Bitcoin may become a strategic reserve for more countries, and the crypto market is facing new challenges

Macroeconomic Environment and Market Dynamics

A recent report released by a digital asset research institution predicts that by 2025, more countries will incorporate Bitcoin into their national strategic reserves. Analysts believe this trend will promote the development of the crypto market. The report points out that in the face of economic challenges such as severe inflation, currency devaluation, and fiscal deficits, failing to include Bitcoin in strategic reserves may pose greater risks.

However, the latest data released on U.S. employment shows a strong performance in the job market, with accelerating service sector inflation, significantly dampening expectations for interest rate cuts by the Federal Reserve. Market analysis suggests that the Federal Reserve may only implement one rate cut in 2025, lower than previous expectations. This news triggered severe fluctuations in the financial markets, and the crypto market was no exception. Bitcoin's price fell from over $100,000 to $96,181, with a decline of more than 4.8% within 24 hours. Other cryptocurrencies performed even worse, with most coins experiencing declines of over 10%.

Political Environment and Cryptocurrency

In Canada, the prime ministerial candidate supporting Bitcoin has attracted widespread attention. The candidate advocates for building Canada into the "global blockchain capital" and believes that Canadians should have the right to use Bitcoin and other currencies. This position has received support from some well-known figures in the tech industry. Prediction markets indicate that the candidate has an 89% chance of winning the prime minister position.

Companies Adopting Bitcoin Strategies

As interest in digital assets continues to rise, more and more publicly traded companies are beginning to include Bitcoin in their balance sheets. In 2024, several companies announced the adoption of Bitcoin financial strategies, including approving Bitcoin purchase plans and accepting cryptocurrency payments. This reflects the market's recognition of Bitcoin as an asset, while also demonstrating the strategic adjustments companies are making in response to inflation and liquidity demands.

Emerging Technologies and the Encryption Field

In the field of biotechnology, a new project has launched six new IP tokens, covering multiple cutting-edge medical and technological areas, including Alzheimer's disease, industrial hemp fiber, ovarian aging, and low-temperature preservation. These projects aim to leverage blockchain technology to drive research innovation and provide investors with opportunities to participate in these frontier fields.

Artificial Intelligence and Decentralized Finance

A new AI agent project has garnered attention in the Solana ecosystem. The project aims to provide everyone with easy access to and understanding of decentralized finance (DeFi) through interoperable AI agents. The project's code has been made public on an open-source platform and has committed to locking 5% of the token supply for a year, demonstrating a commitment to long-term development.

Overall, although the crypto market is facing volatility in the short term, the long-term trend shows that Bitcoin and blockchain technology are gaining wider recognition and application. From national strategies to corporate finance, and to technological innovation, crypto assets are gradually integrating into more fields, which may indicate that a new stage of the digital economy is about to arrive.