opinion

Crypto SWOT: Bitcoin extended its biggest jump in more than a week

Kitco Media
By Frank E Holmes
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Crypto SWOT: Bitcoin extended its biggest jump in more than a week teaser image

Strengths

  • Of the cryptocurrencies tracked by CoinMarketCap, the best performer for the week was Mantra, rising 44.85%.
  • Tesla’s Bitcoin gave its latest quarterly results a boost, courtesy of a new accounting rules for digital assets. Its net income got a $600 million mark-to-market benefit from the digital tokens due to the adoption of the accounting approach, according to the CFO and reported by Bloomberg.  
  • Bitcoin extended its biggest jump in more than a week following the Federal Reserve’s latest monetary policy meeting and comments from Chair Jerome Powell. Bitcoin rose 1.3% to about $105,134 on Thursday, according to a Bloomberg article. 

Weaknesses

  • Of the cryptocurrencies tracked by CoinMarketCap, the worst performer for the week was Puddy Penguins, down 38.02%.
  • The parents of FTX co-founder Sam Bankman-Fried are exploring ways to secure a pardon for the onetime crypto billionaire from President Donald Trump. His parents have been meeting in recent weeks with lawyers and other figures considered to be in Trump’s orbit, according to Bloomberg.  
  • The Trump administration’s embrace of cryptocurrencies is helping fuel a speculative mania that could cause “havoc” when prices collapse, according to an article published by Bloomberg. 

Opportunities

  • Thai government is considering a proposal to issue stablecoins backed by state bonds to help boost the nation’s digital asset markets. Stablecoins can be used to pay merchants and will likely receive strong interest from investors since they’ll be backed by government debt, writes Bloomberg.  
  • The crypto exchange Kraken, which has long-held aspirations of becoming a publicly-traded company, said revenue more than doubled during last year’s record breaking digital asset market rally, according to Bloomberg.  
  • Cipher Mining shares jumped as much as 26% in premarket trading on Friday after the Bitcoin mining company announced a $50 million PIPE investment from SoftBank that will support the high performance computing business, according to Bloomberg.  

Threats

  • Crypto prices have fallen in recent days as Chinese artificial intelligence startup DeepSeek triggered volatility in broader markets. Bitcoin has been moving more in tandem with stock markets recently, writes Bloomberg. 

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  • A proposed class action lawsuit has been filed against cryptocurrency platform pump.fun alleging it put investors at high financial risk by marketing and issuing unregistered and volatile memecoins. The lawsuit claims pump.fun’s operators used aggressive marketing tactics and didn’t register with the SEC, according to Bloomberg.  
  • Democratic Senator Elizabeth Warren is pressing Commerce secretary nominee Howard Lutnick on connections he and his firm Cantor Fitzgerald LP have with a company that’s the go-to cryptocurrency of the criminal world, raising questions about potential conflicts of interest ahead of his confirmation hearing on Wednesday, according to Bloomberg. 
Kitco Media

Frank E Holmes

Frank Holmes is CEO and chief investment officer of U.S. Global Investors, Inc., a boutique investment advisory firm based in San Antonio that manages domestic and offshore funds specializing in the natural resources and emerging markets sectors. The company’s no-load mutual funds include the Global Resources Fund (ticker PSPFX), the World Precious Minerals Fund (UNWPX) and the Gold Shares Fund (USERX).

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