Posted on

DeepSeek: the Chinese AI that crashed the market

The market collapsed following the launch of the R1 version of DeepSeek, an artificial intelligence developed by a Chinese company. What happened?

Over the past few hours, the markets—particularly the NASDAQ (the index of major technology stocks) and the cryptocurrency index—have fallen sharply. Many analysts believe this reaction is due to the launch of the R1 version of DeepSeek, an artificial intelligence system based on language models similar to Chat GPT.

In particular, the speed with which DeepSeek was developed and its extremely low cost caused a stir, especially considering that the model is free and open-source. According to its developers’ statements, the realisation of DeepSeek R1 required only USD 6 million and two months of work.

DeepSeek: a threat to the United States?

What is the leading cause for concern related to this innovation in artificial intelligence, which has contributed to the recent collapse of technology stocks? It is quickly said: DeepSeek seems to work very well, and the costs to develop it are negligible compared to those incurred, for instance, by Google to ‘train’ Gemini ($191 million) or by OpenAI to release Chat GPT 5 (between $1.7 and $2.5 billion). This disparity doubts the robustness of AI-related stocks’ impressive growth.

The most commonly discussed hypothesis—though it should be cautiously approached is that DeepSeek could revolutionize the artificial intelligence market and significantly reduce the demand for specific hardware components. This could potentially lead to a wave of panic selling. Conversely, some argue that this is merely a narrative, a typical ‘catalyst’ used to explain movements that are actually part of normal market fluctuations.

What about the crypto market?

Cryptocurrencies experienced a decline for two primary reasons. First, there is a notable correlation between the stock market and the crypto market: when one market falls, it often pulls the other down as well. Additionally, some analysts believe that macroeconomic factors are at play. For instance, during the Federal Open Market Committee (FOMC) meeting on January 29, interest rates could remain unchanged or even be increased despite the new president, Donald Trump, advocating for a reduction.

The market and price movements

The Nasdaq index experienced a correction of nearly 4% before the market opened, while NVIDIA stock plummeted over 14% in pre-market trading before recovering slightly at the start of the trading session.

In terms of cryptocurrencies, Bitcoin fell below the significant psychological threshold of $100,000, a level considered crucial support by some analysts, but then recovered. Overall ,sentiment regarding the leading cryptocurrency appears steady. Prominent analysts, including Arthur Hayes, continue to predict a price target for Bitcoin between $180,000 and $250,000 during this bull market. Additionally, it’s worth noting that February has historically been a strong month for cryptocurrencies, with Bitcoin typically averaging a performance increase of around 15%.

Buy Bitcoin!

DeepSeek is not a ‘black swan’

Despite the scaremongering and scapegoating regarding the recent drop in prices, many experts believe that DeepSeek should not be considered a ‘black swan.‘ By definition, a black swan refers to unpredictable and disruptive events—such as wars, pandemics, or the unexpected collapse of key sectors or players—that can radically alter markets for a prolonged period. For example, the black swans of the last cycle were the collapse of the Earth-Moon ecosystem and the failure of the centralized exchange FTX.

In the case of DeepSeek, however, we are dealing with an innovation that, while interesting, is likely already reflected in market prices. This is especially true at a time when artificial intelligence is at the forefront of media and financial discussions. When everyone is warning about a potential bubble, it suggests that the information is already widely known and, therefore, largely anticipated.

As several analysts note on social media, a narrative is often constructed to justify periods of panic or sudden sell-offs. Without concrete evidence of a widespread collapse, the current market correction may merely be a technical adjustment within an overall bullish trend. Focusing on fundamentals and long-term prospects is the most prudent strategy in a market known for its volatility, helping investors avoid being swayed by extreme assumptions or temporary ‘noise.’

Posted on

This is how Donald Trump capitalised 12 billion in two days with his meme coin

Donald Trump's meme coin on Solana

Donald Trump surprised everyone by announcing the launch of a meme coin on Solana. Find out the price, capitalisation, and why this move is shaking up the entire crypto market.

Without warning, on the night between Friday and Saturday and thus just days before his inauguration into the White House, Donald Trump made an announcement that shook the cryptocurrency world. The 47th US president unveiled that he had launched a memecoin called Official Trump (TRUMP) on Solana, which surpassed a capitalisation of $12 billion within hours.

Some investors initially thought it was a prank or a hacking attack on social channels. Yet confirmation came directly from CIC Digital LLC, the same entity already handling the launch of the tycoon’s NFT collections.

The token was launched with Trump’s image inspired by the July assassination attempt in Butler, Pennsylvania, a commercial initiative that has split the world between those who criticise the operation as a blatant attempt to profit from the office he is about to occupy and those who espouse the idea of a celebratory instrument of victory.

Officially ‘Official Trump (TRUMP)’: ‘presidential’ token on Solana

The idea behind Official Trump (TRUMP) is quite clear: to establish itself as Donald Trump’s only ‘official’ memecoin. According to the information provided by the team, the token’s distribution foresees an initial availability of 200 million TRUMP from day one, intending to extend the total supply to 1 billion within three years.

  • Updated price: according to the latest figures, 1 TRUMP is around $53
  • Trading volume: in the last 24 hours, the Trump meme coin has recorded around $51 billion. A record for the industry.
  • Distribution: According to the meme coin’s website, 80% of the coin’s supply is owned by CIC Digital LLC, an affiliate of the Trump Organisation, and Fight Fight LLC, a company incorporated in Delaware on 7 January. According to documents filed by the state, both companies will receive an undisclosed share of trading revenue.

Trump announced the launch of his token on social media: ‘It’s time to celebrate everything we stand for: WINNING! Join my special Trump Community. GET YOUR $TRUMP NOW.’ Within hours, the token quickly entered the market’s top 20 cryptos by capitalisation. 

The legal notes specify that the tokens are not regarded as ‘an investment opportunity’ or ‘a security’ but rather as an expression of support and commitment to the ideals and beliefs embodied in the ‘$TRUMP’ symbol.

Market and community reactions

Public opinion remains divided:

  • Pro: Supporters see TRUMP as a way to democratise access to digital assets and celebrate a prominent political figure.
  • Cons: Critics fear using presidential power for commercial purposes, raising ethical and regulatory concerns.

Criticism and scepticism

Many analysts and investors have expressed doubts about the operation. Nick Tomaino, a venture capitalist and former Coinbase executive, said, “The fact that Trump owns 80% of the tokens and launched them in the run-up to the inauguration is predatory, and many could suffer losses.”

The Kobeissi Letter, a well-known industry analyst, also commented negatively on X, describing the operation as ‘bordering on insanity’. In particular, it pointed out how the launch of $MELANIA, another meme coin linked to the Trump family, resulted in the pulverisation of $7.5 billion in just 10 minutes.

Support and celebration

On the other hand, the community of Trump supporters sees this initiative as a symbol of victory and celebration. With the slogan ‘It’s time to celebrate everything we stand for: WIN!”, Trump has attracted thousands of buyers, fuelling the hype around the project.

The launch of $MELANIA competes with $TRUMP

The launch of $MELANIA, which took place just over 24 hours after Trump’s, has unexpectedly impacted the market, prompting some traders to sell the $TRUMP meme coin to bet on a new target. “The official Melania meme is available! You can buy $MELANIA now,” was written on X and later shared by Trump.

Immediately after the debut of $MELANIA, the value of $TRUMP plummeted by more than 50%, from $75 to $30. In the following hours, it gradually rose again to around $64. Meanwhile, the market capitalisation of $MELANIA reached an impressive $13 billion.

From sceptic to crypto supporter?

Trump had previously criticised Bitcoin and the entire cryptocurrency industry, calling them ‘scams’. However, during the election campaign, he radically changed course, calling himself the ‘cryptocurrency president’ several times and becoming the first presidential candidate to accept cryptocurrency donations.

Following this interest, Trump launched a DeFi project on Ethereum called World Liberty Financial. However, in that case, Trump family members neither owned the platform nor held official roles in the company.

In addition, he declared his intention to use his executive powers to reduce the regulatory burden on companies in the cryptocurrency industry and announced the formation of a new dedicated advisory board. 

Among his plans is an executive order recognising Bitcoin and the crypto sector as national policy priorities. The order would invite government agencies to collaborate with the industry and establish a federal reserve for Bitcoin, allowing the government to buy and sell cryptocurrency. 

What happened this weekend in the world of decentralised finance also impacted the price of Bitcoin, which recorded a new all-time high at $109,500. 

Trump Token: the latest step in campaign merchandising

The Trump meme coin is the newest addition to the growing merchandising line, which already includes products such as perfumes, colognes, the ‘Trump Watches’ (with a value of up to $100,000), as well as silver coins, limited edition trainers, Trump-branded Bibles and collectable NFTs. NFTs and Trump-branded guitars alone generated 11.8 million in revenue.

How did the other ‘Trump tokens’ react?

The news did not fail to wreak havoc on cryptocurrencies already using Trump’s name or image—projects that originated well before TRUMP‘s official launch. Despite enjoying a surge in popularity in the past months due to the tycoon’s political and other exploits, many of these tokens experienced an immediate slump in value in favour of the more ‘authentic’ mem coin signed by CIC Digital LLC.

  • Fluctuating performance: within hours of TRUMP’s official presentation, the other Trump-themed coins showed a decline in trading volumes.
  • Possible consolidation: Some ‘unofficial’ projects may attempt rebranding or collaborate to distinguish themselves. However, competing with the original ‘Trump brand’ could be a complex challenge.

What happens now?

The media effect generated by this meme coin is already evident: Official Trump (TRUMP) has catalysed the attention of the press and social media, fuelling the debate on how political leaders can influence (and sometimes distort) crypto markets.

The following steps could concern:

  1. New exchange listings: capitalisation could increase further if $TRUMP were to land on high-volume trading platforms.
  2. Utility development: beyond the ‘meme’ dimension, the project could evolve with additional functionalities, such as staking, governance or synergies with the NFT world.
  3. Regulations: The hypothesis that a sitting US president publicly supports a meme coin raises several regulatory questions, especially given the propensity of some authorities to monitor digital assets closely.

What are meme coins

Memecoins are cryptocurrencies inspired by memes, jokes or viral internet phenomena. Unlike utility tokens, meme coins are often created to exploit the popularity of a meme or community. Two of the most famous examples are Dogecoin, created as a joke based on the Shiba Inu dog meme, and Shiba Inu, developed as a direct response to Dogecoin.

These cryptocurrencies are often launched with motives related to humour or the desire to ride a trend. Their value is mainly based on community support and speculation rather than real utility or technological innovation. The price of a meme coin is fuelled by the demand and hype of the moment, making it highly volatile.In conclusion, the launch of Official Trump (TRUMP) represents a unique case in the crypto landscape, with implications beyond the meme coin market. The main question remains whether this operation will set a new standard for using cryptocurrencies by political leaders and public figures or whether it will be just a controversial interlude in the crypto world.

The purchase of $TRUMP is highly speculative and carries a significant risk of loss. The value of $TRUMP is subject to high volatility and may fluctuate drastically over short periods. Please note: $TRUMP is a meme coin, a cryptocurrency based on an internet meme, and its value may be influenced by factors unrelated to economic fundamentals. The cryptocurrency market is largely unregulated, and buyers have limited protection in case of losses. The information provided in this newsletter does not constitute financial advice. You should consult a qualified financial advisor before making any purchase decision. Only invest what you can afford to lose, and fully understand the risks associated with cryptocurrency purchases, especially meme coins, before proceeding.

Posted on

USA Inflation: Today’s CPI Data

April and May 2024 FED meeting: forecasts, news and decisions

The Consumer Price Index (CPI), the key metric used to estimate inflation in the United States, has just been released. The fate of the markets hinges on US inflation and today’s Consumer Price Index (CPI) data. In this article, we will explore what CPI is and why it matters, as well as analyse the latest figures.

What is the CPI?

Technically, the Consumer Price Index (CPI) is a fundamental economic indicator that measures changes in the prices of goods and services we buy daily. In other words, the CPI tells us how much the cost of living has changed over time.

The CPI is calculated by gathering price data for a representative “basket” of goods and services typically purchased by consumers. This basket includes a variety of products, such as food, clothing, housing, transportation, education, healthcare, and other common expenditures. The US Bureau of Labor Statistics (BLS) collects this data monthly across 75 urban areas and compares it with previous periods.

Why is the CPI important?

The CPI is used to measure inflation, or how much the cost of living is increasing. If the CPI rises, it indicates that prices are increasing, meaning we need to spend more to maintain the same standard of living.

Bitcoin and the CPI: what’s the link?

Recently, the correlation between Bitcoin’s price and the inflation rate has been declining, largely because inflation has approached the 2% target and the Federal Reserve (FED) began cutting interest rates in September. Despite this, Bitcoin continues to demonstrate its value as a safe-haven asset and a hedge against inflation.

This connection became particularly evident after the approval of spot Bitcoin ETFs, as their recent performance highlights. These financial instruments have increasingly attracted attention to Bitcoin.

The last time this happened

When Bitcoin’s price plummeted due to turmoil in traditional financial markets, many investors sought refuge in more stable assets, leading to heightened BTC volatility. In such contexts, the Consumer Price Index becomes essential for understanding inflation trends and making informed decisions. A stable or declining CPI could foster a less uncertain economic climate, helping to reduce Bitcoin and cryptocurrency volatility.

Analysis of December 2024 CPI data

On 11 December 2024, the BLS released November 2024 CPI data. According to the report, the CPI rose by 2.7% year-on-year, aligning with expectations.

What do these numbers mean?

The 2.7% increase in the CPI indicates that inflation has slightly risen compared to the previous month. However, as this aligns with BLS forecasts, the rise is not currently a cause for concern. It remains to be seen whether the FED will pause its interest rate cuts during next week’s FOMC meeting (18 December) or proceed as planned.

Historical CPI data in 2024

Here’s a summary of CPI figures for recent months in 2024:

  • November 2024: 2.7% (expected: 2.7%)
  • October 2024: 2.6% (expected: 2.6%)
  • September 2024: 2.4% (expected: 2.3%)
  • August 2024: 2.5% (expected: 2.5%)
  • July 2024: 2.9% (expected: 3.0%)
  • June 2024: 3.0% (expected: 3.1%)
  • May 2024: 3.3% (expected: 3.4%)
  • April 2024: 3.4% (expected: 3.4%)
  • March 2024: 3.5% (expected: 3.4%)

The data shows that inflation consistently declined throughout 2024, only to rise slightly in the last month. Could Donald Trump’s upcoming inauguration as President in January 2025 shake things up further?

Stay tuned for updates and market insights!

Posted on

What is de-dollarisation? Are the BRICS challenging the dollar’s supremacy?

What is de-dollarisation? Is it coming?

De-dollarisation refers to the gradual reduction in using the United States dollar as the primary currency in global trade and financial transactions. Since World War I, the dollar has reigned supreme, acting as the cornerstone of the global financial system.

However, the situation may be shifting with increasing globalisation and the rise of economies once deemed emerging but now crucial to global GDP. What does de-dollarisation truly mean, and how could it reshape the global economic landscape?

What is de-dollarisation?

Joyce Chang, chair of Global Research at J.P. Morgan, explains:

“The notion that the dollar is losing its status as a reserve currency has gained traction, particularly as the world has divided into trading blocs following Russia’s invasion of Ukraine and the growing strategic competition between the United States and China.”

In the US, the idea of devaluing the dollar to maintain economic competitiveness has even surfaced during electoral debates. But is the dollar truly losing its grip?

De-dollarisation describes the decreasing reliance on the US dollar in international transactions and reserves, a trend that could undermine its dominance over global financial markets. Currently, most international loans and investments are dollar-denominated, but this status is only guaranteed to last for a while.

The forces driving de-dollarisation

Two main factors threaten the dollar’s dominance: internal and external pressures.

  1. Internal stability and US leadership
    The dollar’s status is closely tied to the United States’ economic, political, and military strength. Will the US maintain its position as the world’s leading superpower in the coming years? This is a question facing policymakers and the new US administration led by Donald Trump. Achieving this is far from certain, and any decline in US influence could erode confidence in the dollar.
  2. The rise of the BRICS nations
    Externally, countries within the BRICS group—especially China, India, and Russia—actively seek alternatives to dollar reliance. For instance, China’s push to stabilise and internationalise the yuan could make it a viable competitor. Similarly, Russia has already shifted to using roubles, yuan, dirhams, and rupees for oil trade, reducing its dependency on the dollar.

The impact of de-dollarisation

Understanding de-dollarisation also involves assessing its potential consequences for the global economy, particularly for the United States.

  • The shift in global power dynamics
    A diminished role for the dollar would irrevocably alter the balance of power among the world’s most influential nations. US financial assets, such as stocks and bonds, could experience slower growth, while yields on fixed-income assets like government bonds may rise due to declining demand.
  • US exports and inflation
    A weaker dollar could make US exports more competitive globally, potentially boosting manufacturing. However, it may also discourage foreign investment in the US and contribute to higher inflation as import costs rise.
  • Commodity markets
    This shift is already evident in the commodities market, where some nations are bypassing the dollar in favour of local currencies. Russia, for example, conducts oil trades in currencies such as the Chinese yuan, Emirati dirham, and Indian rupee.
  • Increased demand for gold and scarce assets
    A move away from the dollar could drive up gold prices, as central banks may prefer gold as a reserve asset. Similarly, other scarce assets like Bitcoin could become increasingly attractive for preserving value.

Is de-dollarisation imminent?

While the United States has seen its share of global trade diminish, this does not necessarily mean de-dollarisation is inevitable.

The decline in the dollar’s share among central bank reserves, especially in emerging markets, is not yet significant enough to justify major concerns. Key factors such as bank deposits, sovereign wealth funds, and foreign investments continue to support the dollar’s dominance. Moreover, the dollar remains central to global finance due to its deep capital markets and robust financial transparency.


Stay informed on the shifting tides of global finance with Young Platform.

Posted on

MicroStrategy Bitcoin Holdings: risks and opportunities

MicroStrategy stocks (MSTR) have become a unique market case closely linked to Bitcoin’s performance. But how sustainable is this strategy?

Under Michael Saylor’s leadership, MicroStrategy has transformed its business model to integrate Bitcoin deeply. As the largest corporate holder of Bitcoin, MicroStrategy has created a unique connection between its stock price (MSTR) and the cryptocurrency’s value. This article examines the risks and opportunities of this strategy and evaluates whether the approach can be sustained in volatile markets.

MicroStrategy’s Bitcoin holdings: a bold business model

MicroStrategy holds over 402,000 bitcoins, valued at approximately $38.3 billion. The company finances these purchases through innovative convertible bonds, allowing investors to convert bonds into shares or claim repayment at maturity. This model effectively positions MicroStrategy as a proxy for Bitcoin investments.

Key Highlights:

  • Convertible Bonds: These bonds help MicroStrategy raise capital for Bitcoin purchases without direct risk to investors.
  • Stock Price Multiplier Effect: Historically, MicroStrategy’s stock price has risen 3–5x relative to Bitcoin’s growth. For example, a 10% BTC increase could lead to a 30%-50% rise in $MSTR.

The link between MicroStrategy Bitcoin holdings and stock value

MicroStrategy’s stock performance reflects Bitcoin’s market trends. As of today, the company holds Bitcoin worth $36 billion, yet its market cap exceeds $83 billion. This multiplier effect makes $MSTR an attractive investment for those seeking leveraged exposure to Bitcoin.

Additionally, MicroStrategy recently announced a $42 billion Bitcoin purchase plan over the next three years, reinforcing its commitment to this strategy.

Risks of MicroStrategy’s Bitcoin strategy

Despite the impressive returns, this model is not without vulnerabilities. Below are the primary risks:

  1. Interest Rate Sensitivity: Rising inflation and interest rates could make financing through bonds more expensive.
  2. Bitcoin Price Drops: A significant BTC downturn could rapidly devalue $MSTR shares. For instance, a 10% BTC decline might trigger a 30%- 50% drop in MicroStrategy’s stock price.
  3. Unsustainable Debt: Failure to meet stock price targets could compel MicroStrategy to repay bondholders in cash, requiring it to liquidate Bitcoin holdings.
  4. Market Impact: Forced sales of Bitcoin could further depress BTC prices, creating a negative feedback loop that affects MicroStrategy and the broader crypto market.
  5. Systemic Risk: MicroStrategy holds 1.84% of all Bitcoins, and its collapse could destabilise the cryptocurrency ecosystem.

Can MicroStrategy trigger a crypto market collapse?

While an extreme scenario where MicroStrategy triggers a crypto market crash is conceivable, it remains unlikely. Bitcoin has become a resilient asset, and even if MicroStrategy faced significant challenges, the cryptocurrency market is robust enough to weather the storm.

In a more plausible scenario, MicroStrategy might experience a steep stock price decline without needing to liquidate its Bitcoin reserves. However, this would still serve as a cautionary tale for heavily leveraged strategies tied to volatile assets like Bitcoin.

Conclusion

MicroStrategy’s Bitcoin holdings strategy offers a high-risk, high-reward opportunity. For investors, $MSTR provides leveraged exposure to Bitcoin’s performance, but it also carries risks tied to market volatility and financial obligations. While the company’s bold approach has yielded impressive returns, potential vulnerabilities warrant careful consideration.

Bitcoin’s value might not hinge on MicroStrategy, but the inverse could hold true: MicroStrategy’s fate is deeply tied to Bitcoin.

Stay informed about cryptocurrency and stock market trends. Download Young Platform for free.

Posted on

Will the United States’ gold reserves be converted to Bitcoin?

Bitcoin News: Will the USA sell gold to buy BTC?

The latest Bitcoin news reveals that Senator Cynthia Lummis has proposed converting part of the USA’s gold reserves into BTC.

In recent days, the cryptocurrency landscape has been shaken by not only a dramatic price surge but also by significant news concerning Bitcoin, primarily from the United States. Wyoming Senator Cynthia Lummis has introduced a bill proposing the conversion of a portion of the U.S. gold reserves into Bitcoin.

If approved, this initiative could mark a historic shift in the economic and financial trajectory of the United States and the world.

A New Era for State Reserves

Senator Lummis’ proposal aims to create a “Strategic Bitcoin Reserve” for the United States by converting a fraction of the country’s vast gold reserves into BTC. Currently, the United States holds the largest gold reserves in the world, totaling over 8,000 metric tons. Germany ranks second with 3,352 tons, followed by Italy with 2,452 tons.

According to the latest financial report by the Bureau of the Fiscal Service, the U.S. holds approximately $5.4 trillion in assets, while liabilities amount to $42 trillion. Of this, $26.5 trillion represents public debt and its associated interest. Lummis’ proposal includes the accumulation of 1 million BTC for 20 years, aiming to support the dollar against its gradual and inevitable devaluation.

CTA: Buy Bitcoin today

A strategic Bitcoin reserve: Trump’s vision

The bill, widely discussed in Bitcoin news outlets, comes months after former U.S. President Donald Trump announced his intention to establish a “Strategic Bitcoin Reserve” to strengthen the country’s financial position. During his campaign, Trump accepted cryptocurrency donations, participated in Bitcoin 2024—the world’s premier cryptocurrency conference—and pledged to make the United States a global leader in blockchain technology.

Additionally, Trump has stated plans to dismiss Gary Gensler, the current chairman of the Securities and Exchange Commission (SEC), known for his regulatory stance against cryptocurrencies.

A historical parallel: Bretton Woods

This proposal recalls 1971, when the United States abandoned the Bretton Woods Agreement, effectively ending the gold standard. The introduction of a Strategic Bitcoin Reserve could serve as a “third chapter” in the Bretton Woods saga, established in 1944, heralding a new era in global monetary history.

It’s worth noting that since the abandonment of Bretton Woods in 1971, the U.S. dollar has lost approximately 98% of its value. Establishing an alternative asset or store of value to support the dollar might be necessary.

Buy Bitcoin Today

A global influence

The U.S. proposals are already impacting other nations. In Poland, Sławomir Mentzen, a candidate in the 2025 presidential elections, has pledged to create a Strategic Bitcoin Reserve if elected. A long-time cryptocurrency advocate, Mentzen revealed that he invested all his savings in Bitcoin in 2013, showcasing his confidence in its potential.

These recent political initiatives in the United States and Poland indicate the growing acceptance of Bitcoin as a state-level store of value. If implemented, these proposals could mark a turning point in global economic history, redefining the role of cryptocurrencies in the international financial system.

Posted on

The Department of Government Efficiency (DOGE) boosts Dogecoin’s popularity

department-government-efficiency-boosts-dogecoin-doge

Discover how Donald Trump’s new Department of Government Efficiency (DOGE) impacts the meme coin Dogecoin.

Donald Trump has officially announced a new governmental body named the Department of Government Efficiency (DOGE). The acronym, bearing a striking resemblance to the popular cryptocurrency Dogecoin, is no coincidence. This unexpected move highlights a growing trend where politics and meme culture intertwine, and the implications are worth exploring. Let’s dive into the political strategy behind this, its cultural significance, and its impact on the crypto market.

Meme politics meets cryptocurrency

Donald Trump and Elon Musk are no strangers to leveraging meme culture for attention and engagement. The creation of DOGE underscores how political leaders increasingly adopt internet-savvy strategies to resonate with younger, tech-savvy audiences.

Publications like the Harvard Business Review and Politico have examined this phenomenon, often called “meme politics.” By incorporating humour and recognisable symbols, leaders like Trump and Musk create a sense of belonging, particularly among non-conformist communities. The naming of DOGE—deliberately referencing the crypto world’s most iconic meme coin—perfectly aligns with this approach.

Why Dogecoin?

Dogecoin (DOGE), originally created as a joke, has evolved into a symbol of decentralisation and rebellion against traditional financial systems. With a market capitalisation exceeding $50 billion, Dogecoin recently outpaced legacy corporations like Ford in market value.

Trump and Musk’s decision to link their initiative to Dogecoin is not merely symbolic but strategic. The meme coin represents an opportunity to connect with a decentralised, grassroots movement that aligns with their political narratives’ ethos.

The Department of Government Efficiency: a radical vision

The Department of Government Efficiency, affectionately nicknamed DOGE, is more than a playful acronym. According to sources like The Washington Post, the department aims to reduce bureaucracy, slash public sector inefficiencies, and optimise government spending.

This initiative was spearheaded by Trump and Elon Musk, who had long advocated for “lean governance,” as reported by Bloomberg. Joining them is Vivek Ramaswamy, known for his success with Roivant Sciences, a biotech company celebrated for its resource-efficient strategies. Trump has likened this endeavour to a “Manhattan Project” for bureaucracy, underscoring the scale and urgency of the reform.

Dogecoin’s price surge: a familiar pattern

The announcement of DOGE has already significantly impacted Dogecoin’s value. Within days, its price doubled, climbing from $0.20 to over $0.40. This isn’t the first time Dogecoin has reacted to Musk’s or Trump’s activities. Previous instances include Musk’s tweets or the temporary rebranding of X (formerly Twitter) with Dogecoin’s logo.

Dogecoin, now ranked sixth by market capitalisation among cryptocurrencies, continues to gain momentum from this high-profile endorsement.

The future of DOGE and Dogecoin

Dogecoin’s rise reflects how politics and cryptocurrency are becoming increasingly interconnected. With Trump and Musk driving this narrative, it’s worth asking how far Dogecoin can go.

Stay tuned as DOGE, the department and the cryptocurrency, continues to make waves in politics and markets.

Posted on

Bull Market and Altseason in Crypto: How to Navigate and Maximise Potential

Bull Market and Crypto Altseason: How to Manage Them

What is a Bull Market and Altseason?

Navigating a crypto bull market and altseason can be both exhilarating and challenging for investors. Historically, these cycles have presented significant opportunities, but managing these favourable moments isn’t easy. This guide offers practical strategies to help you approach the bull market and altseason, helping you avoid common pitfalls driven by emotions such as greed and unchecked optimism.

Before diving in, note that while we reference historical data, past events may not replicate exactly in future cycles.

When do Bull Markets and altseasons begin?

Determining when a bull market or an altseason begins takes a lot of work. Typically, each cycle starts with Bitcoin’s price moving upwards, sparking widespread predictions. However, understanding the timing of a market cycle is often more valuable than chasing arbitrary price targets.

Key indicators to monitor include Bitcoin dominance, which reflects BTC’s market weight relative to other cryptos, and the ETH/BTC ratio, which compares Bitcoin’s performance to Ethereum. Another essential metric is the time elapsed since the last Bitcoin halving event, which often correlates with shifts in market phases.

The crypto market cycle and the role of Bitcoin halving

The crypto market cycle is closely tied to Bitcoin’s halving events, which occur approximately every four years. Halving halves the mining rewards, effectively reducing BTC’s supply growth. Each halving has historically set off a new cycle, usually lasting about 1,000 days. Peaks generally occur a year after the previous all-time high (ATH).

Bitcoin’s market cycles usually follow this structure:

  • Bull Market: A prolonged upward trend, with BTC leading initially.
  • Altseason: Often a sub-phase within a bull market where alternative cryptocurrencies, or “altcoins,” outperform Bitcoin.

Buy Bitcoin!

Key phases of a Bull Market

Everyone now knows that we are in a bull market. The price of BTC has just surpassed $90,000 and seems poised to continue rising. However, let’s take a look—drawing on historical data—at the main phases of past bullish cycles.

Phase 1: Bitcoin takes the lead

At the beginning of a bull market, Bitcoin typically absorbs the majority of new liquidity entering the market. Other cryptocurrencies, including Ethereum, often need help keeping up with Bitcoin’s explosive gains.

Phase 2: Ethereum gains momentum

Once Bitcoin’s price stabilises or reaches a local peak, liquidity matures into Ethereum. This marks the beginning of Ethereum’s outperformance relative to Bitcoin, often accompanied by gains in promising altcoins.

Phase 3: altseason begins

As Ethereum gains traction, confidence in higher-cap altcoins rises, igniting altseason. In recent cycles, altcoins with lower market capitalisations have experienced significant price increases during this period, driven by a renewed interest in diversifying beyond Bitcoin and Ethereum.

During the last bull market, the undisputed standouts were Solana (SOL), which rose by +1,200% from May to November 2021, and Avalanche (AVAX), which increased by +1,500% from June to December 2021.

Discover Young Platform

Phase 4: altseason peaks

The end of altseason often coincides with high-risk, explosive price movements in smaller, less established cryptocurrencies. This period is high in FOMO (fear of missing out) and requires caution. Once prices start to decline, it may signal the end of the bull market, and holding riskier assets can lead to substantial losses.

Why Ethereum often lags behind Bitcoin early in the cycle

Ethereum’s initial lag behind Bitcoin has become even more pronounced in recent cycles. This disparity is largely due to Bitcoin’s status as the most established and “safer” asset within the crypto space. During the early stages of a bull market, investors typically favour Bitcoin over altcoins, including Ethereum. This preference has been amplified with the launch of Bitcoin spot ETFs by major investment funds, enhancing Bitcoin’s appeal as a lower-risk investment.

A concept called “capital rotation” explains this pattern: initially, liquidity flows into Bitcoin, and as Bitcoin stabilises, investors begin to allocate funds to Ethereum and, later, other altcoins. For this reason, tracking Bitcoin dominance and the ETH/BTC ratio is crucial, as they often provide early signals of altseason onset.

Historical Timeline of Market Cycles

Examining the timing of previous cycles is helpful for effectively managing a bull market and all seasons. While exact patterns don’t repeat, they can offer valuable insights into potential timelines.

2017 Bull Market

  • Halving Date: 11 July 2016, BTC price at $650.
  • First ATH Post-Halving: 225 days later, on 21 February 2017, at $1,115.
  • Peak ATH: 297 days after halving, on 15 December 2017, at $19,000.
  • Overall Return: Approximately +2,800% from ATH to ATH.

2020 Bull Market

  • Halving Date: 11 May 2020, BTC price at $9,000.
  • First ATH Post-Halving: 216 days later, on 13 December 2020, at $19,200.
  • Peak ATH: 330 days post-halving, on 8 November 2021, at $69,000.
  • Overall Return: +259% from ATH to ATH.

2024 Bull Market

  • Halving Date: 22 April 2024, BTC price around $65,000.
  • First ATH Post-Halving: 195 days later, on 5 November 2024, BTC reached $80,000.
  • Speculative Projection: Bitcoin might reach the peak ATH for this cycle around September 2025 if history repeats.

Ethereum’s Timeline

Ethereum, launched in 2015, has less historical data, but in the previous bull market, it exceeded its ATH from January 2018 to January 2021. If the pattern holds, Ethereum could reach a new ATH soon.

Conclusion 

A disciplined approach to timing and strategy can be a significant advantage during bull markets and altseasons. Remember that while the crypto market tends to follow cyclical patterns, these cycles don’t guarantee identical outcomes. Tracking market indicators like Bitcoin dominance and the ETH/BTC ratio can be instrumental in spotting the onset of altseason. However, as the end of the cycle nears, it’s essential to reassess exposure to high-risk assets to avoid potential losses when the market reverses.

Stay mindful of these cycles, adapt strategies accordingly, and remember to balance optimism with caution.


Posted on

Donald Trump wins the 2024 election: a look at the new U.S. president’s agenda

Donald Trump's meme coin on Solana

Donald Trump is the new president of the United States

Donald Trump won the 2024 presidential election and returned to the White House. His decisive victory reflects a clear shift in American priorities, with voters drawn to his tough stance on immigration, expansive economic policies, and a more isolationist foreign policy. Trump will officially take office in January 2025, ready to lead with a strengthened Republican majority in Congress. Here’s a closer look at his win and what his administration could mean for America’s future.

How did Donald Trump win the presidency?

The U.S. electoral system is indirect, meaning American citizens do not elect the president directly. Instead, each state appoints a set of “electors” based on population. With 538 total electors nationwide, a candidate needs a majority—at least 270—to win.

In the U.S., most states operate under a “winner-takes-all” rule, meaning that the candidate who receives the majority of votes in a state claims all its electors (with Maine and Nebraska as exceptions). Key swing states—including Arizona, Georgia, Michigan, Nevada, North Carolina, Pennsylvania, and Wisconsin—played a critical role in Trump’s victory. Traditionally unpredictable, these states were ultimately decisive in the election outcome.

The role of swing states in Trump’s victory

Until election night, polling showed a close race, with neither candidate emerging as a clear frontrunner. However, in the early morning, Trump claimed enough swing states to clinch victory. With its 19 electoral votes, Pennsylvania was particularly important, where Trump won by a slim 2% margin. He also secured North Carolina with 51% and Georgia with 50.7%.

Currently, as votes are still being counted in a few remaining states, Trump has a solid lead with 266 electoral votes to Kamala Harris’s 219. He is also leading in other key states, meaning a Trump presidency is almost certain.

Key policies in Donald Trump’s agenda: immigration, economy, and foreign affairs

Now that Trump is set to lead, his platform promises significant changes. Americans voted for a shift in direction, so what does Trump’s agenda entail? His policies have been designed to appeal to a conservative base and are likely to have a broad impact given the Republican majority in Congress. This means he will have substantial freedom to enact his plans, both economically and socially.

Immigration: tighter policies and enforcement

Trump has pledged to take strong action on immigration, a top concern for 61% of Americans. His rhetoric on the campaign trail has been strict, portraying immigrants as a source of crime and economic burden. Trump’s vice president, J.D. Vance, has even suggested that the administration could pursue one of the largest deportation plans in recent history. This policy could lead to a major crackdown on immigration, though Trump will need to consider constitutional protections.

Economy: protectionist policies and crypto-friendly initiatives

On the economic front, Trump has promised protectionist policies, including tariffs aimed at reducing dependence on foreign goods, particularly from China. His approach could lead to what some experts call a “trade war,” potentially impacting international markets and raising prices domestically, which could further strain inflation rates.

Trump’s stance on cryptocurrencies, particularly Bitcoin, has drawn attention. His administration has hinted at using U.S.-held Bitcoin reserves to bolster the national economy and supporting BTC mining in the U.S. The initial market reaction has been positive, with Bitcoin surging to an all-time high of $75,000 following the election news. Some states, like Florida, have already supported Bitcoin, proposing to include it in public pension funds. Other areas, like Michigan and Wisconsin, have begun to invest in Bitcoin ETFs.

Foreign policy: a shift toward isolationism

Regarding international relations, Trump’s foreign policy is expected to take an isolationist approach. He has indicated that he may scale back economic support to Ukraine, potentially destabilising U.S. relations with NATO allies. During Biden’s presidency, the U.S. gave Ukraine approximately $174 billion in aid. Trump’s stance could mean a significant shift, reducing American involvement in global conflicts and focusing on domestic priorities instead.

Trump’s administration has also signalled support for Israel in the Middle East but may reduce the scope of U.S. involvement. His approach could reshape U.S. alliances, especially in Europe, where many countries rely on U.S. support for strategic stability.

What’s next for Trump’s America?

As Donald Trump prepares to re-enter the White House, America is set for substantial changes. His policies on immigration, the economy, and foreign relations reflect a bold vision aimed at strengthening U.S. interests and security, albeit with potential challenges in terms of international diplomacy and market stability.


Stay updated on the latest in U.S. politics and policy changes with Young Platform, where expert insights keep you informed about key developments in America and beyond.


Posted on

The Fed cut interest rates by 25 basis points

meeting-fed-2024-november

The FED meeting on 7 November: the US central bank cut rates by 25 basis points. Discover the impact on markets and future rate expectations

The Federal Reserve met on 7 November 2024 to decide on interest rates. Since the FOMC did not meet in October, what happened after the 50 basis point cut in September? Could the combination of Donald Trump’s victory and the reduction in the cost of money further boost the price of Bitcoin?

Buy Bitcoin!

Economic indicators are influencing Fed decisions.

Before analysing what happened at the 7 November 2024 FED meeting, it is good to list the economic indicators that the US central bank assesses before deciding on interest rates.

One of the main objectives of the Fed’s monetary policy is to contain inflation. When prices rise excessively, the central bank raises interest rates to curb and stabilise demand. From August to October, the consumer price index (CPI), the main indicator used to estimate inflation, fell 50 basis points to an annual rate of 2.4 %, down from 2.9 %. 

This slowdown in inflation was made possible by the restrictive monetary policies implemented by most Western countries in the past two years. Since, today, the situation seems to be under control, central banks are proceeding with progressive interest rate cuts in order to stimulate the economy after having previously cooled it down.

Employment and, thus, the health of the labour market also plays an important role in the Fed’s decisions. In recent months, the unemployment rate has been stable at around 4.2%, but if it had risen, it would have been necessary to intervene with a tighter plan of interest rate cuts. However, since this did not happen, the Fed could, and probably will, proceed gradually.

Finally, when the Fed decides on interest rates, it also considers Gross Domestic Product (GDP). Excessively fast economic growth may fuel inflation, while weak growth may suggest the need for economic stimulus, such as rate cuts. In October, economic growth in the US slowed, and the Fed responded with a 25 basis point rate cut.

Has the election of Donald Trump affected rates?

The election of Donald Trump did not affect the Federal Reserve’s November meeting, whose decision was in line with expectations on interest rates. Some experts thought that the FED might leave rates unchanged given the new US president’s willingness to apply tariffs on goods from abroad, particularly from China, which might raise inflation again in the future.

However, the majority still expected a 25 basis point cut, which, in fact, happened. Polymarket, the crypto world’s leading prediction market, effectively summarised the consensus view, which, as with the presidential election, guessed correctly.

Gregory Daco, Chief Economist of Ernest Young, one of the world’s leading consulting firms, was also of this view, stating on Wednesday: “Declining inflation and wage and productivity growth should favour a gradual recalibration of the Fed’s monetary policy with a 25 basis point rate cut after the election.”

November 2024 FED meeting: the impact on the market

It is very difficult to estimate the possible impact of the rate cut at the Fed’s meeting on 7 November 2024, mainly because it comes after the two most important days of the year. Wednesday saw the conclusion of the US elections, in which Donald Trump emerged as the winner, who will return to Capitol Hill after the Democratic interlude of the last four years.

Had Kamala Harris won, the situation would probably have been different. Still, the Republicans in power from January onwards will be the ones who have also won a majority in Congress. What has happened and all the promises associated with a new Trump mandate have caused the price of major assets, especially Bitcoin and Tesla shares, to explode upwards. Less than twenty minutes after the opening of the markets, spot ETFs on Bitcoin recorded $1 billion in volume, while on the day of 7 November, the absolute record of capital inflows was $1.38 billion.

Join Young Platform

However, the last word has yet to be said. Regarding the crypto world, what happened this week seems to have rekindled the bull market, which was abruptly interrupted in April after the all-time highs (ATH) were reached—historical highs which, again, have been updated in recent hours. Analysing the stock market, one can see that the main indices, above all, the S&P 500 and NASDAQ, have been recording bullish price movements at a very sustained pace for quite some time.

In short, the million-dollar question related to the FED meeting on 7 November is one: will the interest rate cut make the markets rise further, especially Bitcoin? Or will the major assets slow down after the bull run of the last few days?