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— Keeping a close eye on crypto news so you don't miss the next 2009

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🌐 2024 Highlights: China vs. the US in the AI Race

Over the past 18 months, China has significantly narrowed the gap with the US in artificial intelligence development.

📊 Facts and Figures:

⚪️ In 2023, China lagged behind the US by 30.12% in the race for leadership in LLMs (SuperCLUE benchmark).

⚪️ By October 2024, the gap had shrunk to a record 1.29%, but OpenAI’s new model, OpenAIo1, widened it back to 8%.

⚪️ In the open-source domain, China not only caught up but surpassed the US in tests conducted in Chinese.

🇨🇳 Key Achievements by China:

1️⃣ Open-Source Models Leading the Way: Chinese Qwen2.5-72B-Instruct scored 68.90 points on SuperCLUE, nearing the performance of the top closed-source models.

2️⃣ Model Diversification: The top three leaders remain US models, but they are closely followed by three Chinese models outperforming Google DeepMind Gemini.

3️⃣ Resource Optimization: Despite US export restrictions on advanced chips, China has achieved remarkable results by focusing on medium-complexity tasks.

💡 Insight:

China has proven that "money doesn’t solve everything" in AI development.

Through strategic adaptation and resource optimization, the country has significantly bolstered its position.


Bottom Line:

The AI leadership race remains a showdown between two giants.

The US maintains its lead in top-tier models, but China demonstrates strength in open-source and shows that restrictions can be overcome.

The path to AGI is becoming increasingly competitive, with 2024 marking a pivotal year in this technological contest.


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🖥 Cryptocurrency Investment Market: Inflows of $48 Million This Week 📈

Last week, digital assets faced macroeconomic challenges, resulting in mixed outcomes for crypto funds.

📊 Key Facts:

Bitcoin: Inflows: $214 Million

Later in the week, outflows occurred; nevertheless, Bitcoin remains the leading asset with total inflows of $799 million year-to-date.

Ethereum: Outflows: $256 Million

Reason: General sell-off in technology stocks, no specific issues with the asset observed.

Solana: Inflows: $15 Million

Unlike Ethereum, Solana did not experience the same pressure.

XRP: Inflows: $41 Million

Reason: Increased optimism ahead of the SEC appeal deadline on January 15th.

Altcoins (Excluding ETH): Inflows: $48 Million

Notable inflows in Aave ($2.9 million), Stellar ($2.7 million), and Polkadot ($1.6 million).

📉 Weekly Summary:

Total Inflows for the Week: $48 million.

Net Outflows for the Week: $75 million.

Impact: Macroeconomic data and Federal Reserve protocols affected investor confidence.

🌐 Regional Focus:

USA: Major inflows focused on Bitcoin and XRP.

Europe and Asia: Investors exhibit caution due to macroeconomic instability.

📈 Market in Numbers:

- Total Market Capitalization of Digital Assets: Decreased by approximately 7.5%.

- Trading Volumes: Remain under pressure due to changes in monetary policy.

📈 Forecast:

Despite current outflows, the long-term prospects for Bitcoin and other crypto assets remain positive thanks to institutional investments and an improving regulatory environment.

The cryptocurrency market continues to respond to macroeconomic changes and decisions by the Federal Reserve System.

Investors should continue to monitor economic indicators and regulatory developments that may impact market movements.


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📊 CryptoRank 2024 Report: The Crypto Investment Market Amid a Bullish Trend

The year 2024 turned out to be significant for the cryptocurrency market, even though fund-raising results were moderate.

📊 Crypto Fundraising Growth But Not as Impressive

Crypto projects raised $16.1 billion, a 53% increase over 2023, but that growth looks modest in the context of a bullish market.

For comparison, global venture investments totaled $368.5 billion, with crypto venture projects making up only 4% of that volume.


📊 Stagnation and Muted Expectations: The total number of funding rounds grew by 28.5%, but that doesn’t fully offset stagnation in the sector.

📊 Two Ways to Address the Issue

1️⃣ Reducing startup valuations: Venture capitalists can manage project valuations during funding rounds, affecting future market capitalization.

2️⃣ Achieving higher capitalization: Initial valuations can create more stable projects with long-term growth potential.

📊 Round Sizes and Jurisdictional Trends

Later-stage investments are fewer, and round sizes remain consistently low — most deals range from $1 million to $10 million. However, improved regulations in the U.S. could become a catalyst for crypto projects.

📊 Convergence of AI and Blockchain

AI and blockchain continue to merge, creating new opportunities for decentralized applications with enhanced privacy and scalability.

AI technology is becoming crucial in the crypto ecosystem, including projects like Sentient and Fraction AI.


📊 The Future: Metaverse and Blockchain Gaming

Blockchain-based gaming and metaverses remain in the spotlight.

Projects like Alliance Games and Overworld pave the way for mass adoption, using tokenization and NFTs to power innovative in-game economies.


📎 Conclusion

In short, 2024 demonstrated that despite a bullish market, crypto fundraising faces challenges that require strategic solutions for sustainable growth.

At the same time, AI integration, Bitcoin-based DeFi, and specialized blockchains are opening new frontiers for innovation and scalability.


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💸 JPMorgan: 4 Reasons Why Bitcoin Will Outperform Other Cryptos in 2025

Rumors are circulating that 2025 will be the year of altcoins, but JPMorgan disagrees.

Here’s why:

1️⃣ Policy and Regulation Remain Uncertain

Future policies remain speculative, with the timing and impact of new regulations still in question.

Meanwhile, ambitious plans to develop crypto reserves in the US and beyond are likely to focus exclusively on Bitcoin.

Some US states are already pushing bills to start stockpiling Bitcoin as an inflation hedge—a concept that Washington could embrace during Trump’s second term.


2️⃣ Bitcoin Dominates the Crypto Fund Segment

Bitcoin remains the primary focus for investors.

According to JPMorgan, Bitcoin accounted for 35% of the total $78 billion inflows into the crypto market in 2024.

In comparison, spot Ethereum ETFs have only accumulated around $2.4 billion since their launch in July.


3️⃣ The Bitcoin Network Becomes a Competitor to Tokens with More Defined Use Cases, Such as Ethereum

Bitcoin is expanding its capabilities, including support for smart contracts, allowing it to compete with tokens like Ethereum.

4️⃣ New Altcoin Projects Require Time to Develop

Decentralized initiatives often experience a rapid decline in activity after initial hype-driven success, reducing their value.

For long-term success, projects must prove their practical application benefits.


Additionally, it is noted that MicroStrategy has only halfway completed its plan to invest $42 billion in Bitcoin.

Their purchases have become significant support for the token, accounting for 28% of crypto inflows last year.

📁 JPMorgan’s Conclusion:

Bitcoin continues to be the main driver of the crypto market, with higher growth prospects in 2025 compared to altcoins.

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🇺🇸 Will Trump distribute $TRUMP tokens to US citizens?

The former CTO of Coinbase proposed that Trump distribute some $TRUMP tokens to every US citizen.

His idea: give $100 worth of TRUMP tokens to each of Trump’s 77 million voters via an airdrop.

Of course, this is highly unlikely, but amidst the upcoming inauguration, a more realistic piece of news has emerged: 1,000,000 USDT in #TRUMP tokens will be given away by the well-known exchange OKX.

🇺🇸 How to participate in the promotion?

⚪️ Register on OKX using this link (+ bonuses)

⚪️ Complete KYC verification

⚪️ Click "Join" on the promotion page

🇺🇸 Participation conditions for new users:

You need to deposit at least $100 in any assets

Achieve a trading volume of +$100 in the TRUMP/USDT pair

Prize pool: 700,000 USDT in TRUMP/USDT tokens

⚪️ Conditions for all users:

Achieve a trading volume of $300+

Prize pool: 300,000 USDT in TRUMP/USDT tokens

The promotion will run until February 4 at 00:00 GMT.


Rewards will be distributed within 14 business days after the promotion ends.

You can find more detailed conditions here.

The best part is, you don’t need to be a US citizen to participate in the giveaway by the renowned OKX exchange.


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📁 Weekly Crypto Updates: What’s New?

Below are the main events in the crypto world over the past week:

1️⃣ US Consumer Price Index (CPI) Exceeds Forecasts

December’s CPI rose by 0.4% month-over-month (the forecast was 0.3%).

The annual increase hit 2.9% — marking the third consecutive month of growth, the highest since July 2024.

2️⃣ Trump Meets Founders of Leading Crypto Projects

President Donald Trump plans a series of executive orders supporting the crypto industry:

⚪️ Establishing a Bitcoin reserve
⚪️ Ending “debanking”
⚪️ Appointing “pro-crypto” officials

One proposal that caused a stir is a strategic “America First” reserve, prioritizing digital assets of American origin (Solana, USD Coin, Ripple).


3️⃣ Court Ruling in the “Hush Money” Case: Trump Freed Without Fine

The New York State Supreme Court found Trump guilty on 34 counts but released him without conditions, citing the importance of transferring presidential power.

4️⃣ 24-Member Advisory Council on Cryptocurrency

Trump’s team proposes creating a council to regulate cryptocurrencies, draft legislation, and implement the Bitcoin reserve.

Plans include close coordination with the SEC, CFTC, and the US Treasury to foster a crypto-friendly environment.


5️⃣ The New SEC Prepares for Major Reforms

Review of previous crypto cases, possible freezing or withdrawal of non-fraud-related lawsuits.

6️⃣ South Korean Authorities Suspend Upbit Exchange

South Korea’s FIU issued Upbit a notice of suspended operations for up to six months over alleged AML and KYC violations.

New users may be temporarily barred from withdrawing assets.

A final decision will be made on the 21st after a hearing.


7️⃣ Coinbase Resumes Bitcoin Lending via Morpho Protocol

US users (excluding New York State) can take out loans secured by BTC.

This is Coinbase’s second attempt after shutting down its program in 2023 due to SEC complaints.

Clients bear the risk of liquidation and interest rates, but Coinbase covers network and lending fees.


8️⃣ Santander Bank: El Salvador’s Tourism Up 22% Thanks to Bitcoin

According to a Santander report, 3.9 million tourists visited the country in 2024 — a 22% increase from the previous year.

Most visitors came from the US, drawn by interest in Bitcoin payments.

9️⃣ First “Crypto Gala” Scheduled for January 17 in Washington

The event, called “Crypto Ball,” coincides with Trump’s inauguration.

Crypto “Czar” David Sacks will host, with co-organizers BTC Inc., Kraken, Coinbase, and others.

MAGA Inc. then plans a VIP reception at $100,000 or $1 million, including dinner with Trump.


1️⃣0️⃣ NFT Market in 2024: Record-Low Volumes

NFT trading volume dropped 19% year over year, and sales fell 18%.
Volume for Q3 declined to $1.5 billion from $5.3 billion at the start of the year, recovering only slightly at the end of 2024.

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📈 $2.2 Billion Inflow Driven by “Trump Euphoria”

Last week, digital assets set a new inflow record, reaching $2.2 billion — the highest figure since the beginning of 2025.

Total assets under management (AuM) exceeded $171 billion for the first time, while year-to-date (YTD) cumulative investments grew to $2.8 billion.

📊 Key Facts:

Bitcoin: $1.9 billion inflow, bringing the total since the start of the year to $2.7 billion. Interestingly, despite positive price movement, there were small outflows from short positions (only $0.5 million).

Ethereum: +$246 million for the week, offsetting previous outflows, but still weaker than others in total 2025 flows.

XRP: +$31 million for the week, and a hefty $484 million since mid-November 2024.

Stellar: +$2.1 million. No significant changes for other altcoins.

🌐 Regional Focus:

USA: Dominates with $2 billion.

Switzerland: +$89 million.

Canada: +$13 million.

📈 Market Figures:

AuM: $171 billion — a historic high.

ETP Trading Volume: $21 billion, equating to 34% of the total BTC trading volume on verified exchanges.

📎 Conclusions:

The market is being propelled by “Trump euphoria,” prompting a massive shift of investors into digital assets.

Despite the growth, many continue to watch short positions and the dynamics of altcoins.

The long-term outlook remains positive, though new administrative decisions and macroeconomic signals could introduce adjustments.


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🟠 What Does the Binance CEO Think About the Crypto Market in 2025?

CNBC invited Binance CEO Richard Teng for an interview to discuss the future of the cryptocurrency market in 2025.

The interview took place at the World Economic Forum in Davos (Switzerland).

🔸 What’s Next for the Crypto Market in 2025?

Teng noted that the crypto market will reach a new record high, buoyed by positive regulatory changes in the US under the new President, Donald Trump.

More clearly defined regulations will help drive market growth.

“Looking at past cycles, this year we will see a new record for the crypto industry,” Teng said.


🪙 His View on Bitcoin

As evidence, he cited Bitcoin surpassing the $100,000 mark, which sparked optimism among crypto traders.

BTC will renew its ATH (all-time high) in 2025. The main catalyst for the crypto market’s growth will be the policies of the new White House administration, providing a clearer regulatory framework.

“The narrative around cryptocurrency has changed significantly.”

Teng noted that he’s now hearing much more positive sentiment about cryptocurrency from political and corporate leaders.

He expects progress in the US on several fronts, including token issuance, trading, and asset management.


🟠 Bottom Line

According to the Binance CEO, Trump is capable of bringing “certainty” and “recognition” to the crypto sector.

He also has no doubt that a strategic Bitcoin reserve will be created in the US.

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💸 Question #1: Strategic $BTC Reserve in the U.S.

One of the most pressing issues right now: will the project for a Strategic #BTC Reserve be implemented or not?

Let’s break down the key features of this proposal and why it’s so important.

1️⃣ What is a Strategic Reserve?

A strategic reserve refers to stockpiles of critically important resources that a government can quickly mobilize and use in emergencies or crises.

Example: The U.S. Strategic Petroleum Reserve, the largest government-controlled oil storage system in the world (700 million barrels). It was created in 1975 by Congress in response to the 1973–1974 oil embargo.


2️⃣ How will the U.S. accumulate its Bitcoin reserve?

Although no official strategy has been presented yet, there are three likely mechanisms for accumulation:

⚪️ Confiscated cryptocurrency from criminals: Currently, this accounts for approximately 200,000 BTC, worth around $21 billion.

⚪️ Issuing an executive order to use the Exchange Stabilization Fund (ESF): Managed by the U.S. Treasury.

⚪️ Selling gold or issuing new debt to purchase Bitcoin on the open market: This is considered the least likely scenario.

3️⃣ Potential scale of purchases: 1 million BTC

The most specific proposal for a Bitcoin reserve being discussed in Washington comes from Republican Senator Cynthia Lummis, who personally owns 5 BTC.

Her bill suggests that the U.S. Treasury purchase 200,000 BTC annually over five years, resulting in a total reserve of 1 million coins (about 5% of all Bitcoin).

Funding would come from Federal Reserve profits and gold sales, with a minimum holding period for the Bitcoin set at 20 years.


4️⃣ Which states support the creation of a reserve?

Currently, 12 states are ready to back this initiative:

Florida, Alabama, New Hampshire, Pennsylvania, Ohio, North Dakota, Oklahoma, Texas, Wyoming, Massachusetts, Utah, and Arizona.

5️⃣ Advantages and risks of the reserve

Trump believes that a Bitcoin reserve would help the U.S. secure a leading position in the global BTC market and counter China’s influence.

Supporters argue that holding a Bitcoin reserve — an asset they believe will appreciate over time — would enable the U.S. to reduce its budget deficit without raising taxes, while strengthening the dollar.

However, risks include the high volatility of the asset.


Conclusion: Trump's plan for a strategic Bitcoin reserve faces significant obstacles, particularly in securing funding for BTC purchases.

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