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cointelegraph.com Mar 25, 2025 15:00

History suggests that digital gold can rush in an economic revolution - Opinion by: Michael Amar, co-founder of Chain of Events and general partner at v3ntureOnce upon a time, in 1848, a man could walk into the wilderness on the brink of poverty and emerge, caked in mud, dust and days-old sweat, a multimillionaire. The discovery of gold in California in the mid-19th century ignited a fuse, causing explosive ripples that transformed the American economy.In 2025, a relatively new resource, less shiny but no less brilliant and scarce, looks set to reshape the global economy and spark another race for accumulation. Only this time, there won’t be pickaxes and pans. There will be ASICs, algorithms and distributed ledger technology. Of course, this refers to Bitcoin (BTC), also known as digital gold.Just as the gold rush spurred on banking, financial systems, lending, trading and changes to monetary policy, history is repeating itself with Bitcoin, digital payments, asset tokenization and crypto-politicians. Laws, regulations and culture changed to accommodate gold. They’re now doing the same for Bitcoin and cryptocurrencies at large.Exploring the historical parallelsThe gold rush created wealth “out of thin air,” and Bitcoin is doing the same. With around $2 trillion in market value, those who adopted early and took the most risk are now millionaires (in fact, over 85,000 are confirmed) and, in some cases, billionaires (there are thought to be 17 of them). From the hundreds of thousands that descended on California, those who struck real gold used their newfound wealth to build railroads, telegraph lines and entire towns. Bitcoin’s early success stories used their financial muscle to stake further claims by developing applications, growing infrastructure businesses and nurturing the industry. Michael Saylor founded MicroStrategy, which had rebranded to Strategy. This business intelligence company holds over $48 billion worth of Bitcoin, while Changpeng Zhao founded the world’s biggest crypto exchange and is worth over $57 billion. Recent: Coinbase, Gemini CEO throws support behind Bitcoin-only US crypto reserveToday’s business analysts and market experts should look into the American gold rush, where they’ll find striking similarities. Just as gold mining once attracted workers and investors, Bitcoin attracts institutions, startups, talent, governments and capital inflows. Gold-backed reserves changed global economics and drove gold demand. Will a US strategic Bitcoin reserve do the same?Men started the gold rush with pickaxes and pans and ended it with hydraulic mining equipment. The earliest Bitcoin users mined with their home computers, whereas now there are enormous energy-efficient Bitcoin mining facilities, cutting-edge cooling apparatus and the Lightning Network. Scalability and efficiency have leaped forward.Broader implications for international financeBeyond instant wealth, infrastructure, monetary policy and economic ripples, there’s monetary sovereignty. Any country that establishes Bitcoin reserves as a hedge against inflation or geopolitical stability takes the future into its own hands. This is identical to gold, which has been used as a reserve for a long time. Since “The Nixon Shock” in 1971, however, the US dollar has decoupled from gold, creating an overdue opportunity for a new resource to fill its large gilded shoes.Monetary sovereignty is also a major driving force for retail adoption, with Bitcoin offering protection against inflation and government policy through economic decentralization.Addressing skepticism from different audiencesWidespread enthusiasm among tech leaders, libertarians, celebrities, businesses and popular political figures has met with years of fear, uncertainty and doubt (FUD) from regulators, skeptics and some of the world’s most prominent investment managers. They say that Bitcoin has no real value, but let it be said that gold is just a shiny, semi-scarce rock.Larry Fink, CEO of BlackRock — the world’s largest investment company with $10 trillion in assets under management — once called Bitcoin “an index of money laundering.” Over the years, he has gone from the messiah of the skeptics to purchasing 2.7% of the global Bitcoin supply and publicly stating his belief that it could reach $700,000 per BTC. “As I became a student of crypto, it was very clear to me that crypto is a currency of fear,” Fink said. “But that’s OK. If you’re frightened of the debasement of your currency or the economic or political stability of your country, you can have an international-based instrument called Bitcoin that can overcome those local fears.” If Fink can change his mind, so can other skeptics. In the run-up to his election win, Trump was quite vocal about a strategic Bitcoin reserve, and has continued to be. Things also seem to be taking shape in terms of individual states moving toward building their own reserves. Gold has had a transformative effect on the world. Bitcoin is now here to relieve it of its duties.Opinion by: Michael Amar, co-founder of Chain of Events and general partner at v3nture. This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

FOMO: 90%
cointelegraph.com Mar 25, 2025 17:19

Bitcoin holds gains amid rising BTC ETF net flows, Coinbase premium and Trump tariff rollback - Bitcoin (BTC) price opened the week with strength, rallying to a daily high at $88,804, which was met by praise from analysts who have identified the $90,000 to $92,000 zone as the key price level to hit in the short term. The market found strength on March 24 after US President Donald Trump suggested that his April 2 “tariff number” announcement could be softer than expected after cars and microchips were removed from the list. According to Ben Yorke, the vice president of ecosystem at WOO, “The White House’s decision to walk back the threat of broad tariffs and to deploy a more targeted approach suggests Trump is wary of an economic backlash.” Proof of the market’s positive response to the tariff news can be seen in the increase in Bitcoin futures open interest, where the general assumption is that traders used leverage to open new margin-long positions. BTC/USDT 1-hour chart. Source: MacroCRG / X The return of the Coinbase Premium — a measure of the percentage difference between BTC price at Coinbase Pro and Binance — and a 7th consecutive day of spot BTC ETF inflows are also signs that spot demand is returning to the market and could signal an improvement in sentiment as Bitcoin’s last few weeks of price action had been defined by selling and the use of perpetual futures to drive price action within the current range. Bitcoin Coinbase premium index. Source: CryptoQuant Data from SoSoValue shows US spot Bitcoin ETF net flows of $84.17 million. Total spot Bitcoin ETF net inflow. Source: SoSoValueIs a rally to $100K back on the cards?While the return of the Coinbase premium and positive net flows to the spot BTC ETFs is a sign of improving sentiment, the question of whether the current bullish momentum has enough energy to push Bitcoin back above $100,000 remains unanswered. Lingling Jiang, a partner at DWF Labs, said, “We’re witnessing the alignment of both structural and narrative factors driving this upward trend of the movement of Bitcoin.”Jiang told Cointelegraph, “At the micro level, we can see a pattern: the resurgence of ETF inflows, the expanding stablecoin market, and breakout patterns across alternative cryptocurrencies collectively signal confidence and perhaps even renewed institutional participation. While market liquidity is strengthening, we notice that volatility remains subdued, and onchain metrics reveal long-term investors accumulating rather than divesting.”Related: Bitcoin sets sights on ‘spoofy’ $90K resistance in new BTC price boost From a technical point of view, Bitcoin continues to trade below the range that had defined its price action from November 2024 until February 2025. While the price trades above the 20-day and 200-day moving average, it remains capped at the descending trendline resistance, which is also aligned with the 50-day moving average ($89,500 - $90,000). BTC/USDT 1-day chart. Source: TradingViewAccording to independent market analyst Scott Melker, Bitcoin’s 4-hour relative strength index indicator has shown a “clear bullish trend, with a series of higher lows and higher highs.” In a March 24 X post, Melker said, “All of this preceded by [an] oversold RSI with bullish divergence at the bottom on daily and below. Which I was screaming about.” This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

FOMO: 88%