BTC above $150K is ‘speculative fever,’ SAB 121 canceled, and more: Hodlers Digest, Jan. 19

Top Stories of The Week

Nasdaq seeks amendment to BlackRock’s Bitcoin ETF for in-kind redemptions

Nasdaq has submitted a filing on behalf of asset manager BlackRock, seeking a rule change to permit in-kind creation and redemption for its spot Bitcoin exchange-traded fund (ETF).

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Bloomberg ETF analyst James Seyffart said in a Jan. 24 X post that BlackRock “should have been allowed to do this from the get-go” when the BlackRock iShares Bitcoin Trust launched alongside the other ten US spot Bitcoin ETFs in January 2024.

On the same day as the filing, six more crypto ETF applications were filed in the US.

Nasdaq proposed “to allow for in-kind transfers of the Trust’s Bitcoin,” as per a Jan. 24 filing with the US Securities and Exchange Commission.

The filing stated that “Authorized Participants” — institutions that facilitate the creation and redemption of fund shares — would be able to use either cash or Bitcoin to create shares or receive cash or Bitcoin when redeeming shares.

MicroStrategy may owe taxes on $19B unrealized Bitcoin gains: Report

Despite never selling any Bitcoin, MicroStrategy may have to pay taxes on its unrealized gains.

Michael Saylor’s MicroStrategy, the largest corporate Bitcoin holder, may have to pay federal income taxes on its unrealized gains, according to the Inflation Reduction Act of 2022.

The act established a “corporate alternative minimum tax” under which MicroStrategy would qualify for a 15% tax rate based on the adjusted version of the company’s earnings, according to Jan. 24 report in The Wall Street Journal.

Still, the US Internal Revenue Service may create an exemption for BTC under President Donald Trump’s more crypto-friendly administration.

MicroStrategy’s holdings have surpassed 450,000 BTC, worth more than $48 billion, after the company bought $243 million of BTC on Jan. 13.

Silk Road founder Ross Ulbricht thanks Trump for full pardon

Silk Road founder Ross Ulbricht, who had been serving a double life sentence without parole, publicly thanked US President Donald Trump after receiving a full pardon.

This marked the first time Ulbricht had spoken publicly since being released from a maximum-security prison in Arizona, where he was held for more than 11 years.

“Last night, Donald Trump granted me a full pardon. I was doing life without parole, and I was locked up for more than 11 years. But he let me out. I’m a free man now. So let it be known that Donald Trump is a man of his word,” Ulbricht said in a video shared on X on Jan. 23.

Ulbricht expressed gratitude, calling the pardon “an amazing blessing.” He added:

“Thank you so much, President Trump, for giving me this amazing blessing. I am so, so grateful to have my life back, to have my future back, to have this second chance. This is such an important moment for me and for my whole family.”

SEC cancels controversial crypto accounting rule SAB 121

The US Securities and Exchange Commission has canceled a controversial rule that asked financial firms holding crypto to record them as liabilities on their balance sheets.

A new Staff Accounting Bulletin (SAB) from the commission on Jan. 23 said it “rescinds the interpretive guidance” of SAB 121, an agency rule published in March 2022 that the crypto industry has long sought to cancel.

“Bye, bye SAB 121!” SEC Commissioner Hester Peirce, the agency’s crypto task force lead, wrote in a Jan. 23 X post. “It’s not been fun.”

The SEC published SAB 121 in March 2022, which asked financial firms holding crypto on behalf of customers to report the assets as a liability on their balance sheet. The crypto industry pushed back on the measure, saying it would make holding crypto administratively more difficult.

House Financial Services Committee Chair French Hill said in a statement on X he was “pleased” to see the “misguided SAB 121 rule has been rescinded.”

Elizabeth Warren proposes Elon Musk pay more taxes for gov’t efficiency

US Senator Elizabeth Warren has penned an open letter to Department of Government Efficiency (DOGE) Chair Elon Musk, proposing ways the federal government could cut wasteful spending.

According to the Jan. 23 letter, Warren proposed fully funding the Internal Revenue Service (IRS), closing the carried interest loophole, and adding a capital gains tax on estates.

The wealthy appear to be the targets of Warren’s IRS proposal, as the socioeconomic group is mentioned four times in the brief, four-paragraph section titled “Cutting Waste and Abuse in the Federal Tax Code.” With an estimated net worth of $426 billion, Musk certainly falls into that category.

Most Memorable Quotations

“The year 2024 marked the beginning of a shift toward broader cryptocurrency acceptance, and the launch of new coins by President Donald Trump and First Lady Melania sets a powerful precedence for what is to come.”

Ben Zhou, co-founder and CEO of Bybit

“Many governments hold gold but I think they should hold Bitcoin because it is essentially the new gold standard. I think a very core principle is that you should hold assets which maintain value over time.”

Brian Armstrong, CEO of Coinbase

“If you’re frightened about the debasement of your currency or you’re frightened of the economic or political stability of your country, you can have an internationally based instrument called Bitcoin that will overcome those local fears.”

Larry Fink, CEO of BlackRock

“The reason the community is so concerned with Ross’s plight, as Trump very accurately tuned into, was the way in which his political persecution by the state was carried out.”

Mati Greenspan, founder and CEO of Quantum Economics

“Based on what I am aware of, the Trump family will build one or more giant businesses on Ethereum.”

Joe Lubin, co-founder of Ethereum and founder of Consensys

“I do not think Bitcoin is a threat to the US dollar.”

David Solomon, CEO of Goldman Sachs

Winners and Losers

At the end of the week, Bitcoin (BTC) is at $104,900, Ether (ETH) at $3,322 and XRP at $3.10. The total market cap is at $3.60 trillion, according to CoinMarketCap.

Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Official Trump (TRUMP) at 372.53%, Raydium (RAY) at 32.13% and GateToken (GT) at 24.35%.

The top three altcoin losers of the week are Sonic (prev. FTM) (S) at 31.97%, ai16z (AI16Z) at 30.77% and dogwifhat (WIF) at 30.68%. For more info on crypto prices, make sure to read Cointelegraph’s market analysis.

Prediction of The Week

Bitcoin could top $150K before retrace in repeat of 2017 cycle, says analyst

Bitcoin’s price action is mimicking the 2016 to 2017 cycle and could hit a top of $150,000, says Glassnode lead analyst James Check.

Check said in a Jan. 23 episode of the Theya podcast that $120,000 to $150,000 is what he would call the “topping cloud” for Bitcoin, and any level above that likely won’t hold for long.

“We can absolutely bust out the top end of that, with a very, very low probability of staying at the top end,” Check said.

Bitcoin is currently trading at $103,019, and Check added that the “average guy” is “quite profitable” if it reaches $120,000 — significantly more so if it reaches $150,000.

“Above that is speculative fever, and I probably would think if we go above it, we will go back down through it,” he said.

Bitbo data shows Bitcoin’s short-term holders have paid an average of $90,349 per BTC, while long-term holders have paid an average of $24,627.

FUD of The Week

John McAfee’s widow launches memecoin, but some suspect a scam

John McAfee’s widow, Janice Elizabeth McAfee, has allegedly launched a memecoin in her late husband’s honor as the memecoin frenzy, galvanized by US President Donald Trump’s weekend token launch, continues to grow.

McAfee announced the token launch through her late husband’s X account on Jan. 23, writing, “You didn’t think I’d miss this cycle, did you?” During his life, McAfee was an ardent supporter of cryptocurrency, particularly Bitcoin, and its ability to reduce state power over the financial system.

Initial reactions from the crypto community on X were positive, but later analysis revealed that 90% of the token’s 100 million supply had already been distributed to hundreds of different wallets, with just a small amount sent to two trading pools.

Crypto donations to extremist groups rise in Europe — Report

Cryptocurrency donations to extremist groups have dipped globally but are rising in Europe, according to a report from blockchain data platform Chainalysis.

The report, shared with Cointelegraph, shows most crypto donations to extremist groups came from North America prior to 2017. Since then, Europe has been steadily capturing inflows. Between 2022 and 2024, for instance, Europe accounted for nearly 50% of extremist group onchain activity.

Ledger co-founder released after days in captivity in France: Report

David Balland, co-founder of the French cryptocurrency hardware wallet manufacturer Ledger, was released following a harrowing kidnapping incident, according to a statement from the Paris prosecutor’s office cited by Bloomberg.

Balland was abducted from his home in central France during the early hours of Jan. 21. He was held captive until a police operation on the night of Jan. 22 secured his release. The kidnappers had demanded a ransom in cryptocurrency.

Ledger was established in 2014 by Balland and others. The devices are designed to keep users’ private keys offline, thereby safeguarding digital assets from online vulnerabilities.

The company, which raised 100 million euros ( $109 million) in 2023, now boasts a valuation of 1.3 billion euros ($1.42 billion) and employs about 700 people.