dYdX jumps 30% on Trump’s Czar

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dYdX jumps 30% after Trump picks David Sacks as AI and Crypto Czar

Key points:

• President-elect Donald Trump appointed David Sacks, a former PayPal COO and venture capitalist, as the White House AI and Crypto Czar.

• Following the announcement, dYdX, a token from Sacks’ Craft Ventures portfolio, surged by 30%, reflecting market optimism.

News - In a bold move to solidify America’s leadership in emerging technologies, President-elect Donald Trump announced the appointment of David Sacks as AI and Crypto Czar in his administration. The announcement, made via TruthSocial on Thursday night, emphasizes the importance of Artificial Intelligence (AI) and cryptocurrency to U.S. competitiveness.

"David will guide policy for the Administration in Artificial Intelligence and Cryptocurrency, two areas critical to the future of American competitiveness. David will focus on making America the clear global leader in both areas," Trump posted. 

Sacks, a former PayPal Chief Operating Officer and member of the "PayPal Mafia", is a prominent venture capitalist and co-founder of Craft Ventures, which has invested in notable crypto companies like BitGo, Bitwise, and dYdX. His new role includes developing a legal framework for the crypto industry, addressing regulatory clarity that the sector has long demanded.

Market reaction: dYdX token rallies - The announcement caused a ripple effect in the crypto market, with the dYdX token surging over 30% shortly after the news broke. The decentralized exchange token’s rally reflects investor optimism, as Sacks’ Craft Ventures was an early backer in dYdX’s Series A funding round, which raised $10 million.

Analysts believe Sacks’ involvement in shaping U.S. crypto policy could bolster confidence in blockchain projects, particularly those tied to his portfolio.

Sacks’ vision and broader implications - Trump highlighted Sacks’ mandate to “safeguard free speech online and steer us away from Big Tech bias and censorship.” Additionally, Sacks will focus on creating a legal framework that ensures regulatory clarity for cryptocurrencies, potentially paving the way for the U.S. to become a global hub for blockchain innovation.

Sacks’ appointment follows Trump’s selection of Paul Atkins, a former SEC Commissioner and pro-crypto advocate, to lead the Securities and Exchange Commission (SEC). These moves signal a pro-crypto stance from the upcoming administration, with analysts predicting favorable conditions for blockchain and digital assets.

What’s next? - With David Sacks steering crypto policy and Trump’s administration doubling down on blockchain and AI, the market is watching closely for further announcements. Investors and innovators alike are hopeful this marks a new era of regulatory clarity and growth for the U.S. crypto sector.

Bitcoin struggles to hold $100K amid high-risk market signals

Key points:

• Bitcoin reached an all-time high of $104,087 but is now consolidating near the $100,000 mark, struggling to sustain momentum.

• The NUPL metric indicated extreme unrealized profit levels, often signaling potential market corrections.

News - Bitcoin’s price recently surged to a record-breaking $104,087, marking a new all-time high. However, the cryptocurrency has since entered a consolidation phase, with its ability to hold above $100,000 now in question.

Investor sentiment has been cautiously optimistic, but the market has shown signs of overheating. The Net Unrealized Profit/Loss (NUPL) metric has reached 0.59, a level typically associated with market euphoria and increased risk of corrections.

NUPL signals overheating market - The NUPL metric, which tracks the ratio of unrealized profits to total market value, has exceeded its 4-year average by one standard deviation. Historically, such levels precede significant corrections as profit-taking intensifies.

On-chain data showed that daily realized profits—the actual gains from coins sold—have dropped sharply. After peaking at $10.5 billion daily during Bitcoin’s rise to $100,000, realized profits have declined by 76% to around $2.5 billion per day, indicating a cooling market.

“This sharp reduction hints towards a marked cooldown, suggesting the profit-taking may have been more impulsive than sustained,” noted Glassnode, an on-chain analytics platform.

Price outlook: Volatility ahead - Bitcoin’s price remains range-bound between $100,000 and $89,800, with analysts forecasting continued volatility.

• If Bitcoin breaks above $100,000, it could push toward $105,000 in the short term.

• Failing to hold the $89,800 support level might result in a drop to $85,000, or even $75,000, signaling prolonged consolidation.

Bitcoin’s ability to establish $100,000 as a support level will be a critical indicator of market direction. While overall sentiment remains bullish, the high NUPL suggests the risk of a near-term correction is significant.

US Bitcoin ETFs surpass Satoshi’s BTC holdings

Key points:

• US Bitcoin ETFs now hold over 1.1 million BTC, exceeding the estimated Bitcoin holdings of the cryptocurrency’s anonymous creator, Satoshi Nakamoto.

• The milestone comes less than a year after the launch of spot Bitcoin ETFs in January 2024.

News - United States spot Bitcoin ETFs have collectively achieved a significant milestone, surpassing the estimated Bitcoin holdings of Satoshi Nakamoto, Bitcoin’s anonymous creator. According to Bloomberg ETF analyst Eric Balchunas, spot Bitcoin ETFs in the US now hold 1,103,965 BTC, as of December 5.

“The US spot ETFs have just passed Satoshi in total bitcoin held, now hold more than 1.1m, more than anyone in the world, and they're not even a year old yet, literally babies still,” Balchunas noted in a December 6 X post.

The ETF holdings now outpace major entities like Binance, by 42%, and MicroStrategy, by 63%, highlighting the growing influence of institutional Bitcoin investments.

Satoshi Nakamoto’s legacy - Satoshi Nakamoto is credited with creating Bitcoin and initiating the first BTC transaction in January 2009. His estimated 1.1 million BTC holdings account for around 5.2% of Bitcoin’s total supply of 21 million coins.

While Nakamoto’s identity remains a mystery, speculation about his legacy continues. In a recent interview with CNBC, Mike Novogratz, CEO of Galaxy Digital, expressed confidence that Nakamoto is no longer alive. “If Satoshi was alive — cause I don’t think he is — I’m sure that he’d have a big smile on his face,” Novogratz remarked.

Institutional Bitcoin surge - Since the launch of spot Bitcoin ETFs in the US, institutional adoption has fueled record-breaking inflows. The ETFs now collectively hold more BTC than any individual or institution globally, signaling a seismic shift in the Bitcoin ecosystem.

Observers view this milestone as a testament to Bitcoin's growing mainstream acceptance. As ETFs continue to attract capital, their role in shaping the Bitcoin market is expected to expand.

SEC to reject spot Solana ETFs amid regulatory stalemate

Key points:

• The SEC has reportedly notified at least two issuers of its intent to reject their applications for spot Solana ETFs.

• The regulatory agency’s decision may delay approvals until the next administration under Paul Atkins, Trump’s SEC nominee.

News - The United States Securities and Exchange Commission (SEC) is set to reject applications for spot Solana ETFs, according to Fox News reporter Eleanor Terrett. At least two of the five issuers pursuing approval have received notifications of the likely rejection, as reported on December 6.

“The SEC won’t entertain any new crypto ETFs under the current administration,” Terrett stated, suggesting broader resistance from the agency toward crypto-based products during Chair Gary Gensler’s tenure.

Delayed but not dismissed - Asset managers, including VanEck, 21Shares, Canary Capital, Bitwise, and Grayscale, have all filed 19b-4 applications to launch Solana ETFs. The filing process outlines product structure and compliance but hinges on SEC approval.

Donald Trump’s presidential victory has prompted optimism for the crypto industry, with Paul Atkins, a known crypto policy advocate, nominated to lead the SEC starting in January 2025. Observers anticipate a potential shift in crypto regulation once the new leadership takes over.

Will spot Solana ETFsfollow Bitcoin’s path? - Historical precedent suggests that spot Solana ETFs may follow the timeline of Bitcoin ETF approvals. The SEC could greenlight multiple ETFs on the same day, mirroring its simultaneous launch of 11 Bitcoin ETFs earlier this year.

“The SEC won’t approve just one or a couple and not the others,” Terrett noted, highlighting a coordinated approval strategy seen in past regulatory decisions.

What’s next? - With Trump’s administration taking office in January 2025, many industry insiders expect greater regulatory clarity for crypto ETFs. The race for crypto-based financial products continues, with firms preparing for a more favorable environment under the new SEC leadership.

More stories from the crypto ecosystem

• XRP sees $288 mln outflow – Sign of a price surge?

• Bitcoin: Why a pullback could be looming after the latest $100,000 milestone

• What does Ethereum’s latest revisit to key historical levels mean for you?

• Bitcoin: Assessing the role of U.S. institutions in BTC’s ATH surge

• All about SUI’s new ATH of $4.43 and the factors that fueled the surge

Crypto scams uncovered

• BitConnect promised sky-high returns through a lending program that turned out to be a massive Ponzi scheme. It collapsed in 2018, and investors lost around $1 billion. Despite the crash, its promoters continued to push similar schemes under different names.

• PlusToken marketed itself as a high-yield crypto wallet but turned out to be a massive Ponzi scheme, swindling over $2.9 billion from investors. The founders vanished in 2019, leaving behind a trail of empty promises and stolen funds.

• WoToken was a Ponzi scheme disguised as a cryptocurrency wallet offering high returns. It defrauded investors of over $1 billion before its operators were arrested in 2018, with many investors left with huge losses.

Top 3 coins of the day

Bitget Token (BGB)

Key points:

• At press time, BGB was trading at $2.31.

• Increasing by approximately 20.44% over the last 24 hours, it was the biggest gainer, as per CoinMarketCap.

What you should know:

The daily chart indicated a strong bullish trend for BGB. The Bollinger Bands expanded significantly, reflecting heightened price volatility, with the price breaking above the upper band, signaling strong bullish momentum and overbought conditions. Moreover, the Chaikin Money Flow (CMF) showed a positive value of 0.29, suggesting strong buying pressure. Trading volume surged sharply, reinforcing investor interest. Immediate resistance is seen near $2.42, aligning with the intraday high, while support lies at $1.91, corresponding to the intraday low. A sustained close above the resistance could pave the way for further upward movement, while a breach below support might signal a potential retracement.

Worldcoin (WLD)

Key points:

• At press time, WLD was trading at $3.85.

• Increasing by approximately 3.79% over the last 24 hours, it is one of the top trending cryptocurrencies, according to CoinMarketCap.

What you should know:

A bullish trend was revealed on the daily chart for WLD. The Parabolic SAR dots positioned below the price action confirmed an ongoing upward momentum. Moreover, the Directional Movement Index (DMI) supported this, with the +DI line at 37.75 staying above the -DI line at 9.55, accompanied by a rising Average Directional Index (ADX) of 33.13, indicating a strong trend. Volume also showed an uptick, reflecting increasing investor interest. Immediate resistance is likely at $4.19, aligning with the intraday high, while support can be found near $3.62, the intraday low. Traders should monitor these levels closely. Breaking above $4.19 could confirm further bullishness, while a decline below $3.62 might signal potential consolidation or a reversal.

VeChain (VET)

Key points:

• At press time, VET was trading at $0.062.

• Decreasing by approximately 3.53% over the last 24 hours, it was the biggest loser, as per CoinMarketCap.

What you should know:

On the daily timeframe, a bearish correction was noted for VET following a significant rally over the past week. The price was trading below the recent intraday high of $0.066 but remained above the SMA 9 ($0.056), indicating that the uptrend might not be fully exhausted. The RSI was at 66.86, moving out of the overbought zone, which could signal a potential consolidation or further downside. Volume declined slightly from the recent peak, suggesting reduced buying momentum. Immediate support lies around $0.056, corresponding to the SMA level, while resistance is near $0.070. Traders should monitor these levels for potential breakouts or further declines.