Bitcoin reserves, $100k stall & Hong Kong’s crypto play 💸

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Over $552 million in stolen cryptocurrency was laundered through Tornado Cash in 2024, with 60% of ETH deposits linked to high-risk sources. Major contributors include hacks like WazirX and Heco Bridge, fueling scrutiny of the mixing service.

News 📰

🛡️ Uniswap offers $15.5M bug bounty to secure v4 protocol: The DeFi giant launches the largest-ever bug bounty to fortify its latest protocol, aiming to protect billions in daily trading volume.

👀 Russia introduces crypto taxes as Bitcoin hits ruble highs: New rules impose up to 15% tax on crypto sales and exempt miners from VAT, while Bitcoin trades at a record 11M rubles.

💰 Trump’s crypto project gets $30M from Justin Sun: The Tron founder becomes the largest investor in Trump’s World Liberty Financial, backing its push for decentralized finance amid offshore token sales.

🚨 $3B XT Exchange hit by $1.7M hack: XT temporarily halts withdrawals after PeckShield uncovers a breach, with stolen funds converted into 461 ETH.

⚖️ Ex-Binance exec sues over bribery and dismissal claims: A former employee alleges she was fired for whistleblowing on a colleague’s bribe, while Binance cites poor performance as the reason.

Crypto leaders push Trump for national Bitcoin reserve

Top crypto executives are urging President-elect Donald Trump to create a federal bitcoin reserve, a move they argue could position the U.S. as a global leader in digital assets. Trump has expressed interest in the idea, signaling a significant policy shift that could intertwine cryptocurrency with national finances.

Why it matters: A federal bitcoin reserve could boost crypto's legitimacy and potentially reshape global finance. Advocates argue the move could help reduce national debt, but critics warn of risks tied to crypto's volatile nature.

The proposal:

• Crypto leaders envision the government acquiring billions in bitcoin, banking on its value soaring over decades.

• Senator Cynthia Lummis has proposed a bill to purchase up to 1 million bitcoins, funded by revaluing federal gold reserves.

Risks:

• Bitcoin's price volatility could jeopardize taxpayer funds, especially if purchased at peak prices.

• Economists caution that funding such a reserve could worsen national debt and inflation.

What they’re saying:

• “Bitcoin is manifest destiny for the United States,” said Michael Saylor of MicroStrategy, likening the reserve to the Louisiana Purchase.

• Critics like Moody’s economist Mark Zandi counter: “There’s no discernible logic to it.”

Big picture: Trump’s pro-crypto stance has already fueled bitcoin's rally, pushing it to $92,000. A federal bitcoin reserve could solidify the U.S.’s role in the crypto economy—but not without raising serious fiscal and policy questions.

Why Bitcoin stalls at $100k

Bitcoin’s post-election rally pushed it tantalizingly close to the $100,000 mark, but the momentum has slowed. Traders, long fixated on this milestone, are watching closely as the cryptocurrency teeters just below its most anticipated threshold.

Why it matters: $100,000 isn’t just a number; it’s a psychological finish line for investors, representing a triumph for the crypto community—and a temptation to cash out.

The dynamics:

• Profit-taking pressure: As Bitcoin approaches $100K, long-term holders are cashing in. Nearly all BTC holders are in the green, making the temptation to sell irresistible for many.

• Clustered sell orders: Big round numbers like $100K attract sell orders. For example, OKX has a standing order to sell 1,000 BTC at $100K, and many similar orders likely loom.

• Market psychology: Traders are playing chicken, trying to sell close to the mark without sparking a sell-off that could drop prices before they cash out.

By the numbers:

• Glassnode data shows 507,000 dormant BTC started moving as the price neared $100K—echoing the 934,000 BTC that awoke during March’s rally to a previous high.

• These movements highlight how traders gravitate toward historically significant price levels.

Flashback: Bitcoiners have been chasing $100K for years, even adopting the “laser eyes” meme on social media during the 2021 rally. That attempt fell short at $69K, making the current rally feel like unfinished business.

The bottom line: Bitcoin’s hesitation at $100K is a mix of strategic selling and deep-seated market psychology. Whether it breaks through or stumbles again, the milestone remains a symbol of crypto’s unrelenting hype—and the schadenfreude that comes with it.

Hong Kong’s crypto tax breaks target hedge funds and billionaires

Hong Kong plans to exempt hedge funds, private equity firms, and billionaire family offices from taxes on crypto and other investments, aiming to compete with Singapore and Switzerland as a top offshore finance hub.

Why it matters: The move aligns with Hong Kong’s push to become a global crypto leader, leveraging Bitcoin’s recent surge post-Trump victory to attract high-net-worth investors.

Details: The proposal includes tax exemptions for crypto, private credit, overseas property, and carbon credits, with a six-week consultation underway. Hong Kong has also promoted "open-ended fund companies," hosting over 450 structures to date.

The competition: Singapore’s tighter money-laundering controls may give Hong Kong an edge, as wealthy Chinese individuals seek alternatives for their investment vehicles amid mainland crackdowns.

Big picture: By removing tax barriers, Hong Kong is positioning itself as a go-to hub for crypto wealth, just as market momentum surges.

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