Seeds of Wisdom RV and Economic Updates Monday Morning 1-20-25
Good Morning Dinar Recaps,
INVESTOR CHRIS BURNISKE SEES CRYPTO ENTERING ‘GOLDILOCKS PERIOD’ AMID SUPPORT FROM INCOMING US ADMINISTRATION
Venture capitalist Chris Burniske believes crypto is about to enter uncharted territory as the United States welcomes a second Donald Trump presidency.
Burniske tells his 317,600 followers on the social media platform X that he thinks Bitcoin’s (BTC) four-year cycle may witness an abrupt end with the installment of a pro-crypto US government.
BTC’s four-year cycle is based on halving events when Bitcoin miner rewards are slashed in half every four years. In the past, halvings have correlated with parabolic rallies for Bitcoin as the reduction in new BTC emissions created an imbalance between supply and demand.
Says Burniske,
“Continue to believe there are high odds we break the simplistic four-year cycle that BTC has honored the last ~12 years…
With a supportive US administration, crypto could be entering a Goldilocks period over the next many years, where returns aren’t as parabolic, but instead we see steadier growth, not to mention majors stop suffering 85-95% drawdowns.”
In investing, a Goldilocks scenario is when an asset class sees moderate and sustainable growth over a long period of time.
Burniske also predicts market meltdowns that crypto investors have been accustomed to will likely be in the rearview mirror once digital assets enter Goldilocks territory. He believes that exchange-traded funds (ETFs) will support the steady rise of crypto assets while minimizing market drawdowns.
“On drawdowns: I’m not saying they’ll stop, I’m saying it’s possible they get less extreme for the majors, which could whiplash people who overtrade with too much aggression…
I also think BTC and ETH both having ETFs, and perhaps SOL+ soon, will provide more consistent buying pressure for these assets.”
While the investor believes in steady growth for large-cap coins, he notes that digital assets could still witness gut-wrenching corrections but they likely won’t be as severe as the ones seen in the past.
“If you ever want to see the percentage drawdown BTC could be exposed to, look at the 200-week SMA (simple moving average), which has been our most reliable technical support each bearish period. Right now at ~$40,000 that suggests a 60% drawdown is possible, which is a far cry from 80%+ (has to drop another 50% from 60% down, to hit 80% down). As BTC rises, so too will the 200-week SMA.”
Burniske concludes by saying that 2025 will likely be a “great year” for crypto investors.
@ Newshounds News™
Source: DailyHodl
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GOLD PRICES COULD HIT $3,000 IF TRUMP PUTS HIS THREATS TO WORK
Donald Trump took oath as the 47th President of the United States on Monday and will govern the nation for four years. Investors closely watch his statements, threats, and proposals on the U.S. economy and monetary policies. Gold prices hovered around the $2,707 mark when Trump took oath and surged nearly 5 points in the indices.
The precious metal remains on the greener side of the spectrum and is looking to gain another leg-up. Traders are hopeful that Trump’s upcoming trade wars could benefit gold prices, as institutions could park their funds to hedge the markets.
Trump’s Trade Tariffs Could Make Gold Reach $3,000
A leading commodity investor told Kitco News that gold prices could reach $3,000 if Trump sticks to his tariff threats. The markets could react strongly if the tariffs are imposed, as they could cause a trade imbalance between the U.S. and other countries.
Jesse Colombo, an independent precious metals analyst and founder of the BubbleBubble Report said that the short-term target for gold prices remains at $2,800. If Trump heats the import and export sector, gold’s price target remains a solid $3,000. He wrote that it could breach the mark during the second half of 2025.
“For the past two months, gold has been taking a breather, but now the market has a lot of pent-up energy. I’m excited about gold’s potential,” he said. The analyst explained that if Trump’s tariffs take place, consumers around the world will have to shell out more money for daily essentials.
“Gold’s significant resistance level remains $3,000 an ounce,“ he said, adding that a price rise ignited by Trump could lead to stagnation in the global markets. Therefore, investors need to closely watch Trump’s policies and invest widely based on the market trends. The XAU/USD could continue its rally in 2025 and remain in demand throughout the year.
@ Newshounds News™
Source: Watcher Guru
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WHAT IS DEFAI? A BEGINNER'S GUIDE
Defai is a convergence of artificial intelligence and decentralized finance, poised to simplify on-chain tasks and unlock new opportunities.
This piece is a guest post by Blocmates. Blocmates is an invaluable crypto news and educational resource that offers clarity in the often complicated and jargon-filled crypto space. In this timely article, Blocmate’s Gaz explains this important emerging sector of AI x crypto. If you aren’t familiar with defai, or you don’t know exactly what it means, this article is for you.
Welcome to the Intersection of AI and Defi
AI agents are, at present, the only meta that seems to matter. They’ve been breathing fresh degeneracy into the crypto markets like nothing we have seen until this point in the cycle and stealing insane amounts of mindshare in the process.
Meanwhile, the fools who faded are forced to FUD away from the sidelines while the rest of us sift through the trenches to try and catch the next 100x mooner.
The open-sourced nature of this narrative means that things are moving at a pace that no single humanoid can possibly keep up with. This further proves the utility of these ever-awake, ever-watching robots — who are already outcompeting us mortals in every aspect of the crypto game.
It seems like very soon we simple homo sapiens will be forced into capitulation by our new AI overlords as we watch ourselves be replaced in pretty much every facet of life.
It is, however, not all bad news. At least not for us degens.
Within this agent meta will spring forth many sub-metas that we can attempt to gamble our way to freedom before the inevitable replacement occurs.
@ Newshounds News™
Read more: Bitcoin News
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