BTC ‘reasonable’ $180k target, NFTs fall in 2024, and more: Hodler’s Digest January 12

The main news of the week

The CEO of Coinbase has called on countries to establish Bitcoin reserves

Brian Armstrong, CEO of US-based cryptocurrency exchange Coinbase, has endorsed plans to create a strategic reserve of Bitcoin for global leaders.

In a Jan. 17 “Economic Freedom” blog post, Armstrong said cryptocurrencies are “the next phase of capitalism,” suggesting policymakers should integrate digital assets into their economies by 2025.

The Coinbase CEO's ideas include crypto-friendly rules, government efficiency, special economic zones, and hedges to protect Bitcoin's stock from inflation.

“The next global arms race will be in the digital economy, not in space,” Armstrong predicted. “Bitcoin can be as fundamental to the global economy as gold, and holdings of Bitcoin will be central to national security in a world that shifts the balance of power between nation-states.”

SEC charges digital currency group for misleading investors

The United States Securities and Exchange Commission has charged Digital Currency Group (DCG) and former Genesis Global Capital CEO Soichoro “Michael” Moro with misleading investors about Genesis' financial health following the collapse of Three Arrows Capital (3AC).

According to the Jan. 17 filing, DCG and Moro agreed to pay a combined $38.5 million in civil penalties, with DCG responsible for $38 million and Moro for $500,000.

Morrow and DCG agreed to civil penalties without admitting or denying violations of the Securities Act of 1933.

The settlement is the latest chapter in the legal saga of Genesis, which filed for Chapter 11 bankruptcy protection in January 2023 due to a 2022 default by 3AC — a former Genesis debtor.

Trump Plans Executive Order to Make Crypto a National Priority: Report

US President-elect Donald Trump is expected to sign an executive order designating crypto as a national priority once he takes office on January 20.

Citing people familiar with the plans, Bloomberg reported on January 17 that the order would direct regulatory agencies to work with the industry. It could also create a crypto council to support the industry's policy aspirations.

The order could be signed on Jan. 20 — Trump's first day back as president — but is not final and could be changed before it is made public, the report said.

With domestic industry heavily backing his campaign and the incoming president promising America will be the “crypto capital,” Trump is widely rumored to be lining up a crypto-related executive order one day.

The New York Times also reported on January 16 that crypto executives had provided input to Trump's crypto czar David Sachs on an executive order covering several areas of crypto policy.

The US government He said the money from the 2016 hack should be returned to Bitfinex.

U.S. government attorneys have recently filed a request for the return of funds lost to the cryptocurrency exchange due to the 2016 Bitfinex hack.

The January 14 legal filing provides for the return of approximately 94,643 BTC and an undisclosed amount of Bitcoin Cash, Bitcoin Satoshi Vision and Bitcoin Gold to the exchange in kind via hard forks.

Ilya Lichtenstein and his wife Heather Morgan, also known as Razilkan, were arrested in 2022 and convicted of hacking the Bitfinex exchange in 2016, resulting in the theft of 119,754 BTC.

At the time, only $72 million worth of bitcoins were stolen. Today, that same amount of BTC is worth more than $11.8 billion — at the time sparking a debate over Bitfinex's compensation plan for hack victims.

NFTs have performed worst since 2020: Dapradar

The non-fungible token (NFT) market in 2024 had its worst year for trading volume and sales since 2020 – marred by volatility and rising token prices, a Dapradar report found.

Blockchain analysis platform DAP Industry Report 2024, published on January 14, found that NFT trading volume fell 19 percent from 2023 to $13.7 billion last year, while sales count fell 18 percent to 50 million, “making 2024 one of the worst performing years since 2020.” “

Dapradar reported that the Q1 trading volume of NFTs increased by 4% to $5.3 billion compared to Q1 2023. But according to the report, “the pace was short” in Q3, which fell to 1.5 billion dollars and increased to 2.6 billion dollars. In Q4.

Winners and losers

At the end of the week, Bitcoin (BTC) at $104,304, Ether (ETH) at $3,476 and XRP at $3.30. According to CoinMarketCap, the total market cap is $3.31 trillion.

Among the top 100 cryptocurrencies, the top three altcoin gainers for the week were Fartcoin (FARTCOIN) at 69.92%, XDC Network (XDC) at 48.40% and XRP (XRP) at 41.17%.

The top three altcoin losers of the week were Ai16z (AI16Z) at 16.25%, Bitcoin SV (BSV) at 7.34% and Sui (SUI) at 6.05%. Be sure to read Cointelegraph's market analysis for more information on crypto prices.

The most memorable quotes

“For now, we need regulatory clarity and guidance. We'll have to see what the laws look like from the US, then we'll decide.

Tether CEO Paolo Arduino

“I don't think anybody who buys here for $90,000 is going to lose. If you're trying to book this time, you'll probably get lucky and hit $70,000.

Tom Lee, Chief Investment Officer of Fundstrat Capital

No other entity can be held responsible for the global cyber fraud that has destroyed countless lives like Huione Insurance.

Elliptic, a blockchain analytics firm

“AI agents are expected to play a more prominent role in decentralized societies.”

JD Serafin, CEO of Rainmaker

“2024 is likely to be a record year for flows to illicit actors as these figures are low estimates based on inflows into the illicit addresses we have identified to date.”

Chainalysis, blockchain analytics firm

“This news brought a smile to the face of crypto investors, indicating a positive change in risk-averse markets. As the data painted a positive macroeconomic picture, the crypto market experienced a strong rally.

Burakkesmeci, CryptoQuant contributor

Top forecast of the week

Bitcoin Price on Track to $180K by 2025: Interview with Filbfilb

Bitcoin hitting $130,000 would be a good outcome for the current bull market, according to Ysmuth long-time trader and analyst Phil Phil.

In a recent interview with Cointelegraph, the co-founder of trading suite DecenTrader gave his predictions on where BTC's price action is headed this cycle.

Bitcoin bounces back after a two-month low and holds above $100,000 since Jan. 17, according to data from Cointelegraph Markets Pro and TradingView.

Good things are in store for Philphilip – especially with the incoming US administration under President-elect Donald Trump.

Pro-Bitcoin and pro-crypto policies may provide short-term market pressure, but it may not all be smooth sailing — any talk of trade wars, for example, will result in a bull run for the risk-asset.

That said, BTC/USD should lead the pack, with Bitcoin hitting new highs in crypto market dominance, Filbfilb said.

“I don't see any evidence based on previous cyclical data that suggests that Bitcoin has reached a new high. Obviously, it might be different this time, but I think it's reasonable that Bitcoin could continue to the $180,000 target that I was looking at in early 2023.” There is a debate,” Philebphile told Cointelegraph.

Top FUD of the week

The US consumer finance watchdog has accused digital wallets of treating them like banks

Two tech trade groups have filed a lawsuit against the U.S. Consumer Financial Protection Bureau against its push to treat payment apps and digital wallets like banks.

The complaint, filed Jan. 16 by Technet — a bipartisan network of tech CEOs and senior executives — and internet freedom advocacy group NetChoice challenges the rule passed by the Consumer Financial Protection Bureau (CFPB) in December.

The rule also limits the CFPB's regulatory authority by targeting large players such as payment apps, digital wallets and other non-bank financial services providers. It expands on “commonly used digital consumer payment applications”.

The 259-page regulation does not include cryptowallet providers or decentralized wallets, but targets large non-banking companies.

Upbit crypto exchange receives a ban notice in South Korea

Upbit, one of the largest cryptocurrency exchanges in South Korea, has reportedly received a suspension notice for a Know Your Customer violation.

The Financial Intelligence Unit (FIU) of South Korea's Financial Services Commission has notified Upbit of possible punitive measures, according to a Jan. 16 Naver report.

As part of the measures, the authorities want to suspend new user registrations on Upbit for six months, existing users are not affected.

According to the report, Upbit can submit its opinion on the bans to the FIU on January 20. The authority plans to make a final decision on the punishment on January 21.

Yuga Labs Faces Backlash Over CryptoPunks IP Sale Rumors

The CryptoPunks community is in the throes of rumors that Yuga Labs may be considering selling the intellectual property (IP) rights to CryptoPunks' NFT collection.

Rumors released on January 14 by X's pseudonymous Azuki researcher Wale.Moka have sparked outrage among fans and industry voices alike.

According to Wale.moca, “multiple sources close to the matter” have indicated that Yuga Labs may be “in the process” of selling the CryptoPunks IP. Yuga Labs acquired IP rights to 423 CryptoPunks NFTs from Larva Labs in March 2022.

Yoga Labs co-founder Greg Solano broke the news on X:

“Many people have approached us, esp[ecially] In the last few months. […] Not that we are doing anything.

The best magazine stories of the week

Stablecoin Launches for Cyber-Scammers, Sony L2 Drama: Asia Express

Cybercriminals' marketplace launches USDH stablecoin, Sony's new blockchain halts memecoin contracts and more.

Sex Robots, Agent Hitman Contracts, Prosthesis: AI Eye Goes Wild.

From sex robots to hitman contract agents, six amazing AI stories gone wild, and two serious stories: AI Eye

Bitcoin and the Threat of Quantum Computing: Timeline and Solutions (2025–2035)

Quantum computers aren't an imminent threat to Bitcoin, and it won't affect all wallets – but it's a real problem and there are solutions.

Editorial staff

Cointelegraph magazine writers and reporters contributed to this article.