Weekly SmartPills #52
Financial Markets
Bitcoin has surpassed $100,000, marking a significant milestone in its history. The surge is driven by optimism about President-elect Donald Trump's pro-crypto policies, including appointing Paul Atkins to lead the SEC. This move signals reduced regulatory scrutiny, boosting market confidence. Bitcoin's valuation now exceeds $2 trillion, making it one of the most significant global financial assets. The rally follows institutional adoption through ETFs and reflects a broader trend of Bitcoin's integration into mainstream finance, despite past volatility and controversies.
The S&P 500 reached new record highs, driven by positive remarks from Jerome Powell about the U.S. economy and renewed optimism surrounding artificial intelligence. The Nasdaq rose by 1.3%, while the Dow Jones and S&P 500 gained 0.7% and 0.6%, respectively. Optimistic corporate forecasts and a moderate growth report from the Fed’s Beige Book support market gains, although investor sentiment shows signs of excessive euphoria, potentially signaling short-term volatility.
Economics and Regulation
Last month, Donald Trump won the United States elections. He had branded himself as the “pro-crypto” candidate in his campaigns. The former president promised to launch a strategic national crypto stockpile if elected. He also pledged in his speech that he will keep 100% of all the bitcoin the U.S. government currently holds or acquires in the future. It is wondered what will happen in January when Trump is sworn in.
South Korea delays crypto tax to 2027. The country had agreed to a 20% tax on digital asset income in 2020, and it was scheduled to take effect in 2025. Members of the opposition Democratic Party pledged to ensure the taxes are implemented next year. However, the party caved to the will of of the ruling People Power Party and consented another postponement, at a total of two years.
Blockchain and Innovation
The partnership between Félix, Bitso, and the Stellar network is transforming crossborder remittances for U.S.-based Latino immigrants. By leveraging blockchain and the USDC stablecoin, the process now happens in seconds instead of days. Félix, a WhatsApp-based payment platform, and Bitso, Latin America's largest crypto exchange, enable fast, affordable, and secure money transfers to Latin America. The process involves using AI chatbots on WhatsApp to facilitate payments through a secure link, with funds converted into Mexican pesos via Bitso for quick delivery. This collaboration aims to expand financial services across Latin America.
Trends and Statistics
The projected revenue in cryptocurrencies market for Italy is expected to reach 1,247 million $ by 2024, which indicates an annual growth rate of -3.61%. This projects 1,202 million $ by 2025. Number of users in the cryptocurrencies market is projected to be 18.18 million by 2025. The user penetration rate is expected to increase from 30.85% to 31.07% in 2025. Bitcoin therefore reconfirms itself as the digital asset preferred by Italian investors.