Thus far, Bitcoin has had a pretty unconventional bull market, and we’re probably still far from the blow-off top that will send the entire crypto market into a new bear phase.
In early 2024, we saw the first Bitcoin spot ETFs approved in the US, thanks to BlackRock’s strong lobbying. Much of the approval rally was already priced in, but once the ETFs went live, they started accumulating heavily, pushing BTC well past its 2021 ATH.
Then came the correction, lasting until Q3 of 2024. But once Trump got elected, the market rallied hard again—his stance on crypto was clear: if he won, he’d be the most crypto-friendly US president ever. The day he actually took office turned into a “sell the news” event, and we’ve been correcting ever since.
The signing of the Bitcoin Strategic Reserve executive order briefly pushed BTC off the abyss ($77K), but the pump was short-lived. Another “sell the news” moment, I guess.
I was talking to my dad on the phone today, telling him that crypto needs fresh bullish news to keep the momentum going, and...
Two hours later, boom: Russia's Central Bank announced it will allow limited crypto purchases for investors. Bitcoin reacted instantly, pumping a couple of thousand dollars in just minutes. I don’t think we’re out of the woods yet, but damn, this is huge.
Long story short...
Russia is set to allow limited Bitcoin and crypto purchases, classifying them as property while exempting mining and crypto sales from VAT. Mining operators must report to tax authorities, and mined crypto is considered non-monetary income.
Crypto transactions will be subject to a two-stage income tax. This move signals Russia’s growing interest in digital assets, aligning with global trends in the US and EU. It remains to be seen if Russia will follow the US in establishing a Strategic Bitcoin Reserve.
source
Many were disappointed by the market’s weak reaction to the Bitcoin Strategic Reserve Act, simply because they didn’t fully grasp its long-term implications for Bitcoin at a state level. In the coming months, we’re likely to see FOMO levels similar to what we witnessed when US ETFs got approved.
We might revisit $77,000—who knows? But one thing’s certain: if the US does it, the rest of the world follows. Despite the initial lukewarm response, I believe this act will snowball into something massive.
This space isn’t for cypherpunks anymore, and the market doesn’t move in a straight line.
Write that down.
Thanks for your attention,
Adrian
