BTC Above $150K Is ‘Speculation Fever’, SAB 121 Cancelled, And More: Hodlers Digest, January 19

The main news of the week

Nasdaq Seeks Redemptions for BlackRock's Bitcoin ETF

Nasdaq has filed on behalf of asset manager BlackRock, seeking a regulatory change to allow for in-kind creation and redemption of the position.

Bloomberg ETF analyst James Seifert said in a Jan. 24 X Post that BlackRock “should have allowed it to do this from the get-go” when the iShares Bitcoin Trust launched in January 2024 along with ten other U.S.-based Bitcoin ETFs.

On the same day the application was filed, six more crypto ETF applications were filed in the US.

Nasdaq has proposed to “allow trust bitcoins to be transferred in kind,” according to a Jan. 24 filing with the US Securities and Exchange Commission.

According to the filing, “permitted participants” — institutions that facilitate the creation and redemption of fund shares — can use cash or Bitcoin to create shares or receive cash or Bitcoin when purchasing shares.

Microstrategy May Pay Taxes on $19B Unverified Bitcoin Gains: Report

Even if you don't sell any bitcoins, MicroStrategy will have to pay taxes on unrealized gains.

Under the 2022 Inflation Reduction Act, Michael Saylor's MicroStrategy, the largest corporate bitcoin owner, will have to pay federal income tax on unrealized gains.

The law established a “corporate alternative minimum tax” where MicroStrategy would end up with a 15% tax rate based on a version of the company's adjusted earnings, The Wall Street Journal reported in a Jan. 24 report.

Still, the US Internal Revenue Service may create an exemption for BTC under President Donald Trump's more crypto-friendly administration.

On January 13, MicroStrategy's holdings exceeded 450,000 BTC after the company bought $243 million worth of BTC, worth more than $48 billion.

Thank you to Ross Ulbricht, the founder of the Silk Road, for giving Trump a full pardon

Silk Road founder Ross Ulbricht, who has been serving a double life sentence without parole, has publicly thanked US President Donald Trump after receiving a full pardon.

This is the first time Ulbricht has spoken publicly since his release from a maximum-security prison in Arizona, where he has been incarcerated for more than 11 years.

“Last night Donald Trump gave me a full pardon. I was working life without mercy and was imprisoned for more than 11 years. But he got me out. I am a free man now. So let it be known that Donald Trump is a man of his word,” Ulbricht said in a Jan. 23 video shared on X.

Ulbricht expressed his gratitude, calling the pardon an “incredible blessing.” He added:

“I'm so grateful, President Trump, for giving me this incredible blessing. I'm so, so grateful to get my life back, to get my future back, to get this second chance. This is a very important time for me and my entire family.”

The SEC has repealed the controversial crypto accounting rule SAB 121.

The US Securities and Exchange Commission has repealed a controversial rule that required financial companies holding crypto to be recorded as debt on their balance sheets.

A new Staff Accounting Bulletin (SAB) released on January 23 from the Commission says the agency's Rule SAB 121, published in March 2022, “repeals the interpretive guidance” the crypto industry has long sought to repeal.

“Poor, hello SAB 121!” SEC Commissioner Hester Pearce, head of the agency's crypto task force, wrote in a Jan. 23 X post. “It wasn't fun.”

The SEC published SAB 121 in March 2022, which required financial institutions holding crypto on behalf of their clients to report the assets as liabilities on their balance sheets. The crypto industry pushed back on the measure, saying it would make it more difficult to manage crypto.

“I am pleased to see the flawed SAB 121 bill repealed,” House Financial Services Committee Chairman French Hill said in a statement on X.

Elizabeth Warren suggests Elon Musk pay more taxes for government efficiency.

US Senator Elizabeth Warren has written an open letter to Department of Government Efficiency (DOGE) Chairman Elon Musk urging the federal government to cut wasteful spending.

According to the January 23 letter, Warren proposed fully decentralizing the Internal Revenue Service (IRS), closing the carried interest loophole and increasing the capital gains tax on property.

The wealthy appear to be the target of Warren's IRS proposal, as the socioeconomic group is mentioned four times in a brief four-paragraph section titled “Cutting Waste and Abuse in the Federal Tax Code.” With an estimated net worth of $426 billion, Musk definitely falls into that category.

Senator Warren expressed strong concerns about the DOGE process and its policies, particularly the potential conflicts of interest among its leadership:

“2024 was the beginning of the transition to widespread cryptocurrency acceptance, and the launch of new coins by President Donald Trump and First Lady Melania sets a great precedent for what's to come.”

The most memorable quotes

“2024 was the beginning of the transition to widespread cryptocurrency acceptance, and the launch of new coins by President Donald Trump and First Lady Melania sets a great precedent for what's to come.”

Baybit co-founder and CEO Ben Zhou

“A lot of governments hold gold, but I think they should hold Bitcoin because it's basically the new gold standard. I think the main principle is that you have to hold assets that hold value over time.”

Coinbase CEO Brian Armstrong

“If you fear the collapse of your currency, or if you fear the economic or political stability of your country, you can have a global tool called Bitcoin that can overcome those domestic fears.”

Black Rock CEO Larry Fink

As Trump rightly understands, the public's concern about Ross's plight is the way political persecution by the government has been carried out.

Matty Greenspan, founder and CEO of Quantum Economics.

Based on what I know, the Trump family will build one or more huge businesses on Ethereum.

Joe Lubin, founder of Ethereum and founder of Consensus

“I don't think Bitcoin is a threat to the US dollar.”

Goldman Sachs CEO David Solomon

Winners and losers

At the end of the week, Bitcoin (BTC) at $104,900, Ether (ETH) at $3,322 and XRP at $3.10. According to CoinMarketCap, the total market value is 3.60 trillion dollars.

Among the largest 100 cryptocurrencies, the top three altcoin gainers for the week were Official Trump (TRUMP) at 372.53%, Raydium (RAY) at 32.13% and GateToken (GT) at 24.35%.

The top three altcoin losers of the week were Sonic (formerly FTM) (S) at 31.97%, ai16z (AI16Z) at 30.77% and dogwifhat (WIF) at 30.68%. Be sure to read Cointelegraph's market analysis for more information on crypto prices.

Forecast of the week

Bitcoin may top $150k before repeating 2017 cycle, analyst says.

Bitcoin's price action could mimic the cycle from 2016 to 2017 and reach $150,000, said Glassnode lead analyst James Check.

Czech said on Thea's podcast show on January 23 that $120,000 to $150,000 is what he calls “top cloud” for Bitcoin, and any level above that won't last long.

“With a very, very low chance of staying at the top, we could absolutely remove that top,” Cheek said.

Bitcoin is currently trading at $103,019, and Czech added that the “average person” would be “very profitable” if it reached $120,000 — much more than if it reached $150,000.

“It's speculative fever beyond that, and I think maybe if we go beyond that, we'll go backwards,” he said.

According to Bitbo data, short-term holders of Bitcoin paid an average of $90,349 per BTC, while long-term holders paid an average of $24,627.

FUD of the week

John McPhee's widow launches memecoin, but some suspect fraud.

John McPhee's widow, Janice Elizabeth McPhee, has filed a lawsuit claiming she launched a memecoin in her late husband's honor, as the memecoin frenzy, fueled by the weekend launch of US President Donald Trump, continues to grow.

“You didn't think I was going to miss this cycle, did you?” McAfee tweeted on Jan. 23 via her late husband's X account. announced the launch of the token. During his lifetime, McPhee was a proponent of cryptocurrency, particularly Bitcoin, and its ability to reduce government power over the financial system.

Reactions from the crypto community on X were positive, but later analysis showed that 90 percent of the token's 100 million supply had already been distributed to hundreds of different wallets, with smaller amounts sent to two trading pools.

Crypto donations to extremist groups have increased in Europe – report

Cryptocurrency donations to extremist groups are down globally but rising in Europe, according to a report from blockchain data platform Chainalysis.

The report, shared with Cointelegraph, shows that the majority of crypto donations to extremist groups came from North America before 2017. Since then, Europe has been steadily infiltrating. Between 2022 and 2024, for example, Europe would account for nearly 50% of the extremist group Onchain's activity.

Not only are cryptocurrency donations to extremist groups in Europe increasing, but so are the size of those donations and the number of donors. In the year From 2023 to 2024, the deposit rate of at least five types of extremist groups increased year-over-year: white nationalist (270%), nationalist (164%), conspiracy (70%), anarchist (35%) and anti-Semitic (22%), the report notes.

Ledger founder released after days in prison in France: report

The founder of French cryptocurrency hardware wallet maker Ledger, David Balland, has been released from prison following a horrific kidnapping incident, according to a statement from the Paris prosecutor's office, cited by Bloomberg.

Balland was abducted from his home in central France early on January 21. He was held hostage until he was released in a police operation on the night of January 22. The hackers demanded a ransom in cryptocurrency.

Ledger was founded in 2014 by Balland et al. The devices are designed to keep users' private keys offline, thereby protecting digital assets from online exposure.

In the year The company, which raised 100 million euros ($109 million) by 2023, is now valued at 1.3 billion euros ($1.42 billion) and employs about 700 people.

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CHINESE BUSINESSES MADE MILLIONS FROM TRUMP, COINBASE IN THE PHILIPPINES? Asia Express

Top Chinese crypto traders make millions on TRUMP, Manila to head Coinbase's Armstrong, the rise of BIMCOIN.

Azuki Founder Airing Anime To ‘Billion Global Fans': Zagabond, NFT Creator

Like TRUMP, Azuki's newly aired ANIME “community coin” is making much of its offering available to the community.

Editorial staff

Cointelegraph magazine writers and reporters contributed to this article.