Bitcoin's Back, Moving Past the $95,000 Mark

TL;DR

• Bitcoin rallied amid market reaction to Jerome Powell’s video message on X. 

• A Bitcoin and Gold ETP is the latest ‘hard asset’ fund on the London Stock Exchange. 

• The U.S. authorities may have violated Trump's Executive Order and sold Bitcoin.

Bitcoin Rallied After Fed Chairman Jerome Powell Posted a Video Message on X 👀

I don't think anyone had the following on their bingo cards. 

Jerome Powell took to X and released this video: 

In the video message, he explained that the Department of Justice (DOJ) served the Federal Reserve with grand jury subpoenas regarding statements Powell made last June at a Senate banking committee hearing. Part of his statements at the hearing concerned the restoration of Federal Reserve office buildings.

Powell said the DOJ’s subpoenas could lead to a potential criminal indictment.

The remainder of the video was basically an explanation that Powell and the Fed respect the rule of law, and that the pressure against him and the Fed stems from the current administration's political pressure to lower rates. 

Bitcoin reacted to the video shortly after, rallying by 1.5% from around $90,000 to $92,000, as markets digested the broader debate around Fed independence and monetary policy. Gold also rallied, rising 1.3% to hit $4,569 after the video was released. 

What a time to be alive. 😆

A Bitcoin and Gold ETP Launched on the London Stock Exchange 🚀

Speaking of Bitcoin and gold, we also had some news from the UK. 

Earlier this week, 21Shares announced a new ETP that offers physically backed exposure to Bitcoin and gold in a single investment product.

The new ETP launched on the London Stock Exchange under the ticker BOLD.

With this launch, 21Shares is the latest company in the UK to offer Bitcoin exposure through exchange-traded products, giving investors a simplified way to allocate to BTC. 

The goal of the ETP is to offer Bitcoin-like returns with lower volatility. The product has already been tested and launched in Switzerland in 2022.

It looks like the UK is catching up on digital assets and exposure options after lifting a regulatory ban back in October that previously prevented investors from investing in digital asset-exposed products.  

Did the U.S. Sell Seized Bitcoin From the Samourai Lawsuit and Challenge Trump's Executive Order? 🤯

Samourai was a Bitcoin privacy service that offered coinjoining and "labeling" features for on-chain transactions. 

The founding team was highly visible on social media, where they teased authorities that they wouldn't follow regulatory guidelines. 

Both its founders were arrested, pleaded guilty, and were sentenced to five and four years for conspiracy counts related to money transmission and money laundering.

OK, now that we have the ins and outs laid out, let's move to the next interesting part of this story. 

The Samourai wallets held roughly 57.55 BTC at the time of the arrest, which was reported as forfeited as part of the guilty plea.

The Department of Justice may have sold the forfeited Bitcoin stash, which would raise questions about compliance with Executive Order 14233, which President Trump signed last March. The order directs that seized Bitcoin be held as part of a Strategic Bitcoin Reserve rather than routinely sold.

In that EO, he stated clearly that going forward, no amount of seized Bitcoin or digital assets shall be sold from the upcoming Bitcoin reserve. 

Senator Lummis, a prominent voice for Bitcoin in Washington, also commented on the matter, stating that it’s vital not to “squander” these coins. 

So far, there has been no official confirmation from U.S. authorities about those coins, but it’s an interesting story to follow if you’re looking at nation-state Bitcoin adoption.  

Elsewhere in Bitcoin 📖

A quick look at what else has been happening in Bitcoin: 

• Canaan uses a 3 MW mining site to power a greenhouse

• Strategy’s stock is also profiting from the BTC price pump

• Rhode Island introduces a state-income tax exemption for Bitcoin 

• The Iranian currency collapsed overnight, and Bitcoin is the answer

• Coinbase CEO Brian Armstrong seems unhappy with the latest crypto bill

Your fellow stacker in sats, 

Patrick Lowry

PS: Connect with me up on X if you want to hear more of my thoughts on Bitcoin and digital assets.

Disclaimer: The opinions expressed in this newsletter are solely those of the author and do not necessarily represent the views of any associated company. This newsletter is for educational and informational purposes only and should not be construed as investment, financial, or any other professional advice. Investing in cryptocurrencies is highly speculative and carries a significant risk of substantial financial loss, so you must conduct your own thorough research and consult with independent professional advisors before making any decisions.