Good Morning Crypto Enthusiasts!

Glad to have you back for another edition of the UseTheBitcoin.com newsletter.

1. El Salvador Alters Bitcoin Policy: El Salvador’s $1.4B IMF loan deal makes Bitcoin acceptance voluntary, limits government Bitcoin projects, and phases out the Chivo wallet.

2. 📈Technical Analysis Masterclass - Bitcoin recently experienced a 7% drop, but there’s no cause for alarm. Watch UseTheBitcoin’s latest Youtube video “Is Bitcoin Losing Momentum?” to see if this create opportunities for larger institutional players to buy at lower prices or join our Official Telegram Channel for more alpha!

3. Ethena Labs Partners with WLFI: Ethena Labs integrates its sUSDe token into WLFI, offering dual rewards with WLFI tokens.

4. BlackRock Stirs Bitcoin Debate: BlackRock’s Bitcoin video disclaimer on its 21M cap sparked debate.

5. 💡Feature of the Day - Bitcoin Drops on Fed Rate Cut: Bitcoin fell to $101,300 after a 25 bps Fed rate cut and hawkish 2025 inflation outlook.

   
   All this and more in today’s headlines!

📰 News Highlights:

El Salvador Alters Bitcoin Policy [Source][Source][Source]

El Salvador has agreed to a $1.4 billion loan deal with the IMF, making Bitcoin acceptance voluntary and scaling back government involvement in Bitcoin-related projects.

Legal reforms will ensure taxes are paid only in USD, the country’s official currency, and the state-backed Chivo wallet will be gradually phased out.

Public sector engagement with Bitcoin will also be limited, addressing IMF concerns over potential risks.

 📈Technical Analysis Masterclass:

Is Bitcoin Losing Momentum?

Key Insights

• Support Levels:

  • Bitcoin is trading above its previous consolidation box, now a strong support zone. This foundation is critical for sustainable future price increases.

  • The 20-day moving average serves as a dynamic support, stabilizing price movements and acting as a potential springboard for the next rally.

• Momentum Analysis:

  • Bearish Divergence: Higher highs in Bitcoin’s price alongside lower highs in the RSI signal weakening momentum.

  • Despite this, RSI remains above the median, suggesting overall market optimism and a still-active bullish trend.

Broader Context

• External factors such as regulatory updates, macroeconomic events, and investor sentiment can significantly influence Bitcoin’s price, often overriding technical signals.

• Volatility is an inherent part of the cryptocurrency market, emphasizing the need for strategic preparation.

Strategic Takeaways

• Risk Management: Use stop-loss levels to protect investments from unexpected market shifts.

• Stay Informed: Keep up with market updates and technical trends for better decision-making.

Ethena Labs Joins WLFI [Source][Source][Source]

Ethena Labs has partnered with World Liberty Financial to integrate its synthetic dollar token, sUSDe, into the Aave-based platform.

Users will earn dual rewards in sUSDe and World Liberty’s WLFI token.

A proposal for the integration was submitted to the World Liberty community on Dec. 18 and awaits approval.

🎁Freebie:

Download your free ebook now and take the first step toward mastering CRYPTO IN UNDER 60 MINS!

BlackRock Ignites Bitcoin Supply Debate [Source][Source][Source][Source]

A disclaimer in BlackRock’s Bitcoin explainer video reignited debate over the cryptocurrency's 21 million cap.

While the video acknowledged Bitcoin’s fixed supply as key to its value, it added that there’s "no guarantee" the cap won’t change.

Critics argue that altering the supply would undermine Bitcoin’s core principles.

💡 Feature of the Day: 

Bitcoin Falls After Fed Cuts Rates [Source][Source][Source]

Bitcoin’s price dropped to $101,300 following the Federal Reserve’s 25 basis point rate cut and a hawkish inflation outlook for 2025.

Ether also fell 5.96%, mirroring the broader market’s reaction.

Fed Chair Jerome Powell indicated only two more rate cuts are likely in 2025, coupled with an increased inflation forecast of 2.5%.

Today’s Sponsor:

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😂 Crypto Meme of the Day: 

Meme of the day provided by @TheBTCTherapist

And that’s it for this today.

Buy, sell, store, and convert crypto with today’s sponsor Gemini, full-reserve and highly-regulated cryptocurrency exchange and custodian!

See you all tomorrow’s edition!

Jonathan Gibson
UseTheBitcoin.com