Latest news with #U.S.StrategicBitcoinReserve
Yahoo
12 hours ago
- Business
- Yahoo
President Donald Trump Just Delivered Great News to Bitcoin Investors
President Donald Trump's presidency has been positive for crypto investors. Trump has removed road blocks and installed crypto advocates in his cabinet and as advisers. The administration just announced initiatives that could lead to government purchases of the world's largest cryptocurrency. 10 stocks we like better than Bitcoin › President Donald Trump's election victory in November has turned into a sweet dream for crypto investors, none more so than for those who invest in the world's most-valuable cryptocurrency, Bitcoin (CRYPTO: BTC). Since Trump's win last November, Bitcoin is up almost to 60% (as of May 29) and has surpassed $111,000 on several occasions. Trump has surrounded himself with pro-crypto advisors and installed the former head of a financial and crypto consulting firm to run the Securities and Exchange Commission. He's also announced the creation of a U.S. Strategic Bitcoin Reserve to hold Bitcoin currently in the government's possession, and perhaps even purchase more. And Trump just delivered more great news to Bitcoin investors. During former President Joe Biden's tenure, the Labor Department issued guidance to U.S. companies warning them to use "extreme care" before allowing employees to invest in cryptocurrencies through their 401(k) savings accounts: At this stage in their development, cryptocurrencies have been subject to extreme price volatility, which may be due to the many uncertainties associated with valuing these assets, speculative conduct, the amount of fictitious trading reported, widely published incidents of theft and fraud, and other factors. Extreme volatility can have a devastating impact on participants, especially those approaching retirement and those with substantial allocations to cryptocurrency. Guidance from federal agencies isn't the law of the land but it tends to have a sobering effect, as companies often get concerned that by acting against official guidance they may find themselves under scrutiny. The Trump administration has now rescinded this guidance, which is more or less a green light for employers to consider offering crypto or crypto-related investments to their employees, if they so choose. However, the current Labor Department added that it is "neither endorsing, nor disapproving of" crypto investments in 401(k) accounts. In 2024, the U.S. Government Accountability Office found that while some 401(k) plans were offering workers the ability to invest in crypto, actual investment remained low. Still, the new guidance and friendly approach toward crypto by the Trump administration is likely to change this, and it presents yet another tailwind for Bitcoin and the sector. Most crypto experts think that wider adoption by more mainstream financial institutions will help move crypto prices higher. Retirement savings in 401(k) plans totaled more than $8.9 trillion as of late 2024, so even a gradual increase in crypto purchases by this group could make a big difference. Now, whether investors should consider adding crypto to their 401(k) accounts is another question. Last year, BlackRock, the world's largest asset manager, published a report on whether Bitcoin should be included in a multi-asset portfolio. It ultimately concluded that Bitcoin could consume a similar allocation as the high-flying "Magnificent Seven" stocks. According to the report: Those stocks [the Magnificent Seven] represent single portfolio holdings that account for a comparatively large share of portfolio risk as with bitcoin. In a traditional portfolio with a mix of 60% stocks and 40% bonds, those seven stocks each account for, on average, about the same share of overall portfolio risk as a 1-2% allocation to bitcoin. We think that's a reasonable range for a bitcoin exposure. Bitcoin is now viewed by many as the equivalent of digital gold and therefore a hedge against inflation and a flight to safety as U.S. fiscal concerns mount. For this reason, I think it does make sense to have some small exposure to Bitcoin in your portfolio because it offers a form of diversification away from stocks and bonds. Bitcoin has shown resilience and some similar attributes to gold such as its finite supply of 21 million tokens. In my opinion, Bitcoin is the only cryptocurrency right now that deserves a small allocation in a 401(k) account. Every other crypto has proven volatile and shows no real attributes that make a multi-asset portfolio any safer. Before you buy stock in Bitcoin, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Bitcoin wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor's total average return is 979% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Bram Berkowitz has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy. President Donald Trump Just Delivered Great News to Bitcoin Investors was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
12 hours ago
- Business
- Yahoo
President Donald Trump Just Delivered Great News to Bitcoin Investors
President Donald Trump's presidency has been positive for crypto investors. Trump has removed road blocks and installed crypto advocates in his cabinet and as advisers. The administration just announced initiatives that could lead to government purchases of the world's largest cryptocurrency. 10 stocks we like better than Bitcoin › President Donald Trump's election victory in November has turned into a sweet dream for crypto investors, none more so than for those who invest in the world's most-valuable cryptocurrency, Bitcoin (CRYPTO: BTC). Since Trump's win last November, Bitcoin is up almost to 60% (as of May 29) and has surpassed $111,000 on several occasions. Trump has surrounded himself with pro-crypto advisors and installed the former head of a financial and crypto consulting firm to run the Securities and Exchange Commission. He's also announced the creation of a U.S. Strategic Bitcoin Reserve to hold Bitcoin currently in the government's possession, and perhaps even purchase more. And Trump just delivered more great news to Bitcoin investors. During former President Joe Biden's tenure, the Labor Department issued guidance to U.S. companies warning them to use "extreme care" before allowing employees to invest in cryptocurrencies through their 401(k) savings accounts: At this stage in their development, cryptocurrencies have been subject to extreme price volatility, which may be due to the many uncertainties associated with valuing these assets, speculative conduct, the amount of fictitious trading reported, widely published incidents of theft and fraud, and other factors. Extreme volatility can have a devastating impact on participants, especially those approaching retirement and those with substantial allocations to cryptocurrency. Guidance from federal agencies isn't the law of the land but it tends to have a sobering effect, as companies often get concerned that by acting against official guidance they may find themselves under scrutiny. The Trump administration has now rescinded this guidance, which is more or less a green light for employers to consider offering crypto or crypto-related investments to their employees, if they so choose. However, the current Labor Department added that it is "neither endorsing, nor disapproving of" crypto investments in 401(k) accounts. In 2024, the U.S. Government Accountability Office found that while some 401(k) plans were offering workers the ability to invest in crypto, actual investment remained low. Still, the new guidance and friendly approach toward crypto by the Trump administration is likely to change this, and it presents yet another tailwind for Bitcoin and the sector. Most crypto experts think that wider adoption by more mainstream financial institutions will help move crypto prices higher. Retirement savings in 401(k) plans totaled more than $8.9 trillion as of late 2024, so even a gradual increase in crypto purchases by this group could make a big difference. Now, whether investors should consider adding crypto to their 401(k) accounts is another question. Last year, BlackRock, the world's largest asset manager, published a report on whether Bitcoin should be included in a multi-asset portfolio. It ultimately concluded that Bitcoin could consume a similar allocation as the high-flying "Magnificent Seven" stocks. According to the report: Those stocks [the Magnificent Seven] represent single portfolio holdings that account for a comparatively large share of portfolio risk as with bitcoin. In a traditional portfolio with a mix of 60% stocks and 40% bonds, those seven stocks each account for, on average, about the same share of overall portfolio risk as a 1-2% allocation to bitcoin. We think that's a reasonable range for a bitcoin exposure. Bitcoin is now viewed by many as the equivalent of digital gold and therefore a hedge against inflation and a flight to safety as U.S. fiscal concerns mount. For this reason, I think it does make sense to have some small exposure to Bitcoin in your portfolio because it offers a form of diversification away from stocks and bonds. Bitcoin has shown resilience and some similar attributes to gold such as its finite supply of 21 million tokens. In my opinion, Bitcoin is the only cryptocurrency right now that deserves a small allocation in a 401(k) account. Every other crypto has proven volatile and shows no real attributes that make a multi-asset portfolio any safer. Before you buy stock in Bitcoin, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Bitcoin wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor's total average return is 979% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Bram Berkowitz has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy. President Donald Trump Just Delivered Great News to Bitcoin Investors was originally published by The Motley Fool Sign in to access your portfolio
CNBC
3 days ago
- Business
- CNBC
Saylor's bitcoin buying strategy is 'exploding' globally, but Wall Street is skeptical
LAS VEGAS — The bitcoin treasury play that lifted Strategy's market cap past $80 billion is now being mimicked by meme stock companies, media firms, and multinational conglomerates. But Wall Street isn't buying all the hype. This week, Trump Media announced plans to raise $2.5 billion to buy bitcoin, and GameStop revealed a $500 million allocation. Meanwhile, Tether, SoftBank, and Strike's Jack Mallers unveiled Twenty One, a bitcoin-native public company expected to launch with more than 42,000 bitcoin on its balance sheet, enough to make it the third-largest corporate holder of the asset globally. For now, the market doesn't see the next Strategy in any of them. Trump Media shares have dropped more than 20% since the announcement, while GameStop is down nearly 17%. Strategy, formerly known as MicroStrategy, has multiplied by 26 times since the end of 2022, amassing a bitcoin stake worth over $60 billion. "Maybe the market wanted them to buy more bitcoin," said Strategy Chairman Michael Saylor in an interview at Bitcoin 2025 in Las Vegas. "But these are short-term dynamics. Over the long term, bitcoin on the balance sheet has proven to be extraordinarily popular." Saylor called Trump Media's move "courageous, aggressive, and intelligent" — and said the flood of similar announcements marks a global shift in corporate finance. "Everywhere I go at this conference, someone says, you know, I'm working on a bitcoin treasury company in Hong Kong. I'm doing this thing in Korea. I've got this thing I'm working on in Abu Dhabi. We're going to do this in the Middle East, you know, we've got this in the U.K.," he said. "There's an explosion of interest right now." Saylor said bitcoin ambassadors are "planting the orange flag everywhere on earth." What began as a fringe financial maneuver is quickly becoming a geopolitical race. Under the Biden administration, corporate bitcoin adoption was often treated as a regulatory red flag. But under President Donald Trump, the tone has changed. In March, Trump signed an executive order establishing a U.S. Strategic Bitcoin Reserve, instructing federal agencies to treat bitcoin as a long-term store of value. The reserve will be funded entirely through bitcoin seized in criminal and civil forfeiture cases, according to White House Crypto and AI Czar David Sacks. The order also empowers the government to explore additional budget-neutral mechanisms for acquiring more bitcoin. For the first time, the federal government will conduct a full audit of its digital asset holdings, currently estimated at more than 200,000 bitcoin. The order explicitly prohibits the sale of any bitcoin from the reserve, cementing its role as a permanent sovereign asset. Vice President JD Vance this week became the first sitting vice president to address the bitcoin community directly, framing crypto as a hedge against inflation, censorship, and "unelected bureaucrats." And in a further move to boost bitcoin, the Department of Labor rolled back guidance that had discouraged bitcoin investments in retirement plans. "No force on Earth can stop an idea whose time has come," Saylor said. "Bitcoin is digital capital and maybe the most explosive idea of the era." Some corners of the corporate world are still resistant. Late last year, Microsoft shareholders rejected a proposal to use some of the software company's massive cash pile to follow Saylor's lead. In a video presentation supporting the effort, Saylor told investors that "Microsoft can't afford to miss the next technology wave." While Strategy has reaped the rewards of early adoption, Saylor suggested the market's cooler reaction to Trump Media and GameStop may stem more from structural financing dynamics than from skepticism toward bitcoin itself. He pointed to GameStop's initial announcement that it was considering a bitcoin strategy, which led to a 50% pop in the stock and tenfold increase in trading volume. The company quickly capitalized on the momentum with a $1.5 billion convertible bond raise — a move he described as "extraordinarily successful." Trump Media took a similar approach, raising capital through a large convertible bond offering. Saylor said those financing methods can create short-term downward pressure, but that over time investors will benefit. When it comes to Strategy, Saylor said there's no ceiling to his bitcoin accumulation plans. His company is already by far the largest corporate holder of the cryptocurrency. "We'll keep buying bitcoin," he told CNBC. "We expect the price of bitcoin will keep going up. We think it will get exponentially harder to buy bitcoin, but we will work exponentially more efficiently to buy bitcoin." For critics who worry that state and media actors embracing bitcoin will undermine its decentralized ideals, Saylor argues the opposite. "The network is very anti-fragile, and there's a balance of power here," he said. "The more actors that come into the ecosystem, the more diverse, the more distributed the protocol is, the more incorruptible it becomes, the more robust it becomes, and so that means the more trustworthy it becomes to larger economic actors who otherwise would be afraid to put all of their economic weight on the network."
Yahoo
20-05-2025
- Business
- Yahoo
Bitcoin's Price Just Passed $100,000. Here's What Might Happen Next.
Economic pressures may stop Bitcoin from setting a new high in the short term. Bitcoin behaves more like a tech stock than digital gold right now. Adoption will be crucial for long-term success, whether as a store of value or a way to transfer money internationally. 10 stocks we like better than Bitcoin › Bitcoin (CRYPTO: BTC) passed the all-important $100,000 barrier on May 8 after the U.S. reached a trade deal with the U.K. The deal triggered a surge of investor optimism, and the market switched to a more risk-on mode. The S&P 500 (SNPINDEX: ^GSPC) has already erased its losses spurred by President Donald Trump's tariff plans, and crypto investors are wondering whether Bitcoin might break new ground with another all-time high. The question of what's next can be broken down into two parts: the immediate matter of how much digital currencies can grow under a more crypto-friendly administration, and the longer-term question of whether Bitcoin might achieve all its believers hope it might. It's been more than a week since Bitcoin broke the $100,000 mark and, despite bullish hopes, it hasn't gone on to set a new high. Even a trade agreement with China failed to spur crypto's leading lady into action. In fact, Bitcoin's price dipped slightly after the deal was reached. Some view Bitcoin as a hedge against a falling dollar and wider global uncertainty. It has yet to prove itself in this regard. While it has outperformed the S&P 500 so far this year, it's extremely volatile. At the time of writing, Bitcoin is up more than 10% year to date, while the S&P 500 is up just over 1%, and gold is up more than 20%. Moreover, there's a lot of correlation between Bitcoin's performance and other high-risk assets, particularly tech stocks. That may change if cryptocurrency continues to transition from a niche alternative asset to the mainstream. Spot Bitcoin exchange-traded funds (ETFs), increased institutional adoption, and the U.S. Strategic Bitcoin Reserve all play a part in that journey. Some insiders suggest Bitcoin might top $220,000 before the year is out. That looks optimistic given the border economic environment. Some economists warn we've yet to see the full impact of tariffs, and the U.S. has yet to close tariff negotiations with many countries. A lot of investors are in wait-and-see mode. If the economy slows more or falls into a recession, Bitcoin will not be immune. It would be exciting to see Bitcoin soar again this year. But for buy-and-hold investors, what matters more is how it might perform in the coming decade or more. It is still a relatively new asset, and there's a lot we don't know. Here are some of the ways analysts, such as those at Ark Invest, think Bitcoin could reach $1 million or more by 2030: A currency for emerging markets: Bitcoin is already legal tender in El Salvador. The Central African Republic initially followed suit, but subsequently reversed its original decision. It is an important driver for adoption and can be useful in countries with unstable currencies or where many people are underbanked. International remittance: Bitcoin is starting to take market share in the international money transfer market. The blockchain can make it faster and cheaper to send money to another country. Straits Research predicts the global digital remittance market will be worth almost $84 billion by 2032. As digital gold: Bitcoin's capped supply and decentralized nature could make it an attractive store of value. It is easier to store and move around than physical gold. However, it's also more volatile and carries more risk. It still has a way to go to establish its safe-asset credentials. For those things to happen, the technology needs to work, and people need to trust crypto. Regulation will help build trust. For example, if the U.S. passes a clear framework for digital assets, it could help crypto projects thrive, particularly if the rules encourage growth while also protecting consumers. In terms of technology, cryptocurrency is still evolving. There's a huge network of developers working to address various issues, such as security, transaction speeds, and overall efficiency. That needs to continue and -- importantly -- Bitcoin needs to avoid any serious security failures. Bitcoin relies on cryptography, and quantum computers excel in breaking cryptography. While quantum computing is not sophisticated enough today to pose a risk to digital assets, that could change. BlackRock recently included this risk in the Securities and Exchange Commission filing for its (NASDAQ: IBIT). Bitcoin has a lot going for it right now, from a crypto-friendly administration in the U.S. to an uncertain economic climate that's fueling investor diversification. But if you're looking for a safe bet, make sure you understand Bitcoin's own specific challenges and risks. Don't speculate on another bull run this year -- instead, see whether it makes sense to invest a small percentage of your portfolio into Bitcoin in the long term. Before you buy stock in Bitcoin, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Bitcoin wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $642,582!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,879!* Now, it's worth noting Stock Advisor's total average return is 975% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Emma Newbery has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy. Bitcoin's Price Just Passed $100,000. Here's What Might Happen Next. was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
04-05-2025
- Business
- Yahoo
3 Ways Bitcoin Has Proved It Has Staying Power in 2025
Bitcoin is surviving this year. It's also being stockpiled by major companies -- and soon possibly even governments. The same can't be said for most other cryptocurrencies. Most cryptocurrencies haven't escaped unscathed from the market's chaos and economic disruptions of 2025 so far. But, at least up until now, Bitcoin (CRYPTO: BTC) is holding together reasonably well. And that's just one of the ways that it is proving that it has staying power. Let's take a look at a few of those in detail. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » When governments buy or otherwise procure Bitcoin, they support the idea that it's an asset that's going to be valuable for a while. That's doubly true when governments are doing so after changing their tune about whether to allow the asset to be legally held and exchanged at all. And it's this exact situation that shows Bitcoin is proving that it has staying power. The biggest development is the planned U.S. Strategic Bitcoin Reserve (SBR) policy, which mandates the government to retain coins it acquires via asset forfeitures and other methods rather than liquidating them for cash. While the U.S. SBR is not yet implemented, and it may never be -- or it might be, and then reversed by a future administration -- the gist of the situation is that the U.S. will aspire to hold the coins it obtains indefinitely rather than selling them. Other countries may soon follow with similar policies, given that they're investigating the merits of doing so currently. Once players with a lot of financial heft make the move to hold the coin, smaller ones are likely to follow, as the risk of retaining assets for which there isn't a buyer of sufficient size becomes much lower. And that will simply accelerate this trend, cementing Bitcoin's position as an asset that governments like to hold for the long term. Much like how nations holding Bitcoin encourages others to do the same, when big companies like Tesla buy and hold it, the asset becomes more legitimate in the eyes of other big companies, increasing their chance of buying it. This year wasn't the first time that Tesla or others purchased Bitcoin, but so far it has been a continuation and expansion of the trend. Another critical new type of holder are banks and other financial institutions. Whereas before the regulatory picture was too unclear for these players to buy in with gusto, that problem is rapidly receding thanks to a new set of leaders at the Securities and Exchange Commission (SEC), who are viewed as being very pro-crypto. Soon enough, big banks might be both allowed and willing to hold vast sums of Bitcoin on their balance sheets to capture some of its upside over time. They wouldn't be interested in doing that if they thought Bitcoin was a flash in the pan, and they're more likely to hold on to their coins than small investors. In short, the asset now has more staying power than it did before because some of the market's most-enduring competitors are opting to hold it for their own purposes. The prospects of a trade war between the U.S. and the rest of the world have fed huge uncertainty into financial markets, and with good reason. If trade flows decline, economies will struggle, and the businesses that compete within those economies will also, thereby depressing their stock prices, among other impacts. On paper, Bitcoin is not directly vulnerable to detrimental trade impacts. In practice, it's widely assumed that as a risk asset, its price will decline sharply when conditions in economies or in the financial markets start to deteriorate. That has not yet happened. Take a look at this chart: As you can see, the story here isn't that Bitcoin is flying while everything else is crashing. It's that it isn't crashing precisely when everything else is struggling, for some very clear reasons. If it continues to exhibit this behavior, and it might not, it would ratify the idea that it could be an asset that isn't tightly correlated with the traditional financial markets, despite the fact that many of the businesses within those markets hold it directly. Such a confirmation would also support the idea that it might be a safe haven of sorts, like gold. For now, just take this as a third sign that Bitcoin isn't going anywhere anytime soon. If it survives the ongoing turbulence mostly unscathed, and it might, it'll be yet another big vote in favor of it having unusual staying power. Before you buy stock in Bitcoin, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Bitcoin wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $623,685!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $701,781!* Now, it's worth noting Stock Advisor's total average return is 906% — a market-crushing outperformance compared to 164% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 28, 2025 Alex Carchidi has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin and Tesla. The Motley Fool has a disclosure policy. 3 Ways Bitcoin Has Proved It Has Staying Power in 2025 was originally published by The Motley Fool Sign in to access your portfolio
