????Trump Announces U.S. Crypto Reserve
“Thinking small is a self-fulfilling prophecy.” Jeff Bezos
Ramadan Kareem, and welcome to the 146th edition of CoinMENA’s weekly newsletter, Kalam Crypto!
This week, Trump unveiled plans for a U.S. Crypto Reserve, initially boosting markets, though gains were short-lived as new tariffs on the EU and China triggered a broad selloff, impacting both digital assets and stocks. Meanwhile, the IMF approved a loan to El Salvador in exchange for scaling back some Bitcoin regulations, and CoinMENA’s content partner, Onramp, launched a Bitcoin-backed lending product. We also take a closer look at Bitcoin’s recent volatility and how it stacks up against previous cycles. All this and more in this week’s Kalam Crypto!
Global News ??
Trump announces U.S. Crypto Reserve: President Donald Trump recently unveiled plans to create a U.S. Crypto Strategic Reserve, featuring Bitcoin, Ethereum, XRP, Solana, and Cardano. This initiative aims to strengthen the U.S. stance in the global digital asset market, sparking a notable rise in cryptocurrency prices. While industry experts see it as a potential driver for regulatory clarity and Web3 innovation, questions linger about its implementation and possible conflicts of interest. Notably, Coinbase CEO Brian Armstrong and other leaders argue that the inclusion of assets like XRP, SOL, and ADA is questionable. They contend that a strategic reserve should focus on neutral, scarce, and issuer-less assets, such as gold or, in the digital realm, Bitcoin. Armstrong emphasized, “Just Bitcoin would probably be the best option — simplest, and clear story as successor to gold”
The IMF board approved a $1.4 billion loan to El Salvador with further Bitcoin restrictions. The International Monetary Fund (IMF) has approved a $1.4 billion loan to El Salvador, contingent on the government imposing further restrictions on Bitcoin-related activities, including transactions and purchases. The loan includes an immediate disbursement of $113 million and is expected to attract additional multilateral support, totaling $3.5 billion over the next 40 months. Recent amendments to El Salvador's Bitcoin Law have removed Bitcoin's status as legal currency, making its acceptance by businesses voluntary and prohibiting its use for taxes or government debts. Despite these changes, El Salvador's administration remains committed to Bitcoin, reaffirming the nation's identity as a 'Bitcoin country.' El Salvador continues to hold a significant stake in Bitcoin, with over 6,090 BTC valued at more than $500 million.
Onramp and Arch have launched a bitcoin-backed lending service: CoinMENA’s content partners Onramp Bitcoin launched a Bitcoin-backed lending service, allowing borrowers to use Bitcoin as collateral for cash or stablecoins without triggering taxable events or selling their holdings. This reflects the market's clear demand for such solutions, especially after the SEC’s January 23, 2025, decision to rescind SAB 121, enabling financial institutions to custody digital assets. Expect more institutions to offer Bitcoin-backed loans. Borrowers benefit from fixed terms, no early repayment penalties, and a revolving credit line approach, unlocking liquidity while preserving Bitcoin’s potential upside.
When in Doubt, Zoom Out ??
Bitcoin's recent volatility saw a significant price drop from around $100K to under $80K, followed by a rebound above $90K. Various factors, such as concerns over Trump’s tariffs, rising inflation expectations, and the Bybit hack, were cited as potential causes for the decline, though it was likely a combination of these elements. Bitcoin's volatility is a well-documented feature, with historical data from past bull markets showing frequent and substantial price swings. For instance, during the 2017 and 2021 bull markets, Bitcoin experienced multiple drawdowns of over 10%, underscoring that such corrections are part of its behavior. On-chain metrics indicate that much of the recent selling came from short-term holders, possibly those who entered near the peak without a full understanding of their investment. This highlights the importance of adopting a long-term perspective, with a recommended holding period of at least four years, emphasizing that success in Bitcoin investing is more about time in the market than timing the market.
Tweet Of The Week ??
CoinMENA News ???
“Your Future, Your Choice” – Bold New Bitcoin Ads: We’re excited to share the launch of our new campaign, “Your Future, Your Choice,” featuring two short films that tackle the financial challenges so many of us face: rising living costs and the struggle to grow savings.
These films aren’t just ads, they’re a call to rethink how we approach saving and investing in today’s world.
Quiz Corner ??
Last week’s question, what percentage of Abu Dhabi’s Sovereign Wealth Fund holdings are in Bitcoin? Correct answer is A) less than 1%
This week’s question, which assets does President Trump want to include in the U.S. Crypto Reserve?
See the answer in next week’s newsletter. Or check out our learning platform https://university.coinmena.com/