## A New Hope for Cryptocurrency

The **crypto industry** is buzzing with optimism as it anticipates a **golden era** under the leadership of President-elect Donald Trump. Many within the sector are looking forward to **lighter regulations** and broader **adoption** of cryptocurrencies, which they believe could spur innovation and investment.

### Regulatory Expectations

One of the primary hopes is that Trump’s administration will adopt a more favorable **regulatory stance** towards cryptocurrency. This could potentially lead to **increased legitimacy** for digital currencies, making them more appealing to both investors and the general public.

### Systemic Risks on the Horizon

However, not everyone shares this optimistic outlook. There are concerns regarding **systemic risks** that could arise from a less regulated environment. Critics warn that without adequate oversight, the industry may face challenges that could undermine its growth and stability.

### The Future of Crypto

As the crypto community awaits Trump’s policies, the industry remains divided between those who see **great potential** and those who caution against the **risks** that could come with rapid changes in regulation. The outcome of this political shift could define the future landscape of cryptocurrency for years to come.

The sector expects lighter regulation and wider adoption under the president-elect, but some worry about systemic risks

Will Trump's Presidency Ignite a New Era for Cryptocurrency?

Both **MicroStrategy** and **KULR Technology** are making headlines for their significant investments in **Bitcoin**. MicroStrategy, which began its Bitcoin acquisition in 2020, has amassed **279,420 Bitcoins** valued at **$26.2 billion**, representing **35%** of its enterprise value. In contrast, KULR Technology, known for its thermal management solutions, plans to allocate **90%** of its surplus cash to Bitcoin, with its first purchase of **217.18 Bitcoins** worth **$20.4 million**.

![Bitcoin hovering over a screen](https://g.foolcdn.com/image/?url=https%3A%2F%2Fg.foolcdn.com%2Feditorial%2Fimages%2F802572%2Fa-bitcoin-on-a-screen.jpg&amp;op=resize&amp;w=700)

### MicroStrategy: An All-In Bet on Bitcoin
MicroStrategy was once a slow-growth software developer but pivoted dramatically to Bitcoin investment. It has spent about **$11.9 billion** on its Bitcoin holdings, which now trade significantly higher than the purchase price. However, its core software business is struggling, with a **1% revenue dip in 2023** and expectations of a **5% drop in 2024**. The company has also increased its share count by over **120%** to fund its Bitcoin strategy, which raises concerns about its long-term viability if Bitcoin's price declines.

### KULR’s Bright Future
KULR, on the other hand, has a core business that shows promising growth potential. Its revenue soared **146%** to **$9.8 million** in 2023, and analysts predict a **77% revenue jump to $18.1 million** in 2025 due to new government contracts. KULR's thermal management technologies are already in use by major companies, including **NASA**, **Tesla**, and **Boeing**.

### The Better Buy: KULR
While neither stock is particularly cheap, KULR's core business growth and diversification make it a more attractive investment compared to MicroStrategy's heavy reliance on Bitcoin. Currently, MicroStrategy trades at **120 times sales**, while KULR trades at **59 times sales**. If choosing between the two, KULR appears to be the smarter investment, especially given the volatility associated with Bitcoin.


Which of these Bitcoin-driven companies is a better investment right now?

MicroStrategy vs. KULR Technology: Which Bitcoin Investment Is Smarter Right Now?

### Bitcoin's New Year Highs
Bitcoin (BTC) kicked off 2025 on a high note, having **touched the six-figure mark** in 2024. Many analysts are predicting that **2025 could be equally impressive**, with some projections suggesting BTC could reach **$185,000** or higher. 

### The Cautionary Candlestick Pattern
However, recent price movements indicate that sellers may be trying to regain control, hinting at a possible **price drop ahead**. December saw Bitcoin peak above **$108,000**, but it ended the month **below $94,000**, marking its **first monthly loss since August**. This price action has created a **bearish reversal pattern** known as the **"shooting star"** on the monthly chart. 

The shooting star is characterized by a long upper wick, indicating that buyers initially pushed prices up, but sellers took over near the highs, pulling prices back down. The upper wick in Bitcoin's case is nearly four times larger than the candle's body, suggesting a **renewed bearish sentiment** in the market.

![BTC's monthly chart. (TradingView/CoinDesk)](https://www.coindesk.com/_next/image?url=https%3A%2F%2Fcdn.sanity.io%2Fimages%2Fs3y3vcno%2Fproduction%2F1fe18c625c19fa833671233184e0646b86a16502-2390x1036.png%3Fauto%3Dformat&amp;w=3840&amp;q=75&amp;dpl=dpl_EY98mg2CffmP7TFmnb8io9BMwWsv)

### Key Levels to Watch
The shooting star has emerged after a significant uptrend from **$70,000 to over $100,000**, signaling potential bearish reversals if prices drop below **$91,186**—a crucial level for bulls to defend. Historically, similar patterns have indicated **bull market tops**.

### Short-Term Challenges Ahead
This cautious outlook aligns with broader macroeconomic factors, particularly **hawkish signals from the Fed**, rising Treasury yields, and a **strengthening dollar index**. Despite this, some analysts remain optimistic, predicting that the Fed may pivot to a more dovish stance in Q1 2025, which could support a **bullish trajectory for BTC** and other risk assets.

Trader and analyst **Alex Kruger** expressed confidence that February will be a strong month for Bitcoin, anticipating that the Fed will eventually signal more rate cuts, restoring bullish sentiment in the market.

The candlestick pattern shows sellers are looking to reassert themselves as hawkish Fed rate projections drive the DXY higher.

Is Bitcoin's 'Shooting Star' Signaling a Price Drop? Insights from the Market

### BlackRock’s Bitcoin ETF Records Its Largest Outflow

BlackRock's IBIT started the new year on a rough note, losing millions in net outflows on Thursday.

![BlackRock](https://cdn.sanity.io/images/s3y3vcno/production/88712848853d249cbc03fda73bba8e72c7da76d6-1500x914.jpg?auto=format)

**What to know:**  
- Data shows that BlackRock’s IBIT, which holds over **$53 billion** in net assets, saw over **$332 million** leave the fund.  
- Thursday's tally exceeds the short-held previous record outflow of **$188 million** in late December.

The largest public fund tracking Bitcoin (BTC) recorded its highest outflows on Thursday, nearly one year after going live. BlackRock’s Nasdaq-listed IBIT, which holds over **$53 billion** in net assets, saw over **$332 million** leave the fund on Thursday, according to data source [SoSoValue](https://208.87.240.203/assets/etf/us-btc-spot?__cpo=aHR0cHM6Ly9zb3NvdmFsdWUuY29t). These exceed a short-held previous record of **$188 million** in late December.

IBIT has recorded a string of outflows since **December 20** for the first time in its history, with figures ranging from **$17 million** to as much as Thursday’s numbers.

![SoSoValue](https://cdn.sanity.io/images/s3y3vcno/production/3be94bf9a3546201bf149cb047980728c52aabb5-1763x575.png?auto=format)

Large outflows can signal a lack of confidence in the ETF's strategy, sector, or broader market segment. However, it could also be due to investors rebalancing their portfolios or taking profits, which is not necessarily a negative outlook on the ETF.

Other ETFs recorded inflows, with Bitwise’s BITB taking on **$48 million** and Fidelity’s FBTC taking in **$36 million**. Grayscale’s GBTC was the only other ETF with outflows at **$23 million**.

Bitcoin trades just under **$97,000** at writing time, up **1.5%** in the past 24 hours.

BlackRock's IBIT started the new year on a rough note, losing millions in net outflows on Thursday.

BlackRock's Bitcoin ETF Faces Major Setback with $332 Million Outflow

## **Bitcoin Price Shows Signs of Recovery**
Bitcoin's price has recently bounced off the key support level of **$92,606**, indicating a potential recovery. Currently trading around **$97,000**, if this support holds, BTC might aim for the **$100,000** mark, with a successful close above it potentially leading to a rally towards its all-time high of **$108,353**.

![BTC/USDT daily chart](https://editorial.fxsstatic.com/miscelaneous/BTCUSDT_2025-01-03_07-42-32-638714741786993576.png)
*BTC/USDT daily chart*

## **Ethereum Approaches Key Resistance**
Ethereum is currently consolidating between **$3,245** and **$3,522**. Trading at **$3,461**, a breakthrough above **$3,522** could signal an extension towards the **$4,000** psychological level. However, if it falls below **$3,245**, it may retest the next support level at **$3,000**.

![ETH/USDT daily chart](https://editorial.fxsstatic.com/miscelaneous/ETHUSDT_2025-01-03_08-35-36-638714742213492661.png)
*ETH/USDT daily chart*

## **Ripple's Potential for Upward Momentum**
Ripple is currently trading at **$2.45** and is poised within a symmetrical triangle formation. A breakout above the **$2.56** level could target **$3.63**. The RSI at **61** suggests bullish momentum, while the MACD indicates an upward trend.

![XRP/USDT daily chart](https://editorial.fxsstatic.com/miscelaneous/XRPUSDT_2025-01-03_09-08-48-638714742679082371.png)
*XRP/USDT daily chart*

Bitcoin’s (BTC) price finds support around its key level, while Ethereum’s (ETH) price is approaching its key resistance level; a firm close above it would signal a bullish trend. 

Bitcoin, Ethereum, and Ripple: Are We on the Cusp of a Major Rally?

### **SEC vs. Ripple Appeal on the Horizon**  
If the **SEC** files the opening brief, it would leave Trump’s nominated SEC Chair **Paul Atkins** to influence the SEC’s stance on the appeal. **SEC Chair Gensler** steps down on **January 20**, coinciding with Trump’s inauguration.  
Amicus Curiae **John E. Deaton** reacted to Chair Gensler’s imminent departure, stating that 19 days was too long. Gensler could continue pursuing US crypto firms during his remaining days in office. Ripple experienced a similar fate in 2020 when the SEC filed its lawsuit just before Chair **Jay Clayton** stepped down.  
However, there is a significant difference in 2025. The incoming SEC Chair is **crypto-friendly** and likely to end the SEC’s era of regulation through enforcement.  
**Markets are optimistic** that the revamped SEC might align with Trump’s pro-crypto agenda, potentially concluding the Ripple case and other ongoing actions, such as those involving **Coinbase** (COIN).  
### **Ripple's Wishlist for Clarity**  
On **December 31**, Ripple Chief Legal Officer **Stuart Alderoty** shared a wishlist for the US digital asset space, calling for clear regulatory principles, including:  
- The SEC only has jurisdiction over **security transactions**.  
- A token is never a security, although it can be the subject of a security transaction.  
- The SEC’s reach doesn’t expand based on a self-serving view of who it thinks is more ‘deserving’ of disclosures.  
- The notion that a token can ‘evolve’ from a security to a non-security is a made-up fallacy with no footing in the law.  
### **Conflicts of Interest in Gensler’s SEC**  
Crypto-related conflicts of interest have marred **Gary Gensler’s** tenure as SEC Chair. Deaton summed up the impact of the SEC vs. Ripple case on Ripple’s business, saying,  
> “I do not believe one can properly estimate the damage to Ripple’s business caused by the sweeping nature of the SEC’s complaint against Ripple and XRP.”  
Deaton also underscored the crypto-related conflicts of interest that led to an Office of Inspector General investigation.  
> “After 7 years of being publicly traded, this time four years ago, Jay Clayton, Bill Hinman, Mark Berger, and others at the SEC – as they were walking out the SEC’s door – filed the most significant non-fraud SEC enforcement action in modern history, claiming ALL XRP, regardless of how you acquired them, constituted unregistered securities.”  
### **XRP Price Trends**  
On **January 2**, XRP advanced by **3.03%**, following Wednesday’s **11.89%** surge to close at **$2.4004**. XRP continued outperforming the broader market, which gained **2.42%**.  
Rising bets on the SEC withdrawing its Ripple appeal could support a return to **$3**. An actual withdrawal might send XRP through its **2018 all-time high** of **$3.5505**.  
### **Bitcoin and Speculation on US Strategic Reserves**  
Meanwhile, **bitcoin (BTC)** also trended higher on January 2. Speculation intensified about BTC becoming a **US strategic reserve asset (SBR)**, boosting buyer demand.  
**Anthony Scaramucci** suggested that the US government could soon buy **500,000 BTC**.  
> “They’ll probably buy another four or five hundred thousand BTC. Let me tell you why I think it will happen.”  
Scaramucci also referred to the **SAB 21 bill**, suggesting that the bipartisan vote for SAB 21 indicates that the majority of Democrats would favor a strategic BTC reserve.  
### **Bitcoin Price Outlook**  
On **January 2**, BTC rose **2.60%**, closing at **$96,823**.  
Near-term BTC price trends depend on US-BTC-spot ETF market flows and US SBR developments. USG support for an SBR and BTC-spot ETF market inflows could drive BTC toward its record high of **$108,231**.

SEC vs. Ripple Appeal Looms: XRP gains 3% as optimism builds for pro-crypto SEC leadership in 2025. Could XRP rally past $3? Discover more.

XRP and Bitcoin Surge Amid SEC Changes: What You Need to Know!

As **Bitcoin** (CRYPTO: BTC) trades near **$95,000**, insights from **Peter Thiel**, co-founder of **PayPal**, regarding market bubbles are garnering attention. Thiel's framework draws parallels between historical market manias and the current state of **cryptocurrency** markets.

### What Happened
In a recent talk at the **Yale Political Union**, Thiel outlined three critical indicators of market bubbles:
- **Extreme abstraction**
- **Unsustainable exponential growth**
- **Psychosocial mania**

These indicators resonate strongly as the cryptocurrency market approaches new heights in early 2025. 

Thiel emphasized, “**Bubbles are extremely hard to define**; they involve incredible abstractions.” He likened this to the dynamics seen in the current cryptocurrency markets, which have been compared to historical events like the **tulip bubble** of the 17th century.

### Why It Matters
Thiel's second indicator, concerning **exponential growth patterns**, is particularly relevant as **Bitcoin’s** market capitalization nears record levels, reflecting a **47.73%** increase in late 2024. He stated, “Things that are exponential are powerful but unsustainable.”

His third indicator, **psychosocial mania**, aligns well with the excitement surrounding cryptocurrencies today, suggesting that there is a psychological component driving investments in these assets.

Despite these cautionary signs, Thiel's **Founders Fund** reportedly invested **$200 million** in **Bitcoin** and **Ethereum** in late 2023. However, he expressed skepticism about Bitcoin’s future growth potential in a **CNBC** interview, stating, “I’m not sure it’s going to go up that dramatically from here.”

Thiel's observations come at a time when **PayPal** is expanding its cryptocurrency services, further bridging traditional finance with the world of digital assets, marking a significant evolution for Bitcoin from its early days as a tool for **cypherpunks** to a mainstream financial asset.

As Bitcoin (CRYPTO: BTC) trades near $95,000, PayPal Holdings Inc. co-founder Peter Thiel‘s framework for identifying market bubbles offers crypto investors a timely analytical tool, drawing parallels between historical manias and current market ...

Peter Thiel's Insights on Bitcoin's Bubble: Are We in a Crypto Mania?

### Morgan Stanley’s E*TRADE Considers Cryptocurrency Trading

Multinational investment bank **Morgan Stanley** is reportedly exploring the launch of **cryptocurrency trading services** through its E*TRADE platform. This comes amid expectations of a more favorable **regulatory environment** under the incoming administration, which is believed to support the cryptocurrency market.

![Morgan Stanley](https://d15shllkswkct0.cloudfront.net/wp-content/blogs.dir/1/files/2015/06/headapril-96x96.jpg)

The news, first reported by **The Information**, indicates that these plans are still in the **exploratory phase**. Morgan Stanley had acquired E*TRADE for **$13 billion** in 2020. Currently, E*TRADE offers indirect exposure to cryptocurrencies via investment products like **futures**, **exchange-traded funds**, and stocks related to digital assets, including the **Grayscale Bitcoin Trust** and the **ProShares Bitcoin Strategy ETF**.

If E*TRADE moves forward with direct cryptocurrency trading, it would become one of the largest traditional financial institutions to enter the **digital asset trading** space. This is not the first time E*TRADE has considered this move; before its acquisition, it had looked into offering cryptocurrency trading in **2018**, but regulatory challenges halted those plans.

The renewed interest in cryptocurrency trading aligns with a potential **pro-crypto stance** from the incoming administration, suggesting that the U.S. aims to lead in the cryptocurrency market. Furthermore, E*TRADE's entrance into direct cryptocurrency trading could reflect a strategic response to increasing investor demand for digital assets. This move would also enhance Morgan Stanley's competitive edge against traditional firms that have yet to offer cryptocurrency services.

Entering the cryptocurrency market could pose significant competition to existing players like **Coinbase Global Inc.** and **Robinhood Markets Inc.**, particularly given Morgan Stanley's substantial market presence, valued at **$201 billion**.

### Image: SiliconANGLE/Ideogram

Morgan Stanley's E*TRADE reportedly considering cryptocurrency trading amid regulatory shift - SiliconANGLE

Will Trump's Presidency Ignite a New Era for Cryptocurrency?

Summary:

A New Hope for Cryptocurrency

Regulatory Expectations

Systemic Risks on the Horizon

The Future of Crypto

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MicroStrategy vs. KULR Technology: Which Bitcoin Investment Is Smarter Right Now?

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Bitcoin, Ethereum, and Ripple: Are We on the Cusp of a Major Rally?

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Morgan Stanley's ETRADE Eyes Cryptocurrency Trading: A Game Changer in the Financial Sector?