Recent statements by key figures in technology and finance, such as David Sachs, Elon Musk, and companies like BlackRock, highlight the significant changes taking place in the cryptocurrency and blockchain technology markets. We are witnessing an evolution in views on the role of cryptocurrencies, their place in traditional investment strategies, and the introduction of new technologies to improve the efficiency of government systems. These shifts open up new horizons for both investors and the entire cryptocurrency community.
David Sachs and the New View on Cryptocurrencies
David Sachs, who actively works on AI and cryptocurrency policies, recently stated that the classification of digital assets may change significantly. In particular, he pointed out that NFTs (non-fungible tokens) and meme tokens should be considered as collectible items. This approach differs from the Biden administration’s traditional view of cryptocurrencies and tokens as financial instruments. Sachs emphasized that classifying these assets as “collectibles” opens new opportunities for regulation and taxation.
These changes could be an important step in advancing cryptocurrencies as fully recognized and legitimate tools for investment, collection, and even integration into public finance. Sachs’ position is likely to influence future legislative initiatives and the regulation of the cryptocurrency industry.
Bitcoin Strengthens its Position Against Gold
One of the most prominent trends in financial markets is Bitcoin strengthening its position against gold. Over the last 12 years, the price of gold has significantly decreased in Bitcoin terms. For example, in
2011, one ounce of gold cost 732 BTC, while today that same ounce costs only 0.02 BTC. If current growth trends for Bitcoin continue, in ten years, the price of one ounce of gold could be only 0.00000315 BTC.
This represents a significant weakening of gold’s position as a “safe haven” for investors, especially amid global uncertainty and the rapid rise of cryptocurrencies. Traditional investors, who have long viewed gold as a safe asset, may begin to reconsider their strategies, as Bitcoin, being a decentralized and finite resource, continues to grow while gold loses its appeal in the digital age.
Elon Musk and Blockchain Implementation in Government
Elon Musk, known for his ambitious technology projects, proposed using blockchain to improve the efficiency of the U.S. government. As part of the initiative to create a new Department of Government Efficiency, Musk is discussing how blockchain technologies can be used to track federal spending, protect confidential data, process payments, and even manage government buildings.
Musk’s idea is to implement blockchain to improve transparency, reduce costs in the public sector, and enhance data security. This could be a significant step in adopting digital assets and blockchain technologies at the government level, opening new opportunities for cryptocurrencies and decentralized technologies. Musk is also planning to meet with public blockchain developers to assess their technologies, which could form the basis for future changes in the U.S. government system.
BlackRock and the Largest Bitcoin Purchase
The move announced by the largest investment company, BlackRock, also highlights the growing interest of institutional investors in cryptocurrencies. Last week, BlackRock purchased $1 billion in Bitcoin, increasing its share in BTC to 2.7% of the total volume. This decision clearly signals that major financial players trust cryptocurrencies as an investment tool, especially in times of instability in traditional financial markets.
This purchase could encourage other large investment firms to follow BlackRock’s lead, furthering the recognition of cryptocurrencies as an integral part of the financial world. Additionally, the involvement of firms like BlackRock in the cryptocurrency market helps legitimize and stabilize it, strengthening trust from both private and institutional investors.
In the news space, there are no reasons (or at least not yet) for panic or a sell-off of the leading cryptocurrency. The drop of Bitcoin from $105,000 to $98,000, despite the positive news, can be attributed to several factors.
Market Correction
Cryptocurrency markets are cyclical, and corrections after sharp increases are a normal phenomenon. In the case of Bitcoin, reaching $105,000 could have led to excessive overbuying of the asset, which triggered the pullback.
On the 4-hour timeframe, yes, but on the daily chart, we were at 2600 points when the peak was at 6000, and that’s the whole issue.
Large Liquidation
During the peak of new all-time highs, many players are using leverage, which causes overheating in the market and, subsequently, a cascade of liquidations. Add to that the “retail investors” panicking, and you get the correction down to $98,000 with risks of it falling even further. Key support levels are at $96,000.
CZ Urges Not to Panic and Stick to the “Fundamentals in Crypto” on Platform X
Earlier, Binance Labs (now CZ’s family office) expressed the view that the focus in crypto in 2025 will be on “infrastructure” and fundamentals, rather than on price movements and market hype.
Pantera Capital also predicted that the focus in crypto would soon shift back to investing based on fundamental indicators.
Thus, the Bitcoin drop is a natural market correction, linked to both technical and psychological factors.
