The Crypto Compass Issue #81

Hello readers,

This week, the idea of Bitcoin as a strategic reserve gained traction with strong endorsements from former President Donald Trump and presidential candidate Robert F. Kennedy Jr. Both leaders envision Bitcoin as a key asset for America's economic future, akin to gold, offering stability and security. Their support highlights a growing recognition of Bitcoin's potential role in national fiscal strategy amidst a rapidly evolving financial landscape.

Bitcoin Nears $70,000 as Trump Pledges Strategic Asset Status

Bitcoin approached $70,000 in Asian trading hours following Republican candidate Donald Trump's announcement to make Bitcoin a national strategic asset if elected. Bitcoin Cash (BCH) and the memecoin BRETT led gains, with BCH up over 10% and BRETT up 11%. Major tokens like Solana's SOL, BNB, Ether (ETH), and XRP saw rises between 2-6%. The rise in BTC and ETH prices caused significant liquidations of short positions, totaling $13.8 million and $11.4 million, respectively. Trump's plans include firing SEC Chair Gensler and building a strategic Bitcoin reserve, aiming to position Bitcoin as a competitor to gold.

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RFK Jr. Advocates for Bitcoin's Role in U.S. Fiscal Strategy

In an exclusive interview at the 2024 Bitcoin Conference in Nashville, presidential candidate Robert F. Kennedy Jr. emphasized the growing recognition among U.S. policymakers of Bitcoin's inevitability and the need for a coherent digital asset strategy. RFK Jr., running as an independent, highlighted the importance of Bitcoin's "transactional freedom," recalling the Canadian trucker strike where protestors faced bank account freezes. He argues that establishing a strategic Bitcoin reserve is crucial for maintaining the dollar's status as a global reserve currency. RFK Jr. believes that the country's approach to Bitcoin will play a pivotal role in shaping America's financial future.

Bitcoin Futures Open Interest Hits All-Time High, Signaling Potential Price Breakout

Bitcoin futures open interest has reached a new record high of $39.46 billion across all exchanges, surpassing the previous high of $39.03 billion from March 2024. This surge indicates growing investor demand and interest in Bitcoin, potentially signaling an imminent price breakout. Over 75% of short-term Bitcoin holders are currently in profit, suggesting increased retail demand, while Bitcoin's market dominance continues to rise. Analysts, including Rekt Capital, predict that Bitcoin could reach $71,500 as its next major target.

Happenings of the week

• $600M XRP token release to bring August crypto unlocks to $1.5B

• Michael Saylor Says US Government Should Own ‘Majority’ of All Bitcoin

• There won’t be a ‘long list of crypto ETFs,’ BlackRock’s Robert Mitchnick says

• Wyoming to Launch Bitcoin Research Institute

Compound Governance Attack Sparks Controversy

A controversial proposal in the Compound governance system, led by a whale known as "Humpy," narrowly passed with 51% approval, redirecting 499,000 COMP tokens to a vault controlled by Humpy and the "Golden Boys." The proposal, which claims to offer additional yield through a new "Trust Setup," has faced widespread skepticism due to its centralized control. Critics, including DeFi security experts, have labeled it as a potential governance attack. The Compound community is now considering Proposal 290 to mitigate future risks by transferring the Timelock Admin. The incident has negatively impacted the COMP token, which fell 5.7% to $48, with its market cap dropping to $373 million.

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