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Donald Trump at the 2024 Bitcoin Conference in Nashville, TN. (Photo by Johnnie Izquierdo for The Washington Post via Getty Images)
The Washington Post via Getty Images
BITCOIN CLAWS BACK ABOVE $105,000
Bitcoin just powered its way to a 2025 high, leaping past the $105,000 threshold on Friday and erasing a slump that briefly knocked it under $90,000. The rebound is fueled by hopes that President-elect Donald Trump will flip the U.S. script on crypto once he’s sworn in Monday.
Trump’s campaign promises included turning America into a global crypto leader, complete with a national bitcoin stockpile—a radical departure from the clampdowns of Biden’s administration. He’s reportedly preparing an executive order to declare digital assets a policy priority and set up an advisory council stocked with industry insiders.
Trump has quickly become the crypto world’s new best friend, snagging donations from Circle, Ripple and other large companies for his inaugural committee. They’re even throwing a “Crypto Ball” in D.C. on Friday, a sign that the industry’s influence on Capitol Hill has never been stronger.
XRP REACHES NEW ALL-TIME HIGH
XRP, the token linked to Ripple Labs and the third-largest cryptocurrency, climbed nearly 40% this week to a record $3.4, eclipsing the performance of every other major digital asset this month. Its market capitalization now sits at about $190 billion, driven by optimism that the Trump administration could adopt friendlier crypto policies.
Ripple CEO Brad Garlinghouse recently told the New York Times that he had dinner with Trump at Mar-a-Lago and encouraged creating a federal stockpile of cryptocurrencies, including XRP. Ripple just launched RLUSD, a new stablecoin on both the XRP Ledger and Ethereum. Talk about doubling down.
-San Francisco-based Ripple Labs was sued in 2020 by the SEC, which claimed the company was offering unregistered securities. A U.S. district court ruling found that XRP is considered a security when sold to institutional investors but not to retail investors, which the crypto industry viewed as a partial win. The SEC is appealing the decision, but with a more crypto-friendly SEC chair expected to take the helm, that appeal’s future might be shaky.
COINBASE TAKES ANOTHER SWING AT BITCOIN-BACKED LOANS
Coinbase has once again flung open the door to bitcoin-backed loans. U.S. customers (except those in New York) can now borrow up to $100,000 worth of stablecoins (USDC) through a lending protocol Morpho on Base, a blockchain developed by Coinbase.
Your bitcoin gets wrapped into “cbBTC,” shipped off to Morpho, and then some USDC appears in your Coinbase account. All in less than a minute, supposedly, with standard DeFi disclaimers: these loans must be over-collateralized, and interest rates change with the market’s swings. If your loan creeps up to 86% of your collateral’s value, your bitcoin could be liquidated to cover the outstanding balance and a penalty fee. But for faithful bitcoiners, this might be worth it. Selling now—when bitcoin is up 146% over the past year—would mean triggering a tax event.
Coinbase tried a version of this scheme back in 2020 with its Borrow program, only to shelve it for retail clients in 2023 when it didn’t pick up steam. This new version adds some DeFi zest, with plans to expand collateral types and open to more markets.
ELSEWHERE:
Pension Funds Dabble In Crypto After Massive Bitcoin Rally [Financial Times]
Some U.S. Banks Warm Up To Crypto Firms [The Information]
The Crypto Industry Is Throwing a Party in DC for Trump [Bloomberg]
