US Government Will Hold Onto Its 200K BTC Reserve

BTC-USD) reserve late last week. The US government will retain the estimated 200000 bitcoin it has already seized in criminal and civil proceedings.

The U.S. government will not add to its already sizable stash of bitcoin (BTC-USD), according to a report by The Block. The administration disclosed last week that it plans to keep the estimated 200,000 bitcoin seized from criminals and other parties in court cases.

While the news may have prompted a sell-the-news moment in bitcoin and put pressure on crypto stocks like Coinbase (NASDAQ:COIN), Robinhood (NASDAQ:HOOD), and MicroStrategy (NASDAQ:MSTR) (now known as Strategy) heading into the week, traders would be wise to keep a few things in mind.

First, the move to hold onto bitcoin reserves validates the industry and could encourage more institutional investment, especially with the administration's intent to keep the digital assets and not sell them to replenish government coffers. That bodes well for a company like Strategy, which has been a beacon of institutional crypto interest with its large holding of bitcoin built up under former CEO Michael Saylor.

Second, the government's role in cryptocurrency use could make it more mainstream and drive up trading activity on platforms like Coinbase and Robinhood in the process. That could unlock more earnings power at each key industry player than the market is currently estimating.

Topics: Cryptocurrency, Bitcoin, Blockchain, Coinbase, Robinhood, MicroStrategy, Federal Reserve, Treasury Department, Cryptocurrency Regulation

Has the bull market finally run out of steam? After a stellar performance in the first half of 2023, equities took a step back last week amid rising recession fears and a souring trade mood.

Plus, Nvidia (NASDAQ:NVDA) wiped $1T from its market cap after a stellar earnings report, while TSMC (OTC:TSM667) reported a 39% decline in revenue.

Here's what traders need to know heading into the week.

Stock futures slid on Monday after a strong rally in the prior session. The Dow Jones Industrial Average fell more than 200 points, while the S&P 500 and Nasdaq 100 both lost over 1%.

The administration will keep the bitcoin seized by federal agencies in criminal and civil cases, rather than selling it to return to the treasury, according to a report by The Block. The news comes after the Treasury Department disclosed earlier this year that it holds nearly 200,000 bitcoin, which was valued at about $7.1 billion at the time.

Bitcoin prices dipped on Monday following the report.

The move to hold onto bitcoin validates the industry and could encourage more institutional investment. It’s also good news for companies like MicroStrategy, which has been a beacon of institutional crypto interest with its large holding of bitcoin.

The administration's decision not to sell the bitcoin to replenish government coffers could put pressure on lawmakers to increase the debt ceiling.

The report also noted that the administration's use of cryptocurrency could make it more mainstream and drive up trading activity on platforms like Coinbase and Robinhood in the process. That could unlock more earnings power at each key industry player than the market is currently estimating.

Crypto stocks slid on Monday. Shares of Coinbase, Robinhood, and MicroStrategy fell in premarket trading.

Nvidia shares fell slightly in premarket trading on Monday after the chip giant wiped $1T from its market cap this year.

Nvidia’s stock price has soared more than 200% in 2023 as investors bet on strong demand for its chips used in AI and gaming.

TSMC, the world’s largest contract chipmaker, reported a 39% decline in second-quarter net income from a year earlier.

The Taiwan-based company reported that net income dropped to 152.4 billion Taiwan dollars ($4.97 billion), down from 249.6 billion a year ago. Analysts polled by Bloomberg had expected net income of 144.3 billion.

TSMC's revenue dropped 10.3% to 501.5 billion dollars, which missed the analysts' average estimate of 503.4 billion.

Despite the earnings declines, TSMC raised its full-year revenue forecast. The company now expects 2023 revenue to decrease in the mid- to high-single-digit percentage range from 2022, narrowing the prior outlook for a decrease in the "low- to mid-teens."

TSMC stock edged down slightly in New York.

U.S. stock futures slid on Monday after a strong rally in the prior session. The Dow Jones Industrial Average fell more than 200 points, while the S&P 500 and Nasdaq 100 both lost over 1%.

Later this week, traders will get new readings on inflation and the labor market, which could give more insight into the health of the economy. Economists polled by Dow Jones