The Blockchain Bulletin, Dec 16: Bitcoin Hits a New ATH at $106K

Hey folks, Welcome back! Bitcoin has reached $106,000 – a world record for cryptocurrencies and a brand new signal of optimism within the crypto market. Experts and economists are estimating further growth of Bitcoin’s price, some of which regarding to $120,000. 

This forecast is based on past experiences after halving events and an increase in adoption levels.  With the Fear and Greed Index at 80, a lot of people now want to invest in Bitcoin because they consider it a way to guard their wealth against economic risk. However, market critics argue that the high volatility of the market is likely to result in major adjustments toward a bearish fall.

In the political aspect, Bitcoin is slowly carving its niche as a potential asset. President-elect Donald Trump has encouraged the development of a Bitcoin Reserve fund for the nation. He further stated that the asset would protect against traditional finance risks. While such proposals are still expected to be hypothetical, these indicate that there is a much-appreciated recognition of Bitcoins’ value. Further, Trump’s endorsement could encourage other leaders to start employing cryptocurrencies in national finance systems.

With Trump at the helm of integrating crypto as a commodity, the actions of the SEC have come under scrutiny among the crypto community. The founder of XRP, Brad Garlinghouse, has stepped up his attacks on the U.S. Securities and Exchange Commission to support Elon Musk. Reposting Musk’s X post, Garlingouse criticized the regulatory body for taking an enforcement-focused approach, hindering growth. 

This follows the letter that Musk received from the SEC. Taking to his X profile, the Tesla CEO said, 

The SEC is just another weaponized institution doing political dirty work.

Further, the Ripple founder stressed that clear regulatory rules must be imposed to avoid such obstacles in the industry. He added that a radical change can be expected in Trump’s administration, with a change in the SEC Chair.

Recently, Amazon was offered a proposal to accept Bitcoin as a payment method. This comes at a time when Bitcoin adoption is being speculated by major corporations. Although Bitcoin has received a strong response from investors, the corporates are hesitant to accept the crypto. Earlier, another major tech giant, Microsoft, rejected the Bitcoin proposal, citing volatility risks. Speculations are rife that Amazon might reject Bitcoin like Microsoft. But, if accepted, about 1%-5% of its assets in Bitcoin can be used as a hedge against inflation. 

Despite a 3-minute presentation by Michael Saylor, the founder of MicroStrategy, the delegates of Microsoft declined the offer. MicroStrategy is the largest corporate Bitcoin holder, purchasing Bitcoin at every given opportunity. Earlier this month, Saylor purchased about 21,550 Bitcoins worth $2.1 billion. Overall, Saylor’s Bitcoin amounts to 423,650 Bitcoins worth about $25.6 billion, with each Bitcoin at $60,324.

All the recent developments over the past week are expressing the increased adoption of Bitcoin and cryptocurrency in the market. The digital assets, which no one ever saw, have now evolved into a separate realm for everyone to secure their future in the decentralized world.

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