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Yahoo
a day ago
- Business
- Yahoo
Chart of the Week: Wall Street's 'Infinite Money Glitch' Moves From Bitcoin to Altcoins
Wall Street has long mastered the creative art of turning complexity into a money-printing machine. How do they do it? Financial engineering — an art of structuring debt, equity, and derivatives to squeeze out returns in ways that often defy convention. It's a playbook that made fortunes — and nearly broke the system in 2008. Now, this complex engineering of money has entered the crypto market. With Wall Street's takeover of crypto, financial engineering is fast becoming a pillar of the crypto market. It is now at the center of the latest iteration of one of the hottest trends in the space: the crypto treasury strategy. This trend is championed by Michael Saylor, whose company — MicroStrategy (MSTR), now rebranded simply as Strategy — began acquiring bitcoin as both a corporate reserve asset and a market signal. But the real innovation wasn't just buying BTC and holding it. It was how the firm financed those purchases: issuing convertible notes and equity to raise capital, then cycling that capital into buying more bitcoin. Each announcement triggered a surge in Strategy's share price, which in turn made new capital raises easier and more lucrative. Others took note. What began as a bitcoin bet turned into a blueprint for a new kind of treasury management: announce crypto treasury strategy, stock pumps, raise funds, buy tokens, watch the share price pop more, repeat. This is the new "Infinite Money Glitch," according to Animoca Brands Research. "This financial engineering approach of utilizing debt and equity issuances, such as convertible notes and stock offerings, specifically to raise funds for continuous crypto asset acquisitions creates a 'flywheel" effect," the firm said in a research note. Obviously, this money printing machine didn't stop with bitcoin. Smaller firms started to apply this to other popular altcoins, including XRP, ETH and SOL. But why altcoins? After all, the bitcoin market has matured, the cycle has been well defined, and the likes of Michael Saylor have shown that the returns serve the shareholders well while enabling firms to continue to raise funds. It's the early-stage advantage, according to Animoca's research. "Applying this 'flywheel' model to altcoins might offer a more extended runway for growth and profitability compared to bitcoin. While bitcoin's market is more mature and its price discovery has undergone several major cycles, the vast and diverse altcoin market is still, in many respects, in its nascent stages," the research noted. A quick look at the return charts shows that in the short term, this altcoin treasury strategy has paid off for the firms and their shareholders. "On the day of the [altcoin treasury] announcement, share prices saw an average increase of 161%. This upward trend persisted, with average gains of 150% one day after, 185% after seven days, and 226% after 30 days," the note said. "This immediate market response also underscores the market's willingness to invest in publicly traded 'wrappers' for altcoin exposure." Interestingly, launching these treasury strategies didn't impact the actual prices of the underlying tokens, Animoca's data shows. This perhaps makes a compelling case for investors to flock to these equity "wrappers" rather than to the actual tokens. Also, the lack of altcoin exchange-traded funds (ETFs) means that Wall Street has limited options but to buy into these strategy companies to capture the upside. For investors, these massive short-term gains are hard to ignore, and as long as there is an appetite for such financial engineering, capital will continue to flow into them. The only question is: Is this sustainable? "Should market sentiment shift or altcoin prices experience a prolonged decline, the leveraged nature of some of these strategies that could be employed carries substantial inherent risks," Animoca Brands research analysts said. "Nevertheless, the trend highlights a significant addressable market for structured products that bridge traditional finance with crypto," the report added. So for now, the "Infinite Money Glitch" is here for the in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
3 Cryptocurrencies That Could Soar in the Second Half of 2025
Key Points Bitcoin continues to see strong demand from institutional investors, and appears to have the full backing of the Trump administration. Ethereum could be a major beneficiary of new crypto legislation, especially if it leads to more activity in decentralized finance (DeFi). While meme coins will likely soar in value alongside Bitcoin and Ethereum, long-term investors should look elsewhere for upside. 10 stocks we like better than Bitcoin › All lights appear to be flashing green for the crypto market right now. Bitcoin (CRYPTO: BTC) just hit a new all-time high of more than $123,000. New crypto legislation is making its way through Congress. And many are talking about "Stablecoin Summer." In short, the stage could be set for a big year-end rally in the crypto market. Here are three cryptocurrencies that have the potential to soar during the next five months. Bitcoin Of course, the obvious pick is Bitcoin. Historically, Bitcoin has always led the market higher. So if you think that the crypto market is headed higher, then you need to think about buying Bitcoin, which accounts for a whopping 62% of the total value of the crypto market. Institutional demand for Bitcoin remains strong. Money is once again surging into the spot Bitcoin exchange-traded funds (ETFs). At the same time, new Bitcoin treasury companies are launching left and right. These companies, modeled after Strategy (NASDAQ: MSTR), the original Bitcoin treasury company, are amassing billions of dollars to buy Bitcoin. Moreover, Bitcoin is getting plenty of attention from the Trump administration. In many ways, the price of Bitcoin has become a proxy for the overall health of the crypto market and the success of the Trump administration's pro-crypto policies. During "Crypto Week," President Donald Trump specifically linked the success of crypto to his overall campaign theme of "Make America Great Again." So I'm fully expecting a new push for an enhanced Strategic Bitcoin Reserve, as well as other moves that could send Bitcoin higher in the second half of the year. Ethereum If there's any cryptocurrency that comes close to Bitcoin in terms of support from the Trump White House, it's Ethereum (CRYPTO: ETH). If there is going to be a merger of traditional finance and blockchain finance, as many now expect, then Ethereum is going to be a big part of it. Ethereum is still the go-to blockchain for decentralized finance (DeFi), where it holds a commanding 58% market share. Ethereum is also the primary blockchain for stablecoins, which have emerged as one of the hottest crypto success stories of the year. These are two areas of the crypto market that hold the highest appeal for Wall Street financial firms. Keep in mind, though, that Ethereum is up less than 2% for the year (as of July 17). So Ethereum is much less of a slam dunk than Bitcoin. But there is one key development coming up soon that could light a fire under Ethereum, and that is the imminent passage of the Clarity Act. The Clarity Act, which is one of the two pieces of legislation under review by Congress during "Crypto Week," provides specific guidance on how digital assets should be regulated. The thinking now is that the overall regulatory treatment will be very favorable, opening the door for institutions to offer a much broader array of crypto-related financial products. That could unlock even more demand for DeFi, thereby helping to push the price of Ethereum higher. The one meme coin you should not buy During any bullish cycle, crypto investors typically rotate into riskier and riskier investments, as they search for higher and higher returns. That usually means an embrace of meme coins, which are among the riskiest and most speculative cryptocurrencies out there. At the end of 2024, the same phenomenon occurred, as pro-crypto euphoria led to meme coin buying. It's impossible to predict which meme coin will pop next, but it looks like Pudgy Penguins (CRYPTO: PENGU), the meme coin inspired by the Pudgy Penguins non-fungible token (NFT) collection, could lead the way. In the past week, Pudgy Penguins soared as much as 60%. That happened after Coinbase Global (NASDAQ: COIN) briefly changed its social media profile photo to a Pudgy Penguin. Crypto influencers and some crypto firms followed suit, showing their support for the meme coin. I've written before about the perils of investing in dog-themed meme coins. Those warnings are even stronger for penguin-themed meme coins. Buying priorities If you are choosing which cryptocurrency to buy next, the clear choice is Bitcoin. If history is any guide, Bitcoin has the ability to perform well during periods of extreme market uncertainty. So, even if you are expecting market turmoil ahead due to tariffs, Bitcoin could provide a hedge. The same cannot be said for Ethereum, or any other altcoin. There's no guarantee, of course, that Bitcoin will soar during the next few months. However, both Bernstein and Standard Chartered have recently come out with $200,000 price predictions for Bitcoin, so it definitely has the potential to double in value. If you're willing to accept the risks of investing in crypto, then Bitcoin could be a great way to turbocharge the performance of your portfolio in 2025. Should you invest $1,000 in Bitcoin right now? Before you buy stock in Bitcoin, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Bitcoin wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $687,149!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,060,406!* Now, it's worth noting Stock Advisor's total average return is 1,069% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Dominic Basulto has positions in Bitcoin and Ethereum. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and Walmart. The Motley Fool recommends Coinbase Global. The Motley Fool has a disclosure policy. 3 Cryptocurrencies That Could Soar in the Second Half of 2025 was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
5 days ago
- Business
- Yahoo
Ether Leads Crypto Market Higher as Bitcoin Attempts to Shrug Off Dip
Ethereum's ether (ETH) raced ahead on Wednesday, leading the crypto market higher after a modest dip earlier this week. ETH broke above the $3,200 level for the first time since early February, gaining 6.5% over the past 24 hours, CoinDesk data shows. It's now ahead a full 22% over the past seven days. Bitcoin (BTC) also bounced back above $119,000 during the early hours of the U.S. session, climbing 2.6%. The CoinDesk 20 index, a broad-based benchmark focusing on majors, was up 4.5%. BTC investors bought this week's dip to $116,000 from record highs hand over fist, analytics firm Glassnode noted. According to the firm's data, market participants "stepped in aggressively," scooping up around 196,600 BTC ($23 billion) between the $116,000 and $118,000 levels. Meanwhile, strong flows to spot exchange-traded funds and continuous bid from crypto treasury firms are providing a tailwind for ETH. U.S.-listed spot ETH ETFs booked record inflows over $900 million last week, accounting for 29% of all inflows this year, Anagram partner David Shuttleworth noted. At $450 million with only two days into the week, inflows could surpass $1 billion this week, he added. Sharplink Gaming (SBET) revealed this week it acquired more than 74,000 ETH with $257 million capital remaining for further purchases, while Bitmine Immersion (BMNR) bought over $500 million of the asset.
Gizmodo
6 days ago
- Business
- Gizmodo
Trump's Meme Coin Empire Is About to Explode With Millions of New Tokens
Millions of Trump meme coins could flood the crypto market starting this week, potentially reshaping the future of one of the most controversial cryptocurrencies in circulation. Entities affiliated with President Donald Trump now have the right to sell a large portion of the meme coin named after him, $TRUMP, starting Wednesday July 17. The move could unlock hundreds of millions of dollars in digital tokens, intensifying scrutiny over Trump's growing involvement in crypto and raising fresh questions about potential conflicts of interest. The $TRUMP token launched on January 17, just three days before Trump officially returned to the White House. A total of 1 billion $TRUMP tokens were created, but only 200 million have been circulating in the market. The remaining 800 million, or 80 percent of the total supply, are held by two entities: CIC Digital LLC, a Trump Organization affiliate, and Fight Fight Fight LLC, another company tied to the former president, according to the official $TRUMP website A vesting schedule outlined on the site allows the token creators to gradually release more of the supply over a three-year period. Back in April, CIC and its partners were permitted to sell up to 40 million tokens but chose not to. As of July 17, they are authorized to sell an additional 50 million. That brings the total available for sale to 90 million $TRUMP tokens, almost half of the current circulating supply. At current market price of $10.06, those tokens are worth more than $900 million. So far, it is unclear whether Trump-linked entities plan to sell. But one potential buyer has already stepped up: crypto billionaire Justin Sun. 'We are committed to buying $100M of $TRUMP! Together, $TRUMP and #TRON are the future of Crypto,' Sun posted on X on July 9. 'This move highlights our belief in collaborating across ecosystems to grow the crypto landscape with communities such as @GetTrumpMemes.' '$TRUMP on #TRON is the currency of #MAGA!' Sun is no stranger to controversy. In March 2023, the U.S. Securities and Exchange Commission charged him with fraud and market manipulation, accusing him of artificially inflating trading volume for his TRX and BTT tokens and paying celebrities to promote them without proper disclosure. We are committed to buying $100M of $TRUMP! Together, $TRUMP and #TRON are the future of Crypto. This move highlights our belief in collaborating across ecosystems to grow the crypto landscape with communities such as @GetTrumpMemes.$TRUMP on #TRON is the currency of #MAGA!… — H.E. Justin Sun 🍌 (@justinsuntron) July 9, 2025If CIC Digital and its partners choose to sell the newly unlocked tokens, it would dramatically increase the $TRUMP coin supply, testing the strength of demand and the staying power of Trump's crypto brand. The timing is crucial. $TRUMP has already seen wild fluctuations. It briefly hit $73.43 the day before Trump's second inauguration, giving it a market cap of $14.7 billion. Today, it has crashed to around $2 billion, wiping out more than $12 billion in market value. Despite the collapse, the Trump crypto ecosystem has been a moneymaker. The initial $TRUMP launch earned Trump-linked companies more than $350 million in transaction fees, according to blockchain analytics firm Chainalysis. Like credit card processors or ticketing platforms, the entities behind $TRUMP take a cut every time someone buys or sells the token. The coin itself has no underlying utility. Like all meme coins, $TRUMP has no intrinsic value or real-world use case. Its price is driven almost entirely by hype, fandom, and political alignment. Still, Trump's allies are treating it as a serious business. The website puts it bluntly: 'Trump memes are intended to function as an expression of support for, and engagement with, the ideals and beliefs embodied by the symbol $Trump.' The meme coin is just one part of a much broader and growing Trump family crypto empire. In May, Justin Sun attended a Trump-hosted dinner for top crypto investors at his golf club in Virginia. The event drew criticism from Democrats, who warned that Trump's involvement in crypto opens him up to foreign influence and corruption risks. The two entities controlling the majority of $TRUMP tokens do not disclose the president's personal stake, making it impossible to know how much Trump himself owns. Meanwhile, his sons are building out their own blockchain ambitions. In September 2024, they launched World Liberty Financial, WLFI, a crypto firm whose stablecoin, USD1, is pegged to the U.S. dollar and has already reached a market value of $2.2 billion, according to CoinGecko. While President Trump was listed as 'co-founder emeritus' prior to re-entering office, Donald Jr., Eric, and Barron Trump are all listed as co-founders. In March, Eric Trump teamed up with crypto mining company Hut 8 to launch American Bitcoin Corp, where he now serves as chief strategy officer. The company went public in May and already holds around $22 million worth of Bitcoin, with plans to acquire more. Bitcoin mining, the process of using powerful computers to generate new Bitcoins, is energy-intensive but can be highly profitable, especially in a bull market. Since returning to power, Trump has declared himself the 'crypto president.' And unlike his predecessor Joe Biden, whose the SEC was notoriously aggressive toward the sector, Trump's administration has embraced crypto with open arms. Enforcement actions against crypto firms have been paused or dropped. The SEC issued guidance suggesting even meme coins should not be classified as securities. Major U.S. exchanges like Coinbase have resumed or expanded listings of meme tokens and other riskier assets. In this environment, the Trump family has found fertile ground to build and profit from blockchain-based ventures. But the stakes are enormous. If Trump-linked entities dump their $TRUMP holdings onto the open market, it could either validate the coin's staying power or crash its value and open the president to new criticism. For now, the crypto world is watching and waiting.
Yahoo
7 days ago
- Business
- Yahoo
Ether Leads Crypto Market Higher as Bitcoin Attempts to Shrug Off Dip
Ethereum's ether (ETH) raced ahead on Wednesday, leading the crypto market higher after a modest dip earlier this week. ETH broke above the $3,200 level for the first time since early February, gaining 6.5% over the past 24 hours, CoinDesk data shows. It's now ahead a full 22% over the past seven days. Bitcoin (BTC) also bounced back above $119,000 during the early hours of the U.S. session, climbing 2.6%. The CoinDesk 20 index, a broad-based benchmark focusing on majors, was up 4.5%. BTC investors bought this week's dip to $116,000 from record highs hand over fist, analytics firm Glassnode noted. According to the firm's data, market participants "stepped in aggressively," scooping up around 196,600 BTC ($23 billion) between the $116,000 and $118,000 levels. Meanwhile, strong flows to spot exchange-traded funds and continuous bid from crypto treasury firms are providing a tailwind for ETH. U.S.-listed spot ETH ETFs booked record inflows over $900 million last week, accounting for 29% of all inflows this year, Anagram partner David Shuttleworth noted. At $450 million with only two days into the week, inflows could surpass $1 billion this week, he added. Sharplink Gaming (SBET) revealed this week it acquired more than 74,000 ETH with $257 million capital remaining for further purchases, while Bitmine Immersion (BMNR) bought over $500 million of the in to access your portfolio
