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- $333M BlackRock ETF Exit | News On Bitcoin Week 1 of 2025
$333M BlackRock ETF Exit | News On Bitcoin Week 1 of 2025
Weekly crypto update on all things Bitcoin to keep you updated
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TL;DR
BTC is up
Bitcoin dominance is down
BlackRock Bitcoin ETF Hits $50 Billion
MicroStrategy Buys Another $209 Million in Bitcoin
Bitcoin Investors Pull $333M from BlackRock IBIT ETF
Switzerland Explores Bitcoin as National Reserve
Hong Kong Considers Bitcoin for Reserves
IRS Delays New Crypto Tax Rules
Bitcoin mining firm Hive Digital Relocates to Texas
Bitcoin Investment Strategy Backed by MARA CEO
BitFuFu Secures Major Miner Deal, Shares Climb
And much more!
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Bitcoin Price
Crypto is up this week, with BTC up by 3.9% and ETH up by 8.0%:
Bitcoin dominance has decreased over the week, starting from 54.45% to a high of 54.48% and ending at 53.14%. Investor sentiment, regulatory changes, technological advancements, and the overall growth of the cryptocurrency sector shape Bitcoin's market dominance. Its reputation as "digital gold" also enhances its position, making it a key player in the market.
Bitcoin’s market dynamics have taken a turn as the flagship cryptocurrency experiences a notable correction following its recent push toward all-time highs.
After peaking near $97,000, Bitcoin has retraced to trade around $94,000, reflecting broader risk-off sentiment across global financial markets.
Analysts suggest that this pullback is a healthy consolidation phase, but caution remains about further downside risk in the near term.
Technical indicators provide mixed signals. The 50-day simple moving average (SMA) at $96,740 is a key resistance level that Bitcoin failed to reclaim after multiple attempts.
On shorter timeframes, the stochastic RSI signals overbought conditions, underscoring the likelihood of additional corrections. Meanwhile, the 200-period exponential moving average (EMA) offers support near $92,500, a level that bulls will need to defend to maintain momentum.
A decisive break below this threshold could see Bitcoin revisiting the psychologically significant $90,000 mark, or even the much-discussed $80,000 accumulation zone.
Broader financial markets are amplifying Bitcoin’s recent volatility. U.S. equity markets continue to slide as investors brace for the Federal Reserve’s next moves on monetary policy.
While the central bank maintained interest rates during its December meeting, the potential for further hikes remains amid persistent inflationary pressures.
This hawkish outlook has strengthened the U.S. dollar, applying additional downward pressure on Bitcoin, which tends to move inversely to the greenback.
ETF activity is another focal point. Despite the initial excitement surrounding spot Bitcoin ETFs, recent outflows have raised concerns about waning institutional demand.
BlackRock’s iShares Bitcoin Trust (IBIT), a bellwether for ETF sentiment, saw record outflows of $333 million on January 2, marking the third consecutive trading session of declines.
This trend suggests that institutional investors are taking profits or repositioning in anticipation of broader market weakness.
On the macroeconomic front, global growth concerns are weighing on risk assets. China’s slower-than-expected recovery and ongoing geopolitical tensions have added to investor caution.
In the U.S., disappointing job market data has created uncertainty about the Federal Reserve’s ability to achieve a soft landing. These factors collectively dampen the appetite for speculative assets like cryptocurrencies.
However, not all signals are bearish. Bitcoin’s network fundamentals remain robust, with the hashrate hitting an all-time high of 1,000 EH/s on January 3.
This reflects miners' confidence in the long-term viability of Bitcoin despite reduced rewards following the April 2024 halving. Analysts also point to the potential for a renewed rally if Bitcoin can break decisively above $98,000, a move that would likely attract fresh momentum-driven buying.
While the immediate outlook for Bitcoin remains clouded by macroeconomic uncertainty and technical resistance levels, many market participants see the current dip as an opportunity to accumulate for the next cycle.
The $80,000 mark is increasingly viewed as a pivotal zone for long-term investors seeking value amid short-term volatility.
For now, traders are advised to exercise caution, closely monitor key levels, and remain prepared for heightened volatility as Bitcoin navigates its complex interplay with global markets.
Bitcoin (BTCUSD) Analysis:
As of January 3, 2025, Bitcoin (BTC) is trading at $96,754. The short-term outlook is negative, with Bitcoin testing resistance at $98,000. A breakthrough could signal an upward move, but volume trends indicate potential weakness.
In the medium term, Bitcoin remains in a rising trend channel, with support at $70,000 and resistance at $106,000. The price objective of $84,547 has been reached, but the trend shows potential for consolidation or slight upside. The long-term trend remains positive, with support at $72,000, suggesting continued upward momentum.
Bitcoin (BTC): Support at $92,364; Resistance at $98,207.
Market Outlook:
Bitcoin (BTC) shows mixed short-term signals with potential resistance at $98,000. Medium and long-term trends remain positive, supported by strong levels at $70,000 and $72,000. Investors should monitor key levels for possible price movements.
BTC/ETH ratio has seen a decrease:
In the last 6 days, the BTC to ETH rate has generally decreased. The rate dropped from 28.18 ETH on January 1, 2025, to 27.29 ETH on January 4, 2025, with fluctuations in between, including a slight 0.28% increase on January 4. Overall, the trend shows a reduction in Bitcoin's value relative to Ethereum over this period, with the rate experiencing daily declines, except for minor increases.
“Refuse the gift of Bitcoin at your own peril..”
Financial News
BlackRock's Spot Bitcoin ETF, IBIT, has achieved remarkable success, becoming the fastest-growing ETF in history by accumulating over $50 billion in assets within just 11 months of its January 2024 launch. This milestone has significantly impacted Bitcoin’s price, pushing it above $100,000.
Bloomberg has called the launch the "greatest in ETF history," highlighting the growing institutional interest in cryptocurrencies. Alongside BlackRock's ETF, others like Fidelity’s FBTC have also seen substantial inflows, underscoring the increasing integration of digital assets into mainstream finance. The growth of Bitcoin ETFs signals a transformative shift in institutional investment strategies.
MicroStrategy has purchased an additional $209 million worth of Bitcoin, marking its eighth consecutive weekly buy. The firm acquired 2,138 BTC at an average price of $97,837, bringing its total holdings to 446,400 BTC, valued at approximately $41 billion.
Since 2020, MicroStrategy has aggressively accumulated Bitcoin under the leadership of founder Michael Saylor, with notable purchases such as $2 billion and $5.4 billion in a few weeks. Despite market fluctuations, Saylor remains committed to the strategy, reaffirming the company’s intention to continue acquiring Bitcoin without plans to sell, aiming for long-term value growth.
El Salvador has surpassed 6,000 Bitcoin (BTC) in its holdings, now valued at approximately $569 million. The country, the first to adopt Bitcoin as legal tender, continues to steadily increase its reserves, purchasing Bitcoin daily. As of December 29, 2024, El Salvador’s holdings rank 6th globally.
The nation began its Bitcoin acquisition in 2021, buying at an average price of $45,450 per coin, yielding a 108% gain. Despite IMF concerns, the government remains committed to Bitcoin, viewing it as a tool for financial inclusion and long-term economic stability.
BlackRock’s iShares Bitcoin Trust (IBIT) experienced its largest daily outflow since its launch in January 2024, with $332.6 million withdrawn on January 2. This marks the third consecutive day of outflows, totaling $392.6 million over the past week.
Despite the pullback, IBIT remains among the top ETFs for inflows in 2024, with $37.2 billion, ranking third overall. Competitors such as Bitwise, Fidelity, and Ark 21Shares saw positive inflows, but BlackRock's fund remains a dominant player. Predictions for 2025 suggest growing interest in Bitcoin ETFs, with more innovative products expected.
The Coinbase Premium Index, a key metric for gauging U.S. retail demand for Bitcoin, has hit its lowest point in 12 months, at -0.23, as of December 31. This decline is attributed to increased selling pressure in a low-liquidity market during the year-end.
Bitcoin briefly fell to $91,479, its lowest since late November, with analysts cautioning that recovery may hinge on macroeconomic shifts or renewed institutional and retail interest. Long-term holders enjoy substantial profits, but the risk of sell-offs persists as short-term holders see limited gains at current price levels.
Adoption News
Switzerland is advancing a proposal to include Bitcoin in its national reserves, alongside gold. Registered on December 31, 2024, the initiative requires 100,000 signatures by June 30, 2026, to trigger a public referendum. Advocates like Yves Bennaïm and Giw Zanganeh argue Bitcoin’s decentralized nature boosts financial stability and sovereignty, while critics cite volatility and regulatory concerns.
The Swiss National Bank and FINMA are cautious about risks, including energy use and money laundering. If approved, this move could set a global precedent, influencing central bank strategies worldwide, as grassroots Bitcoin adoption grows in cities like Lugano and beyond.
Hong Kong legislator Wu Jiexhuang has proposed using the "one country, two systems" framework to incorporate Bitcoin into the region’s national reserves. Drawing inspiration from countries like El Salvador and Bhutan, Jiexhuang believes Bitcoin could stabilize financial markets and attract investment.
He suggested starting with Bitcoin ETFs before expanding holdings. Hong Kong's financial regulators aim to create crypto regulations based on the principle of "same business, same risks, same rules." The region’s growing interest in Bitcoin aligns with China’s substantial Bitcoin holdings, positioning Hong Kong to take a leading role in integrating digital assets into traditional financial systems.
The IRS has provided temporary relief regarding a rule that would have defaulted crypto holders on centralized exchanges to the FIFO (First In, First Out) accounting method for tax reporting. Previously, investors without a preferred accounting method would have been automatically assigned FIFO, potentially increasing capital gains taxes.
This ruling was seen as problematic, especially during bull markets, as it could unintentionally result in higher tax liabilities. The relief allows taxpayers to maintain their preferred accounting method until December 31, 2025, giving brokers time to adjust. The IRS’s broader tax rules are set to take effect in 2027.
Franklin Templeton anticipates a surge in nations adopting Bitcoin reserves by 2025, positioning the asset as a global store of value. This trend, driven by institutional and sovereign interest, reflects a shift from speculation to utility.
Politicians in Hong Kong and Germany have shown interest, with Hong Kong proposing Bitcoin reserves for financial stability. Germany's Free Democratic Party suggests Bitcoin adoption to bolster the European monetary system, highlighting growing recognition of Bitcoin's strategic value among governments worldwide.
Australia's Bitcoin ATMs have experienced continuous monthly growth for 29 months, reaching 1,359 machines—3.5% of global crypto ATMs. The nation ranks third worldwide, trailing only the U.S. and Canada. If growth continues, Australia may surpass Europe's 1,660 ATMs.
The U.S. dominates with 31,516 ATMs, accounting for 81.3% of the global total, followed by Canada with 7.8%. Globally, there are 38,753 Bitcoin ATMs, with most in North America. However, Bitcoin ATMs face increasing misuse, with U.S. scams linked to them surpassing $110 million in 2023, prompting regulatory scrutiny to address fraud vulnerabilities.
Mining News
Hive Digital, a Bitcoin mining firm, announced its move from Vancouver, Canada, to Texas, attributing the relocation to a more favorable regulatory climate under President-elect Donald Trump's administration. The company cited Texas' business-friendly environment, energy infrastructure, and skilled workforce as key factors in the decision.
Hive Digital emphasized the benefits of being in the U.S., particularly in terms of access to capital markets, liquidity, and visibility. Texas has become a prominent hub for Bitcoin mining, with major players already operating in the state. Hive Digital's move reflects the growing optimism for cryptocurrency policies under Trump.
Fred Thiel, CEO of MARA Holdings, advocates a long-term "buy-and-forget" Bitcoin strategy for retail investors, citing its impressive historical performance. Bitcoin has dropped in only three of the past 14 years, with average annual growth between 29% and 50%.
Thiel anticipates significant 2025 catalysts, including U.S. Bitcoin reserves, institutional adoption via spot ETFs, and improved regulations under the Trump Administration. MARA has adopted a similar approach, increasing its Bitcoin holdings by 192.5% in 2024 to 44,394 BTC, valued at $4.3 billion. This aligns with Bitcoin’s nearly 120% appreciation last year, reinforcing its potential as a long-term investment.
