and **gold** as promising options for portfolio diversification amidst increasing market volatility. In their comprehensive **2025 Global Outlook**, BlackRock highlights Bitcoin's unique attributes, such as its **fixed supply** and potential for wider acceptance as a payment method.

### Bitcoin: A Unique Diversifier

According to **Samara Cohen**, Chief Investment Officer of ETFs and Index Investments at BlackRock, "**Bitcoin’s role as a store of value and payment system** makes it a potential diversifier." The report emphasizes that Bitcoin’s **historical correlation with equities is limited**, which further supports its appeal as a diversification tool.

### The Correlation with Equities

BlackRock states, "**Bitcoin’s correlation to global equities remains limited**, even with occasional spikes." The firm sees no fundamental reason for Bitcoin to be aligned with major risk assets in the long term.

### Gold's Role in Inflationary Times

Meanwhile, **gold** continues to be a crucial asset in portfolios, especially as central banks are increasing their reserves in response to rising inflation. BlackRock points out that gold has gained traction as an **inflation hedge**, particularly as traditional reserve currencies face challenges. The report notes, "**Gold has surged** as investors seek to bolster portfolios against higher inflation."

### Market Dynamics and Future Expectations

Moreover, BlackRock emphasizes that **structural shifts**, rather than typical business cycles, are currently influencing market dynamics. They predict that inflation will remain above target due to **geopolitical tensions**, **AI investments**, and an **aging workforce**. This scenario highlights the necessity for **dynamic, diversified portfolios** as modest Fed rate cuts and rising Treasury yields unfold.

**In summary, BlackRock’s insights suggest that incorporating both Bitcoin and gold into investment strategies could provide essential protection against market fluctuations and inflationary pressures.**

BlackRock says diversify your portfolio with gold and bitcoin

BlackRock Recommends Gold and Bitcoin for Portfolio Diversification: Here's Why

### Bitcoin Price Edges Down After New All-Time High

**Bitcoin (BTC)** price has slightly declined during the Asian session on Wednesday, following a stunning new all-time high of **$108,353** the previous day. The technical indicators suggest a potential **short-term correction** for Bitcoin and its counterparts.

### Bitcoin Bulls Show Signs of Exhaustion

After a **3.32%** rally last week, Bitcoin reached its peak at **$108,353** but is now trading down around **$105,019**. If the price closes below the **$101,109** support level, it could further decline towards **$90,000**. The **Relative Strength Index (RSI)** currently reads **66**, indicating a decrease in bullish momentum and potential for a sharper price drop if it falls below **50**.

![BTC/USDT daily chart](https://editorial.fxsstatic.com/miscelaneous/BTCUSDT_2024-12-18_09-06-36-638700914525464771.png)

*BTC/USDT daily chart*

If BTC can break above its ATH of **$108,353**, it could target a new ATH of **$119,510**, aligned with the **Fibonacci extension** from the previous highs.

### Ethereum Faces Resistance at $4,000

**Ethereum (ETH)** has experienced a rejection at the **$4,000** level, trading down around **$3,858** after a **2.34%** decline. Continued resistance at **$4,000** may lead ETH to retest its weekly support at **$3,522**. The **RSI** reads **57**, indicating early signs of bearish momentum.

![ETH/USDT daily chart](https://editorial.fxsstatic.com/miscelaneous/ETHUSDT_2024-12-18_09-01-50-638700915015117818.png)

*ETH/USDT daily chart*

A break above **$4,000** could see ETH rally up to its previous high of **$4,488**.

### Ripple Shows Indecisiveness

**Ripple (XRP)**, having found support around **$1.96**, rallied **16%** but faces slight rejection near the **$2.66** level, currently trading around **$2.53**. If this resistance continues, XRP could decline to retest **$2.21**. The **RSI** at **65** suggests indecisiveness among traders.

![XRP/USDT daily chart](https://editorial.fxsstatic.com/miscelaneous/XRPUSDT_2024-12-18_09-26-03-638700915517915991.png)

*XRP/USDT daily chart*

Should XRP break above **$2.66**, it could target the significant level of **$3.00**.

### FAQs on Bitcoin and Altcoins

- **Bitcoin** is the largest cryptocurrency, functioning as a decentralized form of currency.
- **Altcoins** refer to any cryptocurrency other than Bitcoin, with Ethereum often considered a leading alternative.
- **Stablecoins** are designed to maintain a stable value, usually pegged to fiat currencies like the USD.
- **Bitcoin dominance** indicates Bitcoin's market share relative to other cryptocurrencies, often increasing during bull runs.

*The information presented here is for informational purposes only and does not constitute investment advice.*

Bitcoin (BTC) price edges slightly down during the Asian session on Wednesday. 

Bitcoin's Record Highs Hit a Speed Bump: What the Fed's Rate Decision Means for Crypto

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