Welcome to the Bitcoin Lighthouse newsletter by Lightning Ventures

Bitcoin resumed its bull run. We explain why asset prices have increased across the board today.

📈 Bitcoin Price

🌡️ Bitcoin Temperature

In response to Powell's speech yesterday, the Bitcoin Temperature has risen to 3.2 and continues to trend higher in the neutral zone.
Please read my article explaining what is the Bitcoin temperature.

👍 Highlights

• 🏦 Fed decides no interest rate bump in December, indicates cuts ahead
• 👺 Janet Yellen embarrasses herself
• 😓 'There is no money': Javier Milei delivers Argentines painful truth in maiden speech
• 🔍 Is this capitalism?

🏦 Fed decides no interest rate bump in December, indicates cuts ahead

• Fed holds interest rates steady in December, signalling potential rate cuts ahead.

• The Federal Reserve announced a third interest rate pause during its December meeting on Wednesday, leaving the federal funds rate at a 22-year high of 5.25% to 5.5%.
• Fed officials predicted rate cuts to come as early as next year, with interest rates expected to tick down to 4.6%.
• The CME FedWatch Tool reacted immediately and is now, for the first time, forecasting a rate cut with a 14.5% probability in end-Jan.

• Reacting to this news, asset prices increased, with US stock markets at all-time highs.

• Bitcoin also reacted after the drop this week, rising from $41k to almost $43k.

🔍 Our View

The Bitcoin Temperature is firmly in the neutral zone at 3.3. The macro temperature continues to increase as interest rates are now at their peak and expected to decrease over the next year. The US stock markets are at all-time highs. The macro temperature is not higher because the M2 money supply is still falling at 3 %.

This asset temperature for Bitcoin is also firmly in the neutral zone. The Bitcoin temperature is now at 3.2, its highest level over a year.

Bitcoin is now unavailable at the deeply discounted rates at the height of fear in the market at the beginning of this year. However, with the positive news around spot Bitcoin ETFs, we remain optimistic about Bitcoin's price over the next few months.

👺 Janet Yellen embarrasses herself

• I was confused whether this should have been in the memes section or the news. Sometimes reality is funnier than memes.

😓 'There is no money': Javier Milei delivers Argentines painful truth in maiden speech

• Argentinian politician Javier Milei says there is no money in Argentina due to hyperinflation.
• Milei says the government has destroyed the currency and the economy through irresponsible monetary policy.
• He has argued in interviews the only solution is to eliminate the central bank and move to a private, decentralized money like Bitcoin.
• Milei warns that hyperinflation leads to poverty, despair and the destruction of the middle class.
• He has previously mentioned that Bitcoin fixes this by having a limited supply and serving as sound money that cannot be debased.
• 🔍 Our View: Bitcoin provides an alternative to government-controlled fiat currencies that lose purchasing power.

🔍 Is this capitalism?

Is this capitalism when asset prices are influenced by decisions made behind closed doors?

I posted an article, rather a question, 'Is this capitalism?' and would love to know your comments.

🃏Meme Corner

👨‍🏫 Learn Bitcoin

How many dollars will be printed over the next 100 years?

For Bitcoin, we know because it is fixed at 21 million.

I would love your feedback on how we can improve this newsletter and help you in your Bitcoin journey.

By Sandeep Goenka
Partner at Lightning Ventures