Hello Crypto Enthusiasts!

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

I hope your fuel tanks are full because within the next 48 hours we could have a spot Bitcoin ETF approval!

That said, lets hop into today’s headlines!

📰 News Highlights:

🚀 Bitcoin Soars to New Heights, Crosses $47K! 🌐 (Link)(Link)(Link)(Link)(Link)

Bitcoin is on fire! The crypto market is buzzing with excitement as Bitcoin's price rockets past $47,000, hitting a multiyear high not seen since April 2022. 

The surge, from $44,000 on Jan. 8, marks a remarkable 6.5% gain in the last 24 hours and an astounding 177% surge over the past 12 months. 

The timing aligns with the anticipation surrounding the United States Securities and Exchange Commission's (SEC) decision on spot Bitcoin ETFs, with industry experts speculating a potential approval by Jan. 10.

Trader Jin and popular X user Byzantine General have been quick to analyze the situation. The charts, pointing towards BTC finding support, fuel optimism among traders, while short positions see massive liquidations, totaling over $76 million in a single day. As Bitcoin makes headlines, the crypto community eagerly awaits the SEC's decision and braces for more bullish movements, with expectations of trillions of dollars flowing into the market.

🚨 Gary Gensler's Crypto Warning Amid Spot BTC ETF Anticipation! ⚠️ (Link)(Link)(Link)

Hold your horses, crypto enthusiasts! As the SEC inches closer to potential approval of spot Bitcoin ETFs, SEC Chair Gary Gensler takes to social media to issue a stern warning.

In a thread on X, Gensler emphasizes the "exceptional risk" and volatility associated with crypto investments. Without explicitly mentioning spot Bitcoin ETFs, he hints at potential non-compliance with federal securities laws by asset managers offering crypto investment vehicles.

Gensler's warning comes amidst a flurry of activity, with multiple issuers filing amended S-1 applications for spot Bitcoin ETFs. 

The likes of Valkyrie, WisdomTree, BlackRock, VanEck, Invesco, Galaxy, Grayscale, ARK Invest, 21Shares, Fidelity, Bitwise, and Franklin Templeton are all in the race. Gensler's cautionary words add a layer of complexity to the anticipation, leaving the crypto community pondering the potential impact on the broader market.

💸 VanEck Seeds Potential Spot Bitcoin ETF with $72.5 Million! 💼 (Link)(Link)

In a bold move, investment firm VanEck takes the lead in seeding its potential spot Bitcoin ETF with a substantial $72.5 million. 

This revelation comes as part of the latest round of amended forms filed by prospective spot Bitcoin ETF issuers. 

Bitwise and BlackRock also disclose their initial funding amounts, with Bitwise seeding $200 million and BlackRock contributing $10 million. These strategic moves set the stage for a potential wave of institutional investment in the cryptocurrency space.

VanEck's commitment doesn't stop there. In a philanthropic gesture, the investment firm pledges 5% of potential profits from its spot Bitcoin ETF to support Bitcoin core developers at Brink.

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💡 Feature of the Day:

Bitcoin Braces for a Bear Hug: Will the Crypto Tourists Survive Hayes' March Madness? (Link)

Arthur Hayes, the ex-BitMex boss turned fortune teller, is predicting a wild ride for bitcoin (BTC) in the coming months. While everyone's eyes are glued to the potential moon launch fueled by a spot ETF, Hayes is whispering about a 20-30% bear hug waiting around the corner in March.

What's got the crypto Nostradamus spooked? Two big bogeymen: vanishing bank liquidity and a looming banking crisis. Imagine the Fed's faucet of easy money suddenly turning into a trickle, and banks scrambling to plug holes in their leaky bond portfolios. This financial domino effect, Hayes warns, could send shockwaves through stocks, bonds, and yes, even our beloved Bitcoin.

But here's the twist: even with this dark cloud hanging over the market, Hayes believes Bitcoin will weather the storm better than most. He calls it the "neutral reserve hard currency," a safe haven in a sea of sinking assets. So, while the crypto tourists might get seasick, the true believers, according to Hayes, will emerge from this March madness stronger and richer.

Now, before you start packing your digital survival kit, let's dissect Hayes' predictions:

• The liquidity rug pull: The Fed's giant piggy bank, the reverse repo program, is emptying out. This free-flowing cash, which fueled the crypto rally last year, is about to dry up. Imagine a party where the DJ cuts the music and the punch bowl runs dry – things could get messy.

• The banking cliffhanger: A crucial lifeline for banks, the Bank Term Funding Program, is set to expire. This program kept some shaky banks afloat, but without it, some might find themselves face-to-face with the financial Grim Reaper.

• Bitcoin's rocky road: If Hayes' crystal ball is on point, expect a 20-30% dip for Bitcoin, with a potential nosedive to $32,000 if the market gets really spooked. But don't count the digital gold out just yet. Hayes predicts a rebound before the Fed's March meeting, as investors seek refuge in Bitcoin's non-bank-backed haven.

So, what's the takeaway? This crypto rodeo is about to get a little wilder. Hayes' bearish prediction might not come true, but it's a good reminder that even in the land of moonshots, there's always a chance for a crash landing. Diversify your portfolio, keep your cool, and remember, even the bravest crypto cowboys sometimes need to weather a storm.

Now, let's see if the SEC approves that ETF and throws some fuel on this fire, or if the bears truly come marching in March. Stay tuned, crypto comrades, and keep those mining rigs humming!

😂 Crypto Meme of the Day: 

And that’s it for this today.

With all of the recent hacks taking place, remember to protect your crypto assets with today’s sponsor Trezor hardware wallets.

See you all tomorrow’s edition!

Jonathan Gibson
UseTheBitcoin.com