News Block: CPI Cools But Inflation Still Sticky, Pension Funds Buying Bitcoin, Vanguard Appoints Ex-BlackRock ETF Lead as CEO, Paul Ryan: Stablecoins Provide Demand For Treasuries, Bitcoin’s Volatility Hits New All-time Low
May 16, 2024
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Former House Speaker Paul Ryan discusses how stablecoins can address U.S. debt issues. Other topics include Biden's inflation policies, Wisconsin Pension Fund investing in Bitcoin, Vanguard appointing new CEO, and Bitcoin's record low volatility.
Bitcoin's value surged amid easing inflation concerns, highlighting the ongoing dilemma of inflation under current policies.
Wisconsin State Pension Fund's $160 million Bitcoin ETF investment marks a trend among institutional investors, ushering in a new era for Bitcoin.
Deep dives
Inflationary Impact of Tariffs and Rising Prices
Bitcoin's value surged over $65,000 amid easing inflation concerns, yet 37 months of high inflation in the US persist. Biden's decision to increase tariffs on various Chinese imports, including electric vehicles and metal products, aims to protect domestic businesses but leads to higher prices for Americans. These inflationary pressures stem from tariffs, as increasing costs for imported goods and materials are passed onto consumers, highlighting the ongoing dilemma of inflation under current policies.
Institutional Adoption of Bitcoin ETFs
The Wisconsin State Pension Fund recently invested over $160 million in Bitcoin ETFs, marking the first state pension fund to embrace Bitcoin. This move indicates a growing trend among institutional investors, with various financial firms already holding billions in Bitcoin ETFs. However, recent reports of US banks owning Bitcoin ETFs reflect market-making roles rather than direct investments, while the arrival of institutional investors signals the beginning of a new era for Bitcoin.
Role of Stablecoins in Treasury Investments and Price Predictions
Discussions around stablecoins emerge as a potential solution to the growing US debt crisis, with stablecoin issuers potentially becoming significant buyers of US treasuries. Stablecoins could boost demand for treasuries and enhance the dollar's role in digital finance. The use of stablecoins strategically to monetize treasuries aligns with a shift in political attitudes towards stablecoin regulation, hinting at future legislation favoring their integration. Additionally, Fidelity's report on Bitcoin's low volatility suggests a potential upcoming bull cycle, historically linked to price surges after periods of minimal volatility, indicating promising signs for Bitcoin's future performance.
In this week's episode of the Coin Stories News Block powered by Bitdeer (NASDAQ: BTDR), we cover these major headlines related to Bitcoin and global finance:
Biden Administration Imposes More Inflationary Policies, Including China Tariffs
Wisconsin Becomes First State to Buy Bitcoin in its Pension Fund
Vanguard Appoints Ex-BlackRock ETF Lead as New CEO
Paul Ryan: Stablecoins Can Help Solve U.S.’s Debt Problem
Bitcoin’s Volatility Hits a New All-time Low
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