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Hey there, Crypto Crusaders!

Welcome to this week’s Hodl Report, where crypto meets the real world, one awkward blockchain explanation at a time.

This week we dive into:

• State of crypto adoption 🌎

• Key market moves this week 📊

• Top weekly news recap 📰

• Update on our Solana bet 📢

• Magnificent memes 🤣

Crypto Adoption Update

This week, Bitcoin did what Bitcoin does best - it took us on a classic rollercoaster ride. 🎢

Prices shot up, dipped, and bounced back, while Bitcoin dominance made some bold moves of its own. The grand finale? Settling snugly above the six-figure mark. 💲💯

But hey, we're not here for the quick thrills.

This is the long game, and patience is our ultimate flex. 💪

Zooming out, crypto adoption isn’t a sprint, it’s a marathon. New financial tech like Bitcoin takes the scenic route: starting with a niche cult following, until retail investors join in, then moving to funds, then corporations and eventually nation-states. Each step is a victory lap on the road to mainstream acceptance.

Remember, the road to adoption is paved with skepticism. It’s like trying to get your grandma to use a smartphone - there’s a lot of "no"s before that triumphant "yes". 📱👵

But progress is progress, and every discussion, proposal, presentation and research committee brings us closer to a crypto-friendly future.

So, where’s the next big “Yes” in this cycle that confirms adoption is moving forward?

It’s when Bitcoin solidifies itself as a legitimate asset class, complete with the infrastructure for pension funds, indexes, and traditional finance (TradFi) to invest. 🪙💼

Large pension funds have started to dip their toes in, and with a pro-crypto Trump team on deck, regulatory clarity should open the floodgates for TradFi to jump in. With Bitcoin ETFs now on the menu, it’s easier than ever for big players to start allocating.

We got a huge “Yes” this week with MicroStrategy being added to the Nasdaq 100.

Why’s that a big deal?

Well, passive investors buying into the index will result in cash funneling straight to MicroStrategy. And we all know what that means…Michael Saylor will continue his Bitcoin shopping sprees. 🛒

This week also brought a huge “No” when Microsoft shareholders hit us with a big Nay vote on adding Bitcoin to their corporate treasury. 🛑 Meanwhile, Amazon shareholders have pitched a similar idea, but another No is probably on the horizon. Baby steps, people.

Let’s be real here.

Adoption moves at a snail’s pace, while hype zips by like a racecar. 🐌🏎️

By the end of this bull run (think 2025 if history repeats), we probably won’t see nation-states stockpiling Bitcoin or corporations cannonballing into crypto.

But hype?

Oh, it’ll be pumping the markets like rocket fuel this cycle. 🚀

The real win is the groundwork being laid for the future, setting the stage for the biggest moves yet to come.

Strap in, folks.

Even with the Microsoft rejection and Amazon proposals, this week’s corporate & nation state adoption news is buzzier than a GPU mining in August.

MicroStrategy (MSTR): Michael Saylor’s Bitcoin buffet continues! MicroStrategy bought another $2.1 billion worth of Bitcoin.

Marathon Digital (MARA): Not to be left behind, MARA dropped a cool $1.1 billion to buy Bitcoin as well.

Riot Platforms (RIOT) has also joined the buy-Bitcoin-for-your-treasury party this week with a $525 million purchase.

MicroStrategy’s $25.6 billion Bitcoin stash is setting the bar high, but here’s the kicker - even a tiny allocation from other major U.S. corporations (once they get comfy) could kick off a whole new era of crypto adoption.

The nation-state Bitcoin reserve front got plenty of buzz this week, with headlines ranging from speculative guesses to outright sensational hype.

Russia Parliamentary Deputy proposed using Bitcoin as a Strategic Reserve asset to hedge against Western sanctions.

Iran is rumored to be jumping on the Bitcoin bandwagon - likely as a way to shake off their reliance on the US dollar.

4 Nation States are rumored to be setting up Bitcoin reserves, although they remain undisclosed.

El Salvador & Argentina inked a deal to collaborate on developing their crypto industries.

Florida, Texas & Pennsylvania have announced intentions to allocate portions of their treasury to a Bitcoin reserve.

Phew.

That’s a lot to pack into one week, but hey, the world’s big, and nobody wants to be the last one to the party! 🎉

Wrapping up the week, Eric Trump took the stage at the Bitcoin Mena conference and dropped 3 bold claims in a polished and eloquent speech about Bitcoin's future:

1. His father will be the “most pro-crypto president” in U.S. history ✅

2. Bitcoin’s future as a global asset class is unstoppable, thanks to its liquid, inclusive, and easily transferable nature 🌐

3. He’s calling it - Bitcoin to $1 million 🤑

If you haven’t already, we highly recommend giving his speech a listen. It’s a masterclass in breaking down Bitcoin’s potential for anyone new to crypto. Watch it here.🎙️

Finally, our favorite NBA Hall of Famer, Scottie P

ippen, is back at it with another dream that’s dripping with BULL(ish) vibes. 🏀

So, keep HODLing and let’s see how many dominoes fall next week. 🚀

1. El Salvador Adjusts Bitcoin Policy to Secure IMF Loan: El Salvador is set to modify its Bitcoin legislation, making acceptance of the cryptocurrency optional for businesses, to finalize a $1.3 billion loan agreement with the International Monetary Fund. This policy shift aims to reduce financial risks and unlock additional funding from global financial institutions.

2. BlackRock Recommends Up to 2% Bitcoin Allocation: Asset management giant BlackRock advises investors to consider allocating up to 2% of their portfolios to Bitcoin, citing its potential as a diversified return source due to its low correlation with other major asset classes. However, they caution about Bitcoin's high volatility and recommend regular reviews of its market dynamics.

3. Scaramucci Predicts China's Return to Bitcoin by 2025: Anthony Scaramucci, founder of SkyBridge Capital, forecasts that China will re-enter the Bitcoin market by 2025, potentially establishing a strategic Bitcoin reserve. He attributes this anticipated shift to the pro-crypto stance of the U.S., which may pressure other nations to adopt similar frameworks.

4. Federal Reserve Expected to Cut Interest Rates Next Week: The U.S. Federal Reserve is anticipated to cut interest rates by 0.25% at its upcoming meeting, despite a recent uptick in inflation to 2.7% in November. Experts suggest that even with this reduction, interest rates will remain historically high, and the Fed is likely to proceed with the cut as part of a previously outlined strategy.

5. Japanese Lawmaker Advocates for National Bitcoin Reserve: Satoshi Hamada, a member of Japan's House of Councilors, has urged the government to establish a national Bitcoin reserve. This proposal aligns with similar initiatives in countries like Argentina and Russia, reflecting a growing trend of nations considering Bitcoin as a strategic asset.

We're Still Bullish on Solana

The Stars Are Aligning for SOL 🚀

Let's talk about why Solana (SOL) remains one of our top picks. Despite some past regulatory hurdles, the future looks bright for this high-performance blockchain. Here's why:

1. ETF Applications
   Several financial heavyweights, including VanEck, 21Shares, Canary, and Bitwise, have thrown their hats in the ring, filing for Solana-based ETFs. Grayscale is also in the mix, seeking to convert its existing Solana Trust into a spot ETF. The SEC has set an initial review deadline for these applications on January 25, 2025.

2. Pro-Crypto Administration
   We’ve covered this extensively already, but with Gary Gensler stepping down as SEC Chair and Paul Atkins, known for his crypto-friendly stance, poised to take over along with all of Trump’s other pro-crypto nominations, it’s looking like a more favorably regulated crypto space.

3. Memecoin Mania
   Memecoin frenzy continues, and Solana's ecosystem is buzzing with activity. Platforms like pump.fun are capitalizing on this trend, driving user engagement and transaction volumes on the Solana network.

4. Grayscale's Minimal Sell Pressure
   Grayscale's Solana Trust holds approximately $134.2 million in assets under management. This small size suggests that even if converted to an ETF, the potential sell pressure would be minimal (unlike the huge sell pressure when Grayscale’s Bitcoin and Ethereum trusts were converted to ETFs).

5. Craft Ventures' Confidence
   David Sacks, co-founder of Craft Ventures, and recent Trump nominee for Crypto Czar (what even is that?) has shown confidence in Solana by investing in Multicoin Capital many years ago, a prominent backer of Solana, since 2017.

How We’re Playing the SOL Trade

We’re already in the Solana game, having picked up our holdings back when SOL was trading under $125 (ah, the good old days.).

As we approach the ETF review deadlines in January, we’re expecting the hype to build, and with memecoins still riding high, SOL’s price could see some exciting action. 📈

Our plan? Take some profits around the ETF buzz and well before March 2025.

Why?

That’s when 7 million SOL tokens unlock for FTX creditors, and you can bet a chunk of those will hit the market. We covered this in a previous newsletter, so check it out if you need a quick refresh.

TLDR: We’re riding the hype but staying ahead of the unlock wave.

Want to do some analysis yourself on Solana’s key metrics? Blockworks has a dedicated page full of key Solana data kept up to date

Stay sharp out there, folks!

Big thanks for making it to the end of this week’s Hodl Report! 👊

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Happy Friday!

Disclaimer: The content from Hodl Report should not be taken as trading, investment or financial advice or solicitation to buy or sell any assets. This newsletter is for informational and educational purposes only. Please be careful out there and DYOR (do your own research).