The Basics of Cryptocurrency: An Introduction to Bitcoin and Other Digital Currencies

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.

Ouro Medicines raised $120M in Series A Funding. Ouro Medicines is dedicated to developing immune reset therapeutics for people living with chronic immune-mediated diseases.

Numab Therapeutics AG secured $54.5M in Series C Funding. Numab is developing multi-specific antibody-based immunotherapies to treat inflammation and cancer related illnesses.

nsave acquired $18M in Series A Funding. nsave provides trusted accounts to people in countries with high inflation and stringent banking regulations. The nsave team has worked for Morgan Stanley, Revolut, BNY Melon, Robinhood, and Microsoft.

Windward Bio secured $200M in Series A Funding. Windward Bio is a clinical-stage, drug development company committed to improving outcomes for people living with advanced immunological diseases with an initial focus on severe respiratory conditions.

Nephron Pharmaceuticals obtained $350M in Debt Financing Funding. Nephron Pharmaceuticals provides patients reliable access to affordable, high-quality medications through their innovative approach to sterile manufacturing.

DDN raised $300M in Private Equity Funding. DDN is the leading data intelligence platform in the world that reliably accelerates massive data sets across AI and HPC workloads. 

Compass Pathways acquired $150M in Post-IPO Equity Funding. Compass Pathways is a biotechnology company dedicated to accelerating patient access to evidence-based innovation in mental health.

Innovaccer secured $275M in Series F Funding. Innovaccer works with healthcare organizations to supercharge their existing software with true intelligence.

Oxford Cancer Analytics raised $11M in Series A Funding. Oxford Cancer Analytics Ltd (OXcan) is on a mission to enable curative cancer treatments through early detection. Its machine learning platform enables minimally invasive and inexpensive cancer screening in high risk populations through analyzing cancer materials shed into the blood.

Grand Games obtained $30M in Series A Funding. Based in Istanbul, Grand Games is dedicated to shaping the future of gaming by creating genre defining games played by millions worldwide.

Bitcoin (BTC) experienced a turbulent end to the week, with its price initially dipping to around $91,000, followed by a sharp rise to $96,000 before stabilizing closer to the middle of that range. Meanwhile, altcoins continue to face challenges, with SOL, ADA, and AVAX all posting declines of around 4% on the day.

Maintaining Momentum
It was an eventful week for Bitcoin, marked by significant price fluctuations. The week began on a high note, as the recent MicroStrategy purchase propelled the flagship cryptocurrency above $100,000 for the first time this year, and it even surpassed $102,000 by Tuesday morning.

However, the momentum shifted, and BTC saw a steep drop later that day. By Wednesday, the price had fallen to $96,000, followed by a further decline on Thursday to $91,200, marking its lowest point in over a month.

At this juncture, the bulls stepped in and began pushing the price back up. Although volatility remained high with several ups and downs, BTC ultimately regained some ground, reaching $96,000 again. However, it struggled to maintain this level and has since dropped slightly, now trading at around $94,000.

Altcoins Struggle
The total market cap for Bitcoin has risen to just below $1.87 trillion according to CoinGecko, with its dominance over altcoins climbing to 54.5%. Altcoins are also facing downward pressure. Ethereum dropped below $3,200 on Thursday, and despite a brief recovery, it is now hovering near that level again after a 2.3% daily loss. XRP is one of the few altcoins showing small gains today.

However, the majority of altcoins are struggling, with SOL, ADA, SUI, AVAX, and LINK all experiencing losses of up to 4%. SOL has fallen below $190, and ADA is now priced just above $0.90. Additional losses are seen in OM, ICP, and RNDR among the larger-cap altcoins.

The overall cryptocurrency market cap has also weakened, dropping to $3.43 trillion on CoinGecko.

Other Markets

The first trading day of 2025 at the NYSE and NASDAQ saw the U.S. stock market facing several challenges as earnings season began. Gary Gensler warned against weakening safeguards for retail traders, while Chinese stocks struggled with their worst start to the year since 2016. Growing concerns over Payment-in-Kind debt attracted additional regulatory scrutiny.

Elsewhere, Mali will receive $1.2 billion through miners, while Enbridge plans a pipeline expansion amid a drilling boom. Gazprom continues oil operations in Serbia, and Denmark has a new thriving shipping terminal.

Dogecoin (DOGE) recently attempted a price recovery but hit a major obstacle, struggling to break above the 4-hour Simple Moving Average (SMA), which has acted as a strong resistance.

Despite initial signs of a rebound, DOGE failed to surpass this level, pointing to fragile bullish momentum and increasing bearish pressure, making the meme coin vulnerable.

Price Action And RSI Analysis

A move above the 4-hour SMA could signal a shift toward positive sentiment and higher resistance levels. However, continued rejection may intensify selling, pushing DOGE toward lower support.

The price movement for DOGE shows difficulty breaking through the 4-hour SMA, suggesting weakening upward momentum. The RSI remains below 50%, confirming bearish pressure. As long as the RSI stays under 50%, downward momentum may continue.

Support And Resistance Levels

DOGE is testing the $0.3066 support level. A drop below this could push the price toward $0.2677. On the upside, breaking the 4-hour SMA could lead to resistance at $0.3563, with further gains targeting the $0.40 zone.

As of the time of this writing, DOGE is trading around $0.34, according to CoinGecko.

The Trump administration is set to create the first-ever Senate crypto subcommittee, led by pro-crypto Senator Cynthia Lummis. The U.S. Senate Banking Committee, chaired by Senator Tim Scott, will establish this subcommittee, modeled after the House Financial Services Committee.

A Sensible Choice

Lummis, known for her support of cryptocurrency, is expected to chair, with members chosen soon. This move is a significant step in shaping U.S. crypto regulation, as the subcommittee aims to create clear regulations focusing on consumer protection and innovation.

Often praised for her expertise, Lummis is seen as the right leader for the job. Many crypto companies are backing the incoming administration, with firms like Circle and Ripple contributing millions to Trump and his new administration which also consists of notable names like Elon Musk.

Supporting Trump

Lummis has advocated for several pro-crypto policies, including the establishment of a strategic Bitcoin (BTC) reserve. Her support is critical to Trump and what he aspires to accomplish during his second term in office.

With key appointments, including David Sacks as White House Crypto Czar, and potential changes at the U.S. SEC, the creation of the Senate subcommittee signals a promising future for the U.S. crypto landscape in 2025.

Cardano (ADA) and FC Barcelona have officially teamed up. This collaboration has been gaining considerable attention, particularly as ADA, which had been facing a decline, began to show signs of recovery in its value.

Transforming Fan Engagement

The main objective of the partnership is to transform fan engagement by offering fresh and innovative opportunities for Barcelona fans. Through this alliance, the club aims to utilize blockchain technology not only to educate its supporters but also to offer tangible rewards.

These rewards will reportedly include both non-fungible tokens (NFTs) and ADA tokens, providing young fans with various career opportunities while simultaneously enhancing their connection to the club.

Mutual Benefit

Frederik Gregaard highlighted the community-driven ethos shared by both the club and Cardano, with Barcelona boasting over 150,000 members and more than 1,200 fan clubs around the world. A crucial aspect of the agreement is the creation of Barça Vision, a platform designed to improve fan engagement by merging Web3 and AI technologies.

Additionally, the establishment of BarçaVerse will reportedly bring together supporters all over the world, regardless of location, through a digital format. The core principles behind this metaverse will be upheld by both FC Barcelona and Cardano.

The Machines Arena is officially set to launch on Steam on January 14th, with plans to launch on the PS5 later on in 2025.

Gameplay Rewards

The Machines Arena is a top-down hero shooter where players clash in adrenaline-fueled combat. By playing the Ethereum-powered game, users can be rewarded with digital collectibles in both PvP and PvE modes.

Due to platform restrictions, the game will not feature blockchain elements on either Steam or PS5. Through the Epic Games Store and on Android, however, players will be able to earn TMA tokens and trade NFT skins on Ronin, features that will not be available in the Steam version.

Sony Remains Hesitant

David Gracia of Directive Games highlighted the aim of broadening the player base while adhering to platform policies. Ongoing discussions with Sony are exploring the possibility of incorporating blockchain features into the PS5 version, although the inclusion of these elements remains uncertain as of this time.

Tether (USDT) is considering implementing AI-based strategies and technologies into its infrastructure, with a key focus on filmmaking.

AI And Filmmaking

CEO Paolo Ardoino noted that AI roles, particularly in filmmaking, align with what the company wants to achieve in terms of innovation and efficiency. The firm has also ventured into commodity lending and invested $775 million in the video platform Rumble. 

Additionally, Tether is building an AI-driven filmmaking platform and has added 30 specialists in recent months. It plans to hire more, targeting filmmakers in regions like Europe, Asia-Pacific, and Latin America, with plans to increase its workforce to 200 by mid-2025.

A Mixed Bag

Tether is a dominant force in the stablecoin market, with its USDT stablecoin accounting for 67% of the market and $138 billion in circulation. This expansion comes after Tether acquired a stake in the AI and cloud computing firm Northern Data.

Despite its success, Tether has faced many controversies, including links to criminal activities and regulatory scrutiny in Europe. The company previously cooperated with authorities to freeze tokens involved in illegal activities.

The Crypto Fear and Greed Index, which tracks Bitcoin (BTC) as well as broader crypto market sentiment, dropped 19 points in a day to 50, its lowest since October 14th, 2024. This shift brings the index into the Neutral zone after months in the Extreme Greed and Greed zones.

Key Factors

Bitcoin fell below $92,000 on January 9th, influenced by reports that the U.S. Department of Justice could sell $6.5 billion worth of Bitcoin seized via the Silk Road darknet marketplace, although no Bitcoin has been sold yet.

Analysts also point to expectations that the U.S. Federal Reserve may tighten monetary policy in 2025, which could further affect the crypto market. As of this writing, BTC is trading at just above $94.1K.

Further Retracement Possible

Rising treasury yields and a stronger U.S. dollar have also kept Bitcoin below $100,000 in recent weeks. Additionally, U.S. spot Bitcoin ETFs saw nearly $570 million in outflows on January 8th, suggesting further retracement for Bitcoin.

The Fear and Greed Index is based on market volatility (25%), trading volume (25%), social media sentiment (15%), the dominance of BTC (10%), and other trends (10%). It reached a 2024 high of 94 on November 22nd, boosted by optimism around Donald Trump fueling speculation about a U.S. Bitcoin reserve.