💹 Trump Will Get BTC Back Over $100K (And More)

PLUS the AI ecosystem on Base and everything else AI related!

January 14, 2025

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GM.

And a GM it is, especially after yesterday. If there’s one thing to remember about the crypto markets, it’s that once the sentiment gets to either extreme, it’s time to start pushing buttons.

On yesterday's timeline, doubts about the health of this crypto cycle started to become very palpable, and just like that, we (hopefully) marked the bottom. Once again, we’re holding above $90k, inside the same good old range, with a powerful reaction just slightly below the ninety-keks mark. If you were reading the newsletter these past few weeks, you weren’t alarmed.

Was it really the bottom? January's historical data would definitely underscore that thesis. You can review them here.

Onto today’s business: today’s green in the market is solidified by dovish PPI data that just came out, which hit especially nice since there’s a lot of focus coming back onto the macro side of things—more on this in Luke’s corner below.

Not only that, just hours after yesterday’s bounce, we saw an avalanche of bullish news tied to crypto and Trump.

First, Trump is expected to repeal the crypto accounting policy requiring banks holding digital assets to count them as liabilities. Second, David Sacks and Trump are finalizing the crypto executive strategy and are expected to issue crypto-related orders on day one of Trump’s presidency. Third, an actual crypto ball will be held on January 17th to celebrate the first “crypto president.” 

If you’re still somehow worried about the future of crypto, look at this Bitcoin hashrate chart and then check out this news piece about Meta planning to use some of its $75 billion liquid reserves to start buying BTC.

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DXY 1D

DXY, which is USD measured against a basket of global currencies - tends to go up when Bitcoin is going down. It’s the TradFi equivalent of ‘stabling up’. When times are bearish, you want to ‘go to cash.’ When times are bullish, you dump your dollars and buy risk. 

Recently (since the September ‘24 BTC low), we’ve been living in the upside-down of DXY pumping and BTC pumping alongside it - instead of the usual inverse correlation. The Trump Pump is what I’m talking about.

Crypto repriced higher as the likelihood of the first crypto-friendly president increased. This has been such a significant bull catalyst that DXY  running hot has not had the usual bearish effect.

All that is not to say that it won’t have the opposite effect (pump our bags)  when it finally sells off. The tweezer top on the 1D chart above suggests that this is technically imminent.

A strong dollar gives Trump a great base from which to negotiate tariffs when he enters the White House. Those negotiations will very likely lead to a weaker dollar. It’s the only way to pump markets, which is a big to-do item for the returning president.

Come by the Lucky Luke Discord channel for comments, to roast my picks or to pump your own bags. All banter is welcome any time!

Current pre-TGE mindshare.

Smart money movements of the day.

Source: ChainEdge

Base L2 is going full AI.

Is the next AI season happening on Base? Jesse Pollak certainly thinks so. Might be time to pull out the good old dexscreener with a Base filter on and be on a watch out here.

AI Corner

There are big bounces across the agent meta today.

My AI16Z accumulation is green today and looking promising for a return to the highs. Apparently, Shaw's tweets are to blame again for the sell-off. Every time this happens I buy the blood and I don’t even get to see the offending Twitter outbursts. It seems they’re deleted by the time I wake up.

$AVA is looking strong - I’m in the midst of a Meal Deal Quick Bites write-up on Holoworld, the parent protocol. $AVA is the mascot agent mentioned here recently.


I bought Hype3 today - the ticker is $COOL - small cap ($5m), high risk, but also up a bit today- look for a pullback if you’re interested. They’re building an IP x AI framework. There is a good thread here summarising recent spaces.

New content to study.

New AI projects & updates.

  • Ai16z (AI) - Releases the Eliza whitepaper

  • INFINIT (DeFAI) - Abstraction layer now upgraded to DeFAI

  • Kanzz AI (AI agents)

  • imgnAI (AI) - Announces PumpNai launch

  • Compass Labs (AI) - Announces AI agent news for Compass

The important bits.

  • Nillion (First blind computer) - Features in Messari research report

  • Zentry (Gaming) - Delegate your nodes with 0% fees on Nodeswift

  • HMX (Perpetual DEX) - Achieved the No. 1 rank in 24h and 7 day volume on Arbitrum

  • Sophon (Entertainment layer) - Finish KYC by the end of today and receive full rewards

  • Peapods Finance (DeFi) - Features a Leveraged Volatility Farming explainer video

  • Tannsi (Infrastructure) - Explain how building decentralized networks with Tannsi works

  • Core DAO (BTCFi) - Announces new Core Ignition Drop leaderboard

  • Liquity (DeFi) - Announces V2 for January

  • Synthetix (DeFi) - Phases out V3 perps

  • Story Protocol (DeFi) - Announcing our collaboration with Stability AI

  • GammaSwap (DeFi) - Announces geETH

Even more important bits.

Charts and stats of the day.

Life gets busy so here’s what you’ve missed.

The Future of Bitcoin Meme Coins: Insights from Farmer Joe from Pups

Podcast

Jedi interviews Farmer Joe, the founder of the Pups token. They explore Pups' origins, the community's role in its growth, and the future of Bitcoin meme coins.

Tune in on Spotify | YouTube →

To save you doom scrolling.

One day when you make it, don’t let anyone tell you that you got lucky.


CZ managed to predict a drop from above $100k BTC just recently. Let’s hope this prediction from 2020 won’t materialize.

Or maybe let’s do hope because, all in all, it would only mean more opportunity.

stay safe homies,

Hix0n 🫡

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