Mastercard Announces New Partnership With Polygon While Morgan Stanley Decides To Hold Bitcoin

Intesa Sanpaolo has made history as the first Italian financial institution to invest in Bitcoin (BTC), acquiring 11 BTC for approximately $1.02 million on January 13th, 2025.

This move follows closely on the heels of Bitcoin surpassing the $100,000 threshold in December, with the acquisition coming just over a month after that milestone.

Timing Is Everything

The news broke through a leaked internal email by Niccolò Bardoscia, the Head of Digital Assets Trading at Intesa Sanpaolo. Though Intesa Sanpaolo itself has yet to make any kind of public announcement, the bank did confirm the Bitcoin purchase to the media outlet Wired.

The timing of the investment coincides with a surge in institutional interest in Bitcoin. On January 13th, Bitcoin exchange reserves dropped to a near seven-year low as crypto hedge funds capitalized on the price dip, further fueling expectations of a supply shock.

This phenomenon occurs when strong demand by buyers meets a dwindling supply of BTC, leading to potential price gains.

Buying The Dip
Bitcoin remained below the $100K psychological barrier since January 7th, as institutional investors seized the opportunity to buy BTC at a lower price. While some analysts predict an end to the current correction, BTC remains susceptible to macroeconomic factors in the absence of favorable regulatory news.

According to Bybit, Bitcoin and crypto have become reactive to macroeconomic events at the close of 2024 and into 2025, especially with the Federal Reserve not making as many rate cuts in the new year.

Despite these macroeconomic concerns, some analysts anticipate that Bitcoin could reach a new cycle high above $150,000 by late 2025, spurred by a projected $20 trillion increase in global money supply, which could drive $2 trillion of new investment into BTC.

South Korea has officially initiated discussions to develop the second phase of its cryptocurrency regulatory framework, with plans to draft the legislation by the second half of this year.

The Financial Services Commission (FSC) of South Korea convened a meeting on Wednesday to identify the key areas that the upcoming bill will address, as reported by the news outlet Edaily.

Protecting Investors

During the meeting, FSC Vice Chairman Kim So-Young highlighted that major global economies are speeding up the development of crypto regulations to protect investors and reduce regulatory uncertainty.

The initial crypto regulatory framework came into effect in July of last year, after being passed the year before. This framework focused on investor protection by imposing stricter requirements on exchanges, such as mandating that service providers store at least 80% of customer crypto deposits in cold storage, separate to their own assets.

A Comprehensive Approach

According to the Vice Chair of the FSC, the next phase of regulatory measures should take a thorough and structured approach that addresses service providers, crypto users, and the broader crypto market.

During the meeting, several topics were discussed, including improving transparency in the listing of new cryptocurrencies on exchanges and applying the same disclosure requirements for crypto entities as those for companies in traditional finance.

The meeting also covered stablecoin regulation, with authorities examining global practices regarding reserve asset management for issuers and user redemption rights.

Tom Emmer has been appointed Vice Chair of the Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence.

Collaborating with Bryan Steil and French Hill, Emmer aims to create policies that support the growth of digital assets, opposing restrictive federal regulations and advocating for a fair environment for cryptocurrencies, stablecoins, and CBDCs.

Power To The People

A long-time supporter of crypto in Congress, Emmer introduced the Anti-Surveillance CBDC Act, which passed the House in May 2024, preventing the issuance of CBDCs that could track individual spending, thus protecting privacy and keeping monetary policy in the hands of the people.

Emmer has also often criticized the SEC and proposed reforms to limit what the agency and its Chairman, Gary Gensler, were allowed to do, especially since Gensler has been anti-crypto since the beginning, according to Tom.

Key Appointments

As the inauguration of President Donald Trump approaches, the crypto industry expects swift pro-crypto policies to be executed, with key appointments including Elon Musk as head of the Department of Government Efficiency (D.O.G.E.), and Paul Atkins as SEC Chair.

Other notable appointments include David Sacks as White House Advisor on Crypto and AI, Bo Hines leading the Presidential Advisory Council on Digital Assets, and Sriram Krishnan as Senior AI Policy Advisor. With Emmer at the helm, the subcommittee is poised to play a key role in shaping the future of U.S. crypto and AI policy.

AI-driven tokens have surged after a Franklin Templeton report predicted that AI agents will transform content creation on social media.

Still A Ways To Go

The report, released on January 14th, envisions AI agents launching brands, products, and content, much like human influencers, driving significant economic value across industries.

AI agents are systems capable of autonomous decision-making and goal-directed behavior. However, Franklin Templeton noted that they are still in early development stages with limited utility.

Market Reacts

AI researcher, s4mmy, commented that crypto allows AI agents full control over finances, and predicted that evolving on-chain agentic solutions will drive the next crypto cycle. OpenAI CEO Sam Altman also predicted that AI agents could impact company productivity by 2025.

In response, AI tokens like Virtuals Protocol (VIRTUAL) and ai16z (AI16Z) have surged, with VIRTUAL up over 8% and ai16z rising 20%. Other AI-related tokens, including Near Protocol (NEAR), Internet Computer (ICP), and Freysa AI (FAI), have also seen notable gains.

Sygnum is expanding into new markets after raising $58 million in an oversubscribed strategic growth round, bringing its valuation to over $1 billion.

Global Expansion

The funds will help Sygnum grow its presence in the European Union, the European Economic Area, and Hong Kong, while developing Bitcoin-focused products and pursuing acquisitions. Fulgur Ventures, a key investor known for supporting Blockstream, was involved in the funding round, however Sygnum will maintain majority ownership.

Room For Improvement

The company saw its trading volume surge by over 1,000% in 2024, driven by partnerships with Swiss state-owned bank PostFinance and more than 20 other banks. Sygnum is also working with AsiaNext and Hidden Road to expand its 24/7 multi-asset settlement network, Sygnum Connect.

Despite its success, CEO Mathias Imbach expressed concern that Switzerland is losing its competitive edge as a crypto hub and emphasized the need for continued innovation. Founded in 2017, Sygnum holds licenses in Switzerland and Singapore and manages over $5 billion in client assets.

The ETF Store President, Nate Geraci, predicts 2025 will be a transformative year for crypto ETFs, with at least 50 new crypto-related ETFs launching.

These include covered call ETFs, Bitcoin-denominated equity ETFs, and Bitcoin bond ETFs. Geraci also expects Bitcoin (BTC) spot ETFs to surpass gold ETFs in asset size, signaling the growing prominence of digital assets in mainstream investments.

Paving The Way Forward

While Geraci anticipates approval for spot ETFs tied to SOL and XRP, regulatory challenges may delay their debut. Analysts Eric Balchunas and James Seyffart believe Litecoin and Hedera have a better chance of SEC approval, as they are not classified as securities like Solana and XRP.

Concurrently, Ethereum (ETH) will have a much bigger role going forward, with Geraci predicting approval for spot Ether ETF options trading in 2025, providing new ways for investors to hedge or speculate. Additionally, both Bitcoin and Ethereum ETFs are expected to adopt in-kind redemption processes to improve liquidity and efficiency.

The ETF Race Is On

The market will also see crypto index ETFs by Bitwise and Grayscale, broadening access to crypto-related investments. Geraci highlights the potential of the Bitwise Bitcoin Standard Corporations ETF, which he believes could quickly reach over $1 billion in assets.

Meanwhile, Vanguard, traditionally focused on equities and bonds, is also expected to enter the crypto ETF market, reflecting a wider trend of traditional firms embracing digital assets.

A proposed export restriction on AI chips by the outgoing Biden administration has sparked backlash by the tech industry, with concerns that it could stifle innovation and diminish U.S. leadership in the sector.

The restrictions will enter a 120-day comment period before being decided by the incoming Trump administration.

A Misguided Approach

On January 13th, the White House unveiled a plan that would impose caps and licensing restrictions on semiconductor sales to all but 18 allied nations. Nvidia criticized the framework as misguided, arguing it would hinder innovation and weaken overall competitiveness.

The proposal sets import caps of up to 50,000 semiconductors per country, with government-to-government deals potentially raising the cap to 100,000. Some institutions could purchase up to 320,000 microchips over two years, with small orders not requiring a license.

Mixed Reactions

Daniel Castro warned that pressuring nations to choose between the U.S. and China could alienate key allies. He also noted that foreign competitors could bypass the regulatory burdens faced by U.S. firms.

John Neuffer of the Semiconductor Industry Association expressed concern over the rushed policy, fearing it could harm U.S. economic and technological standing. On the other hand, U.S. Commerce Secretary Gina Raimondo supported the move, emphasizing that it would protect national security while maintaining technological leadership.

Charles Hoskinson has confirmed ongoing talks with Ripple about integrating the Ripple USD (RLUSD) stablecoin onto the Cardano blockchain.

Integration Details
Hoskinson revealed that his team is exploring the feasibility of adding RLUSD to Cardano (ADA), following past criticism over missed opportunities to adopt popular stablecoins like USDC.

The RLUSD stablecoin, launched last month, has already gained traction with listings on exchanges like Bitstamp and Bullish. Ripple President Monica Long has hinted at more exchange listings to come.

Community Reactions
The announcement has sparked excitement among both Cardano and Ripple communities, as stablecoins are crucial in DeFi, offering stability during market volatility. Integrating RLUSD could enhance Cardano significantly, attract new users, and increase competitiveness. However, the market response has been negative, with ADA dropping over 9% in the last 24 hours.

Regardless, Hoskinson praised the RLUSD team and stressed the importance of building a solid stablecoin ecosystem on Cardano, which already includes USDM and Djed. If successful, the RLUSD integration could strengthen Cardano while broadening its user base.

Meta shareholders have suggested allocating part of its $72 billion in cash reserves to Bitcoin (BTC), citing concerns over inflation, while MicroStrategy, led by co-founder Michael Saylor, has aggressively pursued Bitcoin despite mixed reactions by the financial community.

Long Term Viability

As of January 12th, MicroStrategy holds 447,470 BTC, valued at around $42.4 billion, following a recent purchase of 1,070 BTC. However, the company saw its stock fall by about 40% compared to its peak in November, reflecting broader market downturns.

Meanwhile, Saylor remains steadfast in his belief that Bitcoin can serve as a superior long-term store of value, urging other companies to adopt it as a treasury asset. While some view this strategy as viable, critics like finance professor David Krause warn that it could lead to significant losses for the company, even raising the possibility of bankruptcy if prices fall sharply.

21/21 Plan

Despite these concerns, Saylor launched the 21/21 plan to raise $42 billion for additional Bitcoin acquisitions through equity and debt offerings. This approach underscores a heavy reliance on both markets for liquidity.

As the company presses forward, its Bitcoin strategy could become a test case for corporate adoption of the flagship cryptocurrency, with the outcome shaping the future of corporate treasury management and raising questions about the risks of over-concentrating in a volatile asset.

U.K. Prime Minister Keir Starmer has unveiled a plan to integrate AI into the local infrastructure with substantial investments by several tech firms and the full implementation of a 50-point action plan.

Transforming The Economy

Announced on January 13th, the plan includes recommendations by Matt Clifford, chair of the U.K. Advanced Research and Invention Agency (ARIA), such as establishing AI Growth Zones to fast-track data center approvals.

Starmer highlighted that AI will transform the economy, and the strategy aims to ensure its benefits are felt nationwide. Key proposals include building a supercomputer capable of playing chess 500,000 times per second and creating a National Data Library for AI model training.

The Race Is On

The United Kingdom is trying to remain competitive in the global AI race, especially against the U.S. and China. Neighboring Ireland has paused new data centers due to energy concerns, prompting the U.K. to form an AI Energy Council to work with energy companies.

Many tech companies, including Vantage Data Centres and Microsoft, have pledged a combined $17 billion to build AI infrastructure. Starmer has called on all cabinet members to prioritize AI adoption, with the goal of spurring rapid progress.

The market is down again, but a new narrative is emerging, AI agents. This is a rapidly growing sector which is expected to reach a $200 billion market cap by 2030.

Crypto AI agents are autonomous, AI-powered systems designed to perform specific tasks within specific ecosystems. These agents use algorithms such as LLMs or ML models to analyze data, make decisions, and execute actions with minimal or no human intervention.

What To Look For

To find the next 100x opportunity, it is key to focus on AI agent platforms, which serve as launchpads for developers to create these agents.

Popular platforms include Virtuals on Ethereum and Base, ai16z and Griffain on Solana, and Sentient AI on Sui. To identify high-potential agents, go to the Prototype section, sort by Created At, and look for agents with strong utility, fast execution speed, and solid on-chain data.

Investing In Success

Unlike AI chatbots that follow human-made scripts, AI agents are completely independant, capable of analyzing data and making decisions to achieve set goals, like predicting crypto market trends. 

Successful agents often show quick bonding times, holder growth (at least 1,000 holders per $1M market cap), and consistent progress. Experts believe that by focusing on these traits, traders will be well-positioned to find valuable AI agents in 2025 and beyond.

Shiba Inu (SHIB) has formed a head-and-shoulders pattern on its daily chart, signaling a potential bearish reversal.

Weak Market Momentum

The pattern consists of three peaks, with the middle peak, or head, being higher than the two shoulders, and the neckline acting as a key support level, currently around $0.00002100.

A drop below the key support level could trigger further declines, with an estimated price target around $0.00001750, aligning with the 200 EMA support. Despite some minor bullish attempts, low trading volumes and a neutral RSI suggest weak market momentum.

A Critical Week

Meanwhile, the SHIB community has seen a 300% increase in token burns, and large holders, or whales, control over 565 trillion SHIB tokens, adding uncertainty to the price outlook. Many investors may cash out their SHIB due to this uncertainty, as it all depends on how SHIB performs this week.

If SHIB remains above the neckline and regains upward momentum, it could target resistance at $0.00002250 and $0.00002500, but a break below the neckline could push the price lower. Traders should monitor the $0.00002100 level closely for any signs of a breakout or breakdown.