Will BTC become a U.S. reserve asset? BTC market dominance rises to 57%

Golden Weekly is a weekly summary column of the blockchain industry launched by Golden Finance, covering the key news of the week, mining information, project dynamics, technological progress and other industry dynamics. This article is the news weekly, which takes you to a glance at the major events of the blockchain industry this week.

Headline

▌Economic Daily published an article: Will Bitcoin become a reserve asset of the United States?

Economic Daily published an article entitled "Will Bitcoin become a reserve asset of the United States?".  

The article stated that although the new US government that is about to take office has shown great interest in cryptocurrencies, it still needs to pass multiple "gates" to make Bitcoin a real reserve asset of the United States. From a policy perspective, listing Bitcoin as a strategic reserve asset requires a complex legislative process, involving the coordination and interest balance of multiple regulatory agencies. In addition, traditional US financial institutions, conservative lawmakers and interest groups that are skeptical of digital assets may collectively oppose it, and the implementation is not easy. The surge in Bitcoin prices seems to have given some people hope of reproducing the process from the disintegration of the Bretton Woods system to the establishment of the petrodollar. However, Bitcoin's own attributes are not stable. Once it becomes a strategic reserve asset, it may bring greater challenges to regulators, and may also arouse the vigilance of other countries in the world and intensify frictions in the international financial field. It is still unknown whether the US economy, which has been eroded by high inflation for many days, can withstand its impact.

▌Bitcoin market dominance rises to 57%

According to data from The Block, Bitcoin's market share has reached a high of 57% so far this year, reflecting Bitcoin's growing share of the total market value of cryptocurrencies.  

Analysts at The Block said that in the last cycle, Bitcoin's dominance once fell to 39%, which echoed the DeFi craze and the subsequent rally in altcoins. The current 57% dominance, coupled with Bitcoin's price strength, may indicate that the market is at the beginning of this cycle and BTC is entering the price discovery stage.

▌Trump and Musk watched the sixth test flight of SpaceX Starship in Texas

The sixth test flight of SpaceX Starship ignited and launched, and Trump and Musk watched it in Texas.  

SpaceX said that Starship successfully ignited one of its Raptor engines for the first time in space. The sixth flight test of Starship has been going on for about 30 minutes, and all systems still appear to be normal.

▌Japan promotes economic stimulus plan and plans to reach a 20% unified tax rate on cryptocurrencies

The Japanese government announced the promotion of a new economic stimulus plan, which is expected to be approved by the end of 2024. The plan includes changing the tax rate on cryptocurrencies from the current "miscellaneous tax" of up to 55% to a unified tax rate of 20%. In addition, the reform proposal also involves increasing the personal exemption to about $11,345, cutting fuel taxes and sales taxes to boost the economy and improve the job market. Japanese Prime Minister Shigeru Ishiba promised to work with all parties to promote the legislation.

▌Trump team considers setting up the first cryptocurrency-related position in the White House

According to people familiar with the matter, the Trump team is discussing with the digital asset industry whether to set up a new position in the White House specifically responsible for cryptocurrency policy. Trump's team is reviewing candidates for this role. If this new position is really established, it will be the first position in the White House dedicated to cryptocurrency in history. Discussions about the position include leading a small team and serving as a liaison between Congress, the White House and various agencies with jurisdiction over cryptocurrencies, including the U.S. Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission (CFTC). According to people familiar with the matter, former Coinbase and Binance US executive Brian Brooks met with Trump on Tuesday and is also a potential candidate for chairman of the U.S. Securities and Exchange Commission. Coinbase CEO Brian Armstrong also spoke with Trump this week.

Policy

▌The U.S. SEC has postponed its decision on the Franklin Crypto Index ETF EZPZ

According to a document released on Wednesday, the U.S. SEC has postponed its decision on the Franklin Crypto Index ETF EZPZ.  

Franklin Templeton submitted a registration statement to the agency in August for the Franklin Crypto Index ETF, which will hold both Ethereum and Bitcoin. If approved, the proposed Franklin Crypto Index ETF would be listed on the Cboe BZX exchange and use Coinbase Custody Trust Company LLC as its digital asset custodian.  

The Commission believes that a longer period should be specified to act on the proposed rule changes so that there is sufficient time to consider the proposed rule changes and the issues raised therein," the SEC said in the filing.

▌The U.S. SEC begins returning more than $4.6 million to BitClave ICO victims

According to an official announcement, the U.S. SEC will issue more than $4.6 million to investors who were harmed by BitClave, PTE Ltd.'s unregistered digital asset securities ICO. After the notification and claims process, investors will now receive BitClave's corresponding share, and checks have begun to be mailed out.  

The payment is part of the settlement that BitClave agreed to pay in 2020 after the SEC accused the search engine of failing to register its 2017 ICO as a securities offering. In 2020, BitClave agreed to compensate approximately 9,500 investors who purchased its $25.5 million ICO three years ago. BitClave did not admit to wrongdoing, but promised to return the $25.5 million raised from the ICO and pay an additional fine of approximately $4 million.

▌Cboe submits 4 Solana spot ETF listing applications to the US SEC

James Seyffart, senior ETF analyst at Bloomberg, posted on social media that "Cboe has just submitted applications to the US SEC for 4 Solana spot ETFs, with issuers VanEck, 21Shares, Canary Capital and Bitwise. If the SEC does not reject the above-mentioned application, the final deadline will be around early August next year."

▌Informed sources: Former SEC Commissioner Paul Atkins is expected to succeed Gary Gensler as chairman

According to people familiar with the matter, former US Securities and Exchange Commission (SEC) Commissioner Paul Atkins is currently seen as a hot candidate to succeed Gary Gensler as SEC chairman. Dan Gallagher, the previous popular candidate and general counsel of Robinhood, has basically withdrawn from the competition. Atkins is widely supported by the business and cryptocurrency industries for his free market-oriented regulatory style and pro-cryptocurrency stance. At the same time, Gensler's decision not to renew his term as chairman of the SEC has also won praise from the business community. The news pointed out that the candidate has not yet been finalized and may still change.

▌Companies including Circle and Ripple are vying for seats on the crypto committee promised by Trump

According to Reuters, a series of cryptocurrency companies including Circle, Ripple, Kraken, Coinbase, a16z, and Paradigm are vying for seats on the cryptocurrency advisory committee promised by President-elect Donald Trump, seeking to have a say in his planned U.S. policy reforms.  

Trump promised to set up a new committee as part of a cryptocurrency-friendly government during his campaign at the Bitcoin conference in Nashville in July. People familiar with the matter said his transition team is discussing how to organize and arrange personnel and which companies should be included.

▌The US court postponed the verdict on Trump's "hush money" case

On November 19, local time, the verdict of the "hush money" case involving US President-elect Trump, which was originally scheduled for November 26, was canceled. It is reported that the court updated the verdict status in the court records on the same day, but did not explain it. At the same time, Alvin Bragg, the US District Attorney in Manhattan, faced a deadline and needed to provide the court with advice on how the case should proceed. (CCTV News)

▌The Trump team listed crypto lawyer Teresa Goody Guillen as a candidate for SEC chairman

According to sources, the Trump team is considering listing Teresa Goody Guillen, a partner at the law firm Baker Hostetler and co-head of its blockchain team, as one of several candidates for the next SEC chairman. Goody Guillen is an experienced securities lawyer with experience serving the SEC and representing blockchain companies and traditional businesses against the agency.  

Sources say Trump is looking for a non-bureaucrat who supports cryptocurrency to overhaul the U.S. Securities and Exchange Commission (SEC). Washington insiders say that unlike Trump's first administration, the election process for the second term was quick and orderly, and the SEC chairman is expected to be selected before Thanksgiving.

▌Trump nominates cryptocurrency supporter Howard Lutnick as Secretary of Commerce

According to the Wall Street Journal, Trump said on the 19th local time that he would nominate veteran Wall Street financier Howard Lutnick as Secretary of Commerce for the next U.S. government, promoting one of his most outspoken supporters in the financial community to a key position. In addition, Lutnick will directly lead the Office of the U.S. Trade Representative. Lutnick, CEO of financial services company Cantor Fitzgerald, has become a close ally of Trump in recent months and has been the top contender for Treasury Secretary. If approved by the Senate, Lutnick will be responsible for expanding U.S. economic growth and promoting domestic industries. He may also help maintain and expand the relationship between the government and the business community. The Department of Commerce and other agencies will play a central role in implementing the president-elect's proposal to impose tariffs on U.S. imports. Lutnick is a cryptocurrency supporter whose firm Cantor Fitzgerald has managed Tether's U.S. Treasury portfolio since 2021.

Blockchain Applications

▌Magic Eden Announces ME Token Economics: Total Supply of 1 Billion, More Than Half Will Be Allocated to the Community

Magic Eden announced the token economics of its official token ME, with a total supply of 1 billion. Token distribution will be issued over 4 years, more than half of which will be allocated to the community.  

Among them, TGE's initial ME claim: 12.5%; community and ecosystem: 37.7%; contributors: 26.2%; strategic participants: 23.6%.  

ME will be distributed within 4 years, when all ME will be fully circulated, most of which will be allocated to the community. To ensure that the community and protocol are protected from security issues, a 5-member Security Committee will be appointed to oversee a multi-signature wallet capable of performing emergency and delayed non-emergency actions. The ME Foundation will serve as the administrator of ME.

▌Crypto Wallet Phantom Ranks Above WhatsApp and Instagram in iOS Top Free Apps

Crypto wallet platform Phantom hit a record high ranking on the iOS App Store on Wednesday.  

Phantom ranked ninth among free iPhone apps, the first time Phantom has entered the top ten. It fell behind short video app TikTok, which ranked eighth, but surpassed messaging platform WhatsApp and social media giant Instagram, which ranked 13th and 14th among free apps, respectively.  

In addition, Phantom ranked second among free utility apps in the iOS App Store on Wednesday, second only to Google's search engine app.  

Phantom is a non-custodial digital asset wallet and browser extension that raised $109 million in a Series B round of funding. The wallet was originally based on Solana, but has since grown to support Ethereum, Bitcoin, Base, and Polygon.

▌Injective launches SDK called iAgent, which supports users to create on-chain AI agents

Layer 1 blockchain protocol Injective announced the launch of a software development kit (SDK) called iAgent, which supports users to create on-chain AI agents. It is reported that iAgent deploys OpenAI's ChatGPT and other large language models so that users can command AI agents to complete Injective-based tasks.

▌The Metaverse Industry is "Attractive" and Many Places are Competing for Layout

From the live broadcast room to the storm scene, immersive broadcasting takes you to experience it firsthand; the intelligent body "sees through fire", and logistics innovation is at your fingertips; the VR exhibition hall allows you to transcend reality and create a new trend of exhibitions... All of these are inseparable from a hot word "Metaverse". In recent years, the Metaverse has become a new hot spot in the digital economy. Some institutions predict that by 2030, the scale of China's Metaverse market is expected to reach 850 billion yuan. According to incomplete statistics, as of now, more than 150 Metaverse-related policy documents have been issued at the national and provincial levels. These policies not only provide strong policy guarantees for the development of the Metaverse industry, but also stimulate the enthusiasm of various places to actively layout the Metaverse industry. Beijing, Shandong Province, Henan Province and other places have successively issued relevant policies to promote the innovative development of the Metaverse industry. At the same time, various places have also built a number of Metaverse industrial parks and innovation platforms based on their own advantages and special resources.

Cryptocurrency

▌Benchmark analyst: BTC is expected to reach $225,000 by the end of 2026

Mark Palmer, a fintech analyst at Benchmark, said that BTC is expected to reach $225,000 by the end of 2026.  

In addition, analysts also said that MicroStrategy's "controversial" BTC strategy has attracted many critics, but its huge impact on the company's stock price has provided sufficient reasons, because over the past four years, its stock price has outperformed almost all major companies in the United States. Coin Center Lawyers Appeal Lawsuit, Saying Tornado Cash Is Not “Property” Coin Center is appealing a previous ruling by the U.S. District Court for Northern Florida that found that Tornado Cash created indirect benefits for foreign individuals and entities, which can be defined as financial interests subject to sanctions by the Office of Foreign Assets Control (OFAC).  

Coin Center legal counsel Jeffrey S. Hetzel told the 11th Circuit Court of Appeals: "The simplest way to resolve this case is to find that there was no foreign property in the plaintiff's transactions. The district court must remove the word property from the statute." "The government said on appeal that the software published on the banned address is property, but the software is non-proprietary code that cannot be owned, controlled or altered in any way by anyone on Earth," Hetzel said.

▌Stablecoin USDS has a circulation volume of more than $89 million in less than 24 hours after its launch on Solana

Less than a day after the launch of USDS issued by Sky (formerly known as MakerDAO), the circulation volume of USDS on Solana has exceeded $89 million, making it the fastest growing stablecoin on Solana.  

USDS lenders on Save, Drift, and Kamino are reportedly seeking returns of more than 20% due to the increased rewards offered by Sky. Sky also encourages traders to transfer funds to Solana through the token bridging service Wormhole, which further increases the circulating supply.

▌Charles Schwab President: Consider offering spot crypto trading once regulations change

Charles Schwab President Rick Wurster said in an interview with Bloomberg Radio on Thursday that the company will consider offering spot cryptocurrency trading once U.S. regulations allow it, which is more likely to happen after Donald Trump takes office as president.  

Rick Wurster said: "When the regulatory environment changes, we will enter the spot cryptocurrency field. We do expect it to change and we are preparing for this possibility." 

He also said: "Cryptocurrency has indeed attracted a lot of people's attention and they have made a lot of money from it. I have not bought cryptocurrency and now I feel stupid." Wurster added that he does not plan to invest in cryptocurrency for the time being, but he supports Charles Schwab clients who want to invest in the field.

▌Trump Media Technology Group may be considering launching a crypto payment service called Truth Fi

According to the New York Times, according to a trademark application filed this week, Trump Media Technology Group filed an application for a cryptocurrency payment service called Truth Fi, describing it as a platform for crypto payments, financial custody services and digital asset transactions. The application does not detail how the project will work or how close it is to fruition, but the move appears to be an attempt by the group to diversify its business beyond the social media platform Truth Social. Any large-scale crypto project would most likely require Trump Media Technology Group to acquire another company, as it has fewer than 36 employees. This week, shares of crypto trading platform Bakkt soared after the Financial Times reported that Trump Media was in talks to acquire the platform.

▌Musk posts content containing banana emojis

Musk retweeted the comment "Elon is the undisputed meme king. (banana symbol)" on X and replied: "(banana symbol) for scale".

▌VanEck executive: VanEck supports strategic Bitcoin reserves

Matthew Sigel, head of digital asset research at VanEck, posted on the X platform: "VanEck supports strategic Bitcoin reserves. No need to cite 'sources' - we will announce it ourselves." 

Previously, Fox reporter Eleanor Terrett cited sources as saying that BlackRock did not establish a strategic Bitcoin reserve.

▌Analysis: Pro-cryptocurrency candidate will take charge of the US Department of Commerce, and the listing of ETF options will push Bitcoin to a new high

With the listing of Bitcoin ETF options, the price of Bitcoin has reached a new high, reaching $93,905 per coin. The market expects that Bitcoin ETF options will increase the exposure of financial institutions to Bitcoin with a high probability. Options contracts allow investors to buy or sell an asset at a specific price and a predetermined time. Noelle Acheson, former head of market insights at Genesis, said that although the Chicago Mercantile Exchange already offers Bitcoin options, Bitcoin ETF spot options are a big deal for both retail investors and financial institutions. A deeper onshore derivatives market will improve the growing market complexity, which will enhance investor confidence in Bitcoin, bring in new investment groups, and enable more diversified investment and trading strategies. In addition, earlier reports that pro-cryptocurrency Howard Lutnick will be nominated by Trump as Secretary of Commerce also helped push Bitcoin higher.

Important Economic Dynamics

▌New York Fed says bank reserves are adequate, showing no obstacles to continued balance sheet reduction

The latest data from the New York Fed shows that the Federal Reserve has not encountered any obstacles in continuing to reduce the size of its balance sheet. The New York Fed reported on Thursday that its reserve demand elasticity indicator was -0.15 on November 13, which remained stable compared with a month ago. "Reserves remain ample," the New York Fed said in its report. The index began to be publicly released a month ago and is designed to show how ample or tight bank reserves are. The shift to negative numbers may indicate an increase in bank reserve tightness, which directly illustrates the Fed's continued efforts to reduce bond holdings through quantitative tightening (QT). The New York Fed's indicators show that there is no immediate need to stop this process, which is consistent with recent comments from Fed officials and market expectations that quantitative tightening will end sometime next year.

▌Shanghai Securities News: The dollar has limited room for upward movement, and the RMB exchange market shows positive signals

The US dollar index has been very popular in the foreign exchange market recently. In the past half month, the US dollar index has been unstoppable, breaking through the 104, 105, 106 and other levels, and has risen by more than 2.5% since November. Facing external headwinds, the previously strong RMB has recently fallen slightly. However, market participants have observed that the RMB exchange market is continuing to show positive signals. With the arrival of the year-end foreign exchange wave, the short-term depreciation pressure on the RMB may come to an end.

▌Poll: 35% of Americans hope that Trump will quickly pay attention to inflation after taking office

A Reuters/Ipsos survey released on Tuesday showed that Americans believe that inflation is the top issue that President-elect Trump should address within 100 days of taking office. About 35% of respondents in the three-day poll said inflation was an area Trump should focus on, compared with 30% who said immigration and 27% who said jobs and the overall economy. Another 23% said Trump should focus on unifying the country. Smaller portions of respondents said he should focus on taxes, crime or foreign conflicts. In addition, only 1% of respondents said Trump should focus on international trade and tariffs. The survey surveyed 1,014 adults across the United States, with a margin of error of about 3 percentage points.

▌Fed's Schmid: The fight against inflation is not over

Fed's Schmid said the fight against inflation is not over. Upcoming tariffs and immigration policies will be relevant to the Fed if they affect employment and inflation.

▌The three major U.S. stock indexes closed mixed

The three major U.S. stock indexes closed mixed, with the Nasdaq up 0.6%, the S&P 500 up 0.39%, and the Dow down 0.13%. Most large technology stocks rose, with Tesla up more than 5%, Intel and Netflix up more than 2%, Google and Apple up more than 1%, Meta and Microsoft up slightly; Nvidia fell more than 1%, and Amazon fell slightly. Trump Media Technology rose more than 16%, and the U.S. stock BKKT soared more than 162%. It is reported that Trump's social media company is in in-depth negotiations to acquire Bakkt, a cryptocurrency trading platform under the Intercontinental Exchange.

▌San Francisco Fed report: The U.S. labor market is still adding inflationary pressure

The San Francisco Fed's research report released on Monday said that the tight U.S. labor market is still adding inflationary pressure, although to a lesser extent than in 2022 and 2023. "The decline in demand for labor has pushed down inflation by nearly three-quarters of a percentage point over the past two years," wrote San Francisco Fed economists Regis Barnichon and Adam Hale Shapiro. "However, elevated demand still adds 0.3 to 0.4 percentage point to inflation through September 2024." Research from the San Francisco Fed shows that the job market remains a source of inflation. Powell estimated that inflation in October was 2.3% on the Fed's target measure and 2.8% on the measure excluding food and energy that the Fed uses to measure core inflation pressures.