Changpeng Zhao predicts China will ‘inevitably’ establish a bitcoin reserve
Former Binance CEO Changpeng “CZ” Zhao predicts that China will eventually establish a Bitcoin (BTC) reserve, though he acknowledges the challenges in forecasting the country’s crypto policies due to its lack of transparency. Speaking at the Bitcoin MENA conference in Abu Dhabi on Dec. 9, Zhao suggested that smaller nations might be the first to adopt Bitcoin reserves, with larger countries like China potentially following over time.
Zhao referenced U.S. President-elect Donald Trump’s campaign promise to create a national Bitcoin stockpile as a potential catalyst for other countries to act. He speculated that if such a reserve were activated under Trump’s administration, it could prompt nations like China to accumulate BTC. While Zhao stated he had no evidence of current Bitcoin hoarding by the Chinese government, he deemed it “inevitable,” as Bitcoin represents a unique “hard asset” that governments may increasingly value.
China’s ability to rapidly implement policies could enable it to act decisively once it chooses to establish a Bitcoin reserve. Zhao suggested the government might accumulate Bitcoin quietly before announcing such a move, aligning with its strategic approach to other financial policies.
The idea of a Bitcoin reserve has drawn criticism, with skeptics arguing that such moves primarily benefit existing BTC holders by driving up the cryptocurrency’s price. Despite this, the notion of strategic Bitcoin stockpiling is gaining traction in geopolitical and financial discussions.
Zhao’s remarks come amid his reduced involvement in the crypto space following his departure from Binance in November 2023. After serving four months in U.S. federal prison for violating Anti-Money Laundering laws, Zhao is barred from managing the exchange and other business activities. However, he hinted at a potential pardon from Trump upon the latter’s inauguration in January 2024.
Source: Cointelegraph
XRP breaks 7-year trend: dubbed ‘most powerful chart in crypto
XRP is experiencing a major breakout, registering its highest weekly close in years at $2.60 and forming its first higher high since January 2018. Analysts are optimistic about its market structure, with veteran trader Peter Brandt calling XRP’s chart “the most powerful in the crypto world.” Brandt highlighted a multimonth breakout above a symmetrical triangle pattern, signaling bullish momentum with the potential for XRP to reach its all-time high near $3.40.
Short-term analysis suggests $2.67 as a critical level to flip into support for continued upward movement. Independent trader Dom noted that while XRP’s recent rally to $2.60 is a strong signal, flipping $2.67 into support is essential for sustained bullish trends.
XRP’s bullish pennant pattern, evident on the 4-hour chart, mirrors a previous breakout in November, which propelled the token past key resistance levels. The current setup includes bullish confirmations, such as a retest of the 50-day exponential moving average (EMA) and the relative strength index (RSI) stabilizing around the 50 mark. These indicators suggest a potential rally toward Fibonacci extension levels at 1.618 and 2.272, with an immediate target of $3.80 before year-end.
However, skepticism exists. Rajat Soni, a personal finance educator, expressed doubts, describing XRP’s recent price rise as a potential “pump and dump” scheme. He warned investors of possible manipulation, cautioning against overconfidence in its sustainability.
Despite contrasting views, XRP’s technical indicators point to strong upward momentum. If the bullish scenario unfolds, XRP could break past its all-time high, solidifying its position as a leading altcoin with renewed investor interest. The coming weeks will determine whether the breakout leads to sustained growth or faces challenges from bearish sentiment.
Source: Cointelegraph
MicroStrategy doubles down: acquires 21.500 bitcoin amid record highs
MicroStrategy, led by co-founder and chairman Michael Saylor, continues to amass Bitcoin (BTC) even as the cryptocurrency reaches record highs. Between December 2 and 8, the company purchased 21,550 BTC for $2.1 billion, paying an average of $98,783 per BTC. This brings MicroStrategy’s total holdings to 423,650 BTC, acquired at a cumulative cost of $25.6 billion, or an average price of $60,324 per BTC.
The latest acquisition came as Bitcoin surpassed the $100,000 mark for the first time on December 5, setting new all-time highs. Despite the steep price, Saylor remains highly bullish, expressing confidence that the company will continue to buy Bitcoin even if it reaches $1 million per coin. He has famously stated his belief in the cryptocurrency as a long-term store of value and continues to advocate for a “hodl” (hold on for dear life) strategy.
In a recent appearance on Yahoo Finance, Saylor not only reinforced his confidence in Bitcoin but also urged the U.S. government to shift its gold reserves into Bitcoin. He argued that replacing gold with Bitcoin would be a strategic move, potentially leading to significant financial gains for the country while weakening adversaries that hold gold assets.
Saylor’s comments align with ongoing debates about Bitcoin’s role as a competitor to gold. U.S. Federal Reserve Chair Jerome Powell recently acknowledged Bitcoin as an alternative to gold, though he does not see it as a threat to the U.S. dollar.
Through aggressive Bitcoin acquisitions and strong advocacy, MicroStrategy and Saylor continue to make waves in the cryptocurrency world, positioning themselves as key players in Bitcoin’s evolving role in global finance.
Source: Cointelegraph