💰 Crypto VCs Buzzing: Bitcoin to $100k+?!

Good Morning!

The markets are playing a game of high-stakes poker this week, with Nvidia's earnings as the ace up everyone's sleeve. Global stocks are flexing strength, but the real showstopper arrives Wednesday when Nvidia reveals its Q3 hand – analysts expect the AI chip titan to showcase another monster revenue jump after its 200% stock surge this year. Meanwhile, Bank of Japan's Ueda is keeping his cards mysteriously close, offering vague hints about potential rate hikes while the yen slides 7% since October.

In today’s email:

• Crypto: VCs buzzing with optimism  

• Bitcoin: Sitting around $90k for now

• XRP: Futures hit record OI 

• Gold: Consolidating as we prepare for next leg up 🚀

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THE BIG IDEA

Crypto VCs are buzzing with optimism post-Trump victory, eyeing massive opportunities in crypto-AI, DeFi, and infrastructure, while staying mindful of potential risks ahead

The crypto world just got a major plot twist, and VCs are placing their bets with renewed vigor. After Trump's victory sent Bitcoin soaring past $93K. The mood is electric, but calculated.

Think of it as a chess game where the pieces just got reshuffled in our favor. The industry's finally breaking free from its regulatory handcuffs, and we're about to witness an innovation explosion that outsiders haven't priced in yet.

Want to know where the smart money's flowing? Crypto-AI is the new golden child, with Hack VC's Ed Roman calling it "the undisputed sexiest category." We're talking about a multi-trillion dollar opportunity here, folks – not your average NFT hype cycle.

Imagine decentralized computing networks powering the next AI revolution

But that's just the appetizer. DeFi's getting a second wind, especially if Trump's predicted interest rate cuts materialize. The real kicker? Traditional finance might finally join the party, bringing real-world assets on-chain.

Of course, it's not all moonshots and rainbows. VCs are keeping their eyes wide open for potential speedbumps – think immigration policy impacts on tech talent and the risk of over-relaxed regulation (remember FTX?). And there's the million-bitcoin question: Will the U.S. actually start stockpiling crypto as a strategic asset?

The common thread? The crypto game is evolving from speculation to real innovation. Whether it's AI integration, infrastructure upgrades, or DeFi 2.0, we're seeing a market that's maturing faster than a fine wine in a pressure cooker.

MARKETS AT A GLANCE

TOP NEWS

Goldman Sachs predicts gold to hit record $3,000 by December 2025, driven by central bank demand and potential Trump policy impacts

Goldman's betting big on gold's glitter, targeting an ambitious $3,000 by late 2025. The catalyst? Central banks are scooping up bullion like it's going out of style, and potential Trump-era policies could spark a gold rush. With trade tensions and fiscal concerns looming, even Treasury-heavy central banks might pivot to the precious metal.

Germany faces critical fiscal policy decision as investment gaps and economic challenges demand fresh approach, despite strong public finances

Germany's wrestling with its infamous debt brake while sitting on a hefty €600bn investment gap. Despite rock-solid finances (60% debt-to-GDP vs France's 115%), the economy's stuck in neutral. The upcoming February elections will likely pivot on one choice: austerity with reforms, or targeted stimulus to jumpstart growth. The smart money's on the latter.

Nomura sees client revival after implementing reforms following market manipulation scandal, though some business remains impacted

After Nomura's market manipulation stumble and a $141,000 fine, major clients are tiptoeing back. Japan's megabanks and four key insurers have resumed trading, impressed by CEO Kentaro Okuda's accountability measures, including executive pay cuts. Still, some big bond deals remain elusive, showing recovery's still a work in progress.

CRYPTO

ARK Invest's Cathie Wood maintains bullish stance on Bitcoin, projecting potential surge to $650K-$1.5M by 2030 amid regulatory shifts

Despite Bitcoin's recent $93K peak, Cathie Wood's appetite for crypto remains ravenous. ARK's chief, who first backed BTC at $250, sees this as just the appetizer. Her recipe for success? A dash of regulatory relief from the new administration and a heaping helping of institutional adoption, targeting $650K-$1.5M by 2030.

Trump administration signals shift in crypto enforcement priorities, with resources likely to be redirected toward immigration policies

Manhattan's crypto cops are hitting the brakes, with prosecutor Scott Hartman hinting at resource cuts to his 16-person crypto task force. Former SEC enforcer Steve Pelkin sees a massive pivot to immigration enforcement, while CFTC's McGinley suggests their robust crypto oversight might ease up. The crypto world's breathing easier.

Thala recovers $25M after hacker accepts $300K bug bounty

Aptos-based DeFi protocol Thala successfully negotiated the return of $25.5M stolen in an exploit. With help from SEAL 911 and Ogle Security Group, the hacker agreed to a $300K bounty. Thala paused operations for security review and pledged to fully compensate affected users. The incident stemmed from a vulnerability in Thala's v1 contracts. Experts called the recovery an unusually straightforward success.

XRP futures hit record open interest as price surges past $1.20, driven by regulatory optimism and Ripple's stablecoin plans

XRP's lighting up the futures market with a record $2B in open interest as prices rocket 87% weekly. The catalyst? Eighteen states taking on the SEC's crypto crackdown, plus Ripple's upcoming RLUSD stablecoin. Though shorts slightly edge out longs at 51%, fresh capital's flooding in – typically a bullish signal.

GOLD

Gold under pressure: Prices drop 5% in a week amid strong dollar and post-election optimism

Gold fell to $2,561 per ounce this week, marking its steepest decline in three years. Analysts cite a surging U.S. dollar, risk-on sentiment, and fading geopolitical fears as key factors. While some predict a rebound to $2,600–$2,650, bearish momentum persists, with downside risks to $2,400. Investors eye central bank policies and potential demand revival in late 2024.

DAILY ECONOMIC CALENDAR (ET)

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