• Why Is Bitcoin Going Crashing?

• Pro-Bitcoin PM Odds On For Canada

• Czech National Bank Explores BTC Reserve

• This Will Send Bitcoin To The Moon

• And more…

Market Data Prices as of 5:30am ET

This Update Is Brought To You By Bitbo

We are excited to announce Bitbo’s newest trading chart:

S&P 500 Price in Bitcoin →

This chart shows the price of the S&P 500 index in bitcoin (BTC).

WHY IS BITCOIN CRASHING?

BREAKING: Bitcoin Drops Below $95K After Positive U.S. Economic Reports Trigger $300M in Crypto Liquidations

That didn’t last long…

After Bitcoin broke past $100,000 this week, it quickly plummeted to $93,000.

So, what triggered this unexpected crash?

The culprit seems to be the release of strong U.S. economic data.

The Bureau of Labor Statistics reported that job openings for November surged to 8.1 million, an improvement from the prior month’s 7.8 million, and far surpassing analysts' expectations of a decrease to 7.7 million.

(More job openings typically suggest a robust economy with increased demand for labor.)

Everything seems to be heading downward

Alongside that, the ISM Services Purchasing Managers Index was released.

This index, which measures economic activity, came in at 54.1, exceeding expectations of 53.3 and improving from November’s 52.1, suggesting the economy is doing well.

So why did cryptocurrencies and stocks drop despite this positive news?

Here’s why…

The strong economic data has analysts rethinking their predictions for rate cuts in 2025.

To clarify: Lower interest rates tend to make traditional investments like bonds less attractive, which drives investors toward higher-risk assets like Bitcoin.

Lower rates also mean more liquidity, which typically leads to more investments in cryptocurrencies.

As per the CME Fedwatch Tool, there’s only a 4.8% chance of a rate cut in January.

The chance of a rate cut in March has dropped to 37%, from around 50% last week.

Looking even further, the chance of a rate cut in May is now below 50%.

But…

President Donald Trump, who will soon take office, stated that "interest rates are far too high."

It’s important to remember, though, that while Trump can affect the discussion, the Federal Reserve makes the final decision on interest rates, and the Fed operates independently from the government.

Markets are now in a tricky spot, wondering whether the Fed will decide to cut or hold rates during their January 29th meeting.

The market hates uncertainty.

We are excited to introduce the Bybit Card to you!

⭐ Get 10 EUR card bonus upon sign
⭐ Refer a friend and grab up to 30 USDT
⭐ Get 2% Auto-Cashback in USDT

There is no annual or monthly fees, you get instant virtual card, up to 8% APY and it's compatible with Google Pay!

Apply Now

Order a Bybit Card in just 5 minutes!

1️⃣ Sign up for a Bybit Account here

2️⃣ Complete your application

3️⃣ Receive your virtual card immediately

You get to earn rewards point as you spend too!

Rewards Point can be converted to USDT or redeemed exclusive merchandise

PRO BITCOIN PM ODD ON FOR CANADA

Pierre Poilievre, the leader of Canada’s Conservative Party, is currently the frontrunner to replace Justin Trudeau as the country's next prime minister, according to the latest Polymarket odds.

With a remarkable 89% chance of winning, Poilievre has captured the attention of Polymarket users, who have placed around $500,000 in bets on the outcome of Canada’s upcoming election.

Of this, approximately $290,000 is specifically supporting Poilievre’s candidacy.

Poilievre is widely recognized for his pro-Bitcoin views and advocacy for Bitcoin investments in Canada.

He has also disclosed personal holdings in Canada’s Purpose Bitcoin ETF.

The Conservative Party candidate, has been outspoken in his pro-Bitcoin stance and personal support for cryptocurrency as a hedge against inflation.

In May 2024, he disclosed personal holdings in Purpose Bitcoin ETF, a Canadian-based fund that holds cryptocurrencies, to the federal ethics commissioner.

Poilievre has championed Bitcoin as part of his broader economic platform, proposing that the Bank of Canada should not develop a digital currency and advocating for Canadians' right to use alternative currencies freely.

Poilievre’s campaign has highlighted his belief in a decentralized economy, demonstrated by events where he used Bitcoin for transactions, including buying a shawarma and making a Bitcoin donation to the BC SPCA.

His campaign has also defended his financial interests, stating that Poilievre consulted the Office of the Conflict of Interest and Ethics Commissioner before commenting on Bitcoin policies, ensuring transparency and compliance.

Despite these disclosures, Poilievre remains the favorite to replace Justin Trudeau.

MindLabPro: The world's most advanced nootropic formula.

Designed to boost your everyday brainpower. For enhanced cognitive function and peak daily performance.

• 11 premium-grade research-backed nootropic nutrients.

• 100% plant-based & stim-free. In prebiotic vegan capsules.

• For focus, clarity, memory, mood, motivation & more.

CZECH NATIONAL BANK EXPLORES
BTC RESERVE

The Czech National Bank is considering the potential of Bitcoin as an option to diversify its foreign exchange reserves.

Governor Aleš Michl referred to the idea as a small-scale diversification effort, clarifying that there are no immediate intentions to make large-scale investments.

For Bitcoin to be added to the bank's reserves, approval from the seven-member board would be necessary.

Governor Michl also mentioned that Bitcoin represents an interesting prospect for diversifying the bank’s reserves.

Czech Republic Pushes for Pro-Crypto Reforms

The Czech government is pushing forward with new proposals to improve Bitcoin taxation policies in hopes of promoting long-term investments in digital currencies.

The proposal includes capital gains tax exemptions for Bitcoin and other cryptocurrencies held for more than three years.

Additionally, transactions of under $4,200 annually would be excluded from reporting requirements.

Recently, Czech lawmakers voted to eliminate the capital gains tax on Bitcoin, with unanimous support from all members of parliament.

Global Interest in Bitcoin Reserves Grows

Interest in Bitcoin as a reserve asset is rising worldwide, with countries like the United States, Japan, Switzerland, and Russia exploring similar moves.

In the US, the Bitcoin Act proposed by Senator Cynthia Lummis advocates for the establishment of a national Bitcoin reserve.

Switzerland is considering legislation to include Bitcoin in its reserves alongside gold, with a petition deadline for citizens set for June 30, 2025.

In Russia, new laws have been introduced that allow Bitcoin and other cryptocurrencies for cross-border payments, following restrictions on international trade.

Bitcoin is the ultimate asset for your retirement. Create a tax shelter for exponential returns! Speak to one of the specialists at Swan Bitcoin today.

Swan has built incredible tools to allow you to measure the impact that Bitcoin could have on your portfolio.

Book A Swan IRA Consultation - 15 min

Check out the Swan retirement calculator and plug in your details to measure the potential of Bitcoin in your retirement account.

THIS WILL SEND BITCOIN TO THE MOON

Tom Lee's latest Bitcoin market outlook highlights his positive view on Bitcoin and digital assets, especially in the context of U.S. politics under President Trump.

Lee emphasizes that the Trump administration is likely to pursue a pro-digital asset agenda, which he sees as highly favorable for Bitcoin.

He points out that Trump’s advisors, many of whom are Bitcoin holders, may push for Bitcoin to become a reserve asset.

This, along with a potential "White House put" alongside the Fed’s usual support for the market, could make the next four years favorable for Bitcoin and the stock market in general.

Watch this video to see more highlights from Tom Lee’s latest interview:

Heatbit Trio is the world’s only heater-purifier that mines Bitcoin at 10 TH/s and makes you ≈30,000 SATS / mo

Get 5% Off with Coupon Code »CLOUDAICRYPTO»

OTHER NEWS

• Elon Musk and Michael Saylor Show Support for Pro-Bitcoin Pierre Poilievre in Canadian Election Campaign.

• JPMorgan Reports Surge in Institutional Bitcoin Interest, Highlighting Increased Demand for Safe-Haven Assets and Record ETF and Futures Inflows in 2024.

• MARA Bitcoin Mining Company Generates $3.9M in Interest Income from Lending 7,377 BTC and Hits 47 EH/s Realized Hashrate in December.

• JPMorgan: Bitcoin Mining Sees Profitability Growth in December, Marking the Second Consecutive Month of Rising Daily Revenue Amid Slowing Hashrate.

• Bitwise Research Head Cautions that Bitcoin’s Re-Established Correlation with S&P 500 Could Pose Risks, Despite Trump-Inspired Market Surge and Exchange Outflows.

• Telegram Hands Over 2,000 User Details to US Authorities in 2024 After Policy Shift Post CEO Pavel Durov's Arrest.

• CryptoQuant CEO Ki Young Ju Predicts Bitcoin Will Enter the Longest Bull Market in History, Driven by Continued Liquidity and Dollar Influences.

• Satoshi Action Fund Chairman Dennis Porter Reveals Plans to Introduce Strategic Bitcoin Reserve Legislation Across 14 US States, with Processes Set to Begin This Month.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.