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- News On Bitcoin - Week 43 2024
News On Bitcoin - Week 43 2024
Weekly update on all things Bitcoin
TL;DR
BTC is down
Bitcoin dominance is up
CME Bitcoin Futures Hit Record high $12.26B OI
Denmark Introduces 42% Unrealized Gains Tax on Bitcoin
Spot Bitcoin ETFs Recorded Negative Inflows
Microsoft's BTC Investment Proposal Set for Shareholder Vote
Chainlink Integrates with Bitcoin via Spiderchain L2
Michael Saylor Sparks Controversy with Bitcoin Custody Views
Bitcoin Mining Difficulty Surges to New Record
BitFuFu Acquires Ethiopian Mining Facility
Core Scientific Expands Partnership with CoreWeave
Bitcoin Price
Crypto is down this week, with BTC being down 2.5% and ETH down 6.4%:
Bitcoin dominance has increased over the week, starting from 55.3% to a low of 54.67% and ending at 55.72%. 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.
It’s going to be interesting to see whether this trend will continue in the short term, as capital in crypto tends to flow initially to BTC and then further out on the risk-curve, starting with altcoins like ETH and then into mid- or low-cap coins.
Bitcoin’s path to $100,000 is increasingly feasible, with market dynamics and analyst projections aligning in its favor.
Over the past eight months, Bitcoin has consolidated below its all-time high, and analysts like Timothy Peterson believe it is following past bullish cycles that suggest six-figure levels within months.
Institutional interest is a driving force, with spot Bitcoin ETFs seeing $2.11 billion in inflows since October, totaling $60 billion in assets.
Coupled with macroeconomic factors, like the U.S. debt crisis exceeding $35.8 trillion, this demand strengthens Bitcoin’s appeal as an inflation hedge.
Meanwhile, large holders have accumulated 1.6 million BTC over six months, replicating the 2020 pre-bull run accumulation, which could create a supply shock with less Bitcoin available on exchanges.
While a short-term pullback to $60,000 is possible, analysts argue that a dip below this level is unlikely given Bitcoin’s historical trend alignment.
Sustained demand and favorable economic conditions underscore the likelihood of a six-figure price, positioning Bitcoin as a key hedge against financial instability.
Bitcoin (BTCUSD) Analysis:
Bitcoin is currently priced at $67,710.00, up $525.74. It shows a rising trend with support at $66,000 and resistance at $69,000, though the high RSI indicates potential overbought conditions. The medium-term outlook suggests a breakout from a horizontal channel, targeting $84,547 if resistance at $67,871 is surpassed. Overall, the recommendations are to hold in the short term, with a weak positive medium-term outlook and a positive long-term outlook.
Expected Trading Ranges: resistance level at $67,871 and support at $66,000.
Market Outlook
Bitcoin is poised for a potential bull run, with analysts projecting a price target of $100,000 within the next three months. Despite some caution from traders regarding short-term fluctuations, Bitcoin's resilience and historical performance suggest a positive trajectory, especially as it remains above key support levels.
BTC/ETH ratio has seen an increase:
Over the past six days, the Bitcoin (BTC) to Ethereum (ETH) conversion rate has experienced an overall increase. It started at 25.26 ETH on October 21 and rose to 27.09 ETH by October 25, reflecting a total increase of 7.2%. Specifically, the rate increased steadily each day, with notable gains of 2.17% on October 24 and 0.66% on October 25. This upward trend highlights growing value for Bitcoin in relation to Ethereum during this period.
“At 68K, Bitcoin is less than one-tenth of one percent of the world’s wealth. It still has 100X potential. Easily.”
Financial News
As of October 18, open interest (OI) on Bitcoin futures at the Chicago Mercantile Exchange (CME) hit a record high of $12.26 billion, marking a 36% increase in the past two weeks and a 3.5% rise from its previous peak in April.
This surge reflects heightened institutional interest, with firms like hedge funds and asset managers favoring CME's regulated market. Rising OI suggests that institutional players are building positions, likely anticipating further Bitcoin price volatility or appreciation. This record-setting activity at CME highlights the growing institutional adoption of Bitcoin as a strategic asset.
Starting January 2026, Denmark plans to tax unrealized gains on Bitcoin at 42%, marking a significant shift in cryptocurrency taxation. This move means investors will owe taxes on annual value increases, even without asset sales. The Danish government aims to align Bitcoin with existing financial asset taxes, promoting consistency and simplifying tax reporting.
However, this unprecedented tax could burden long-term holders, who may face liquidity challenges if forced to sell assets solely to cover taxes. With similar actions in Italy and mounting European regulatory scrutiny, Denmark’s tax plan raises concerns about its impact on Bitcoin’s attractiveness as an investment.
U.S. spot Bitcoin ETFs recorded net outflows of $79 million on Tuesday, ending a seven-day streak of inflows totaling over $2.6 billion. The bulk of Tuesday's outflows came from Ark and 21Shares' ARKB, which saw $134.74 million leave the fund.
Meanwhile, BlackRock’s IBIT, the largest spot Bitcoin ETF, recorded net inflows of $42.98 million, while Fidelity's FBTC and VanEck's HODL brought in $8.85 million and $3.82 million, respectively. Total trading volume for Bitcoin ETFs also dropped from $1.76 billion on Monday to $1.4 billion on Tuesday.
Adoption News
Microsoft has placed a proposal to explore investing in Bitcoin on the agenda for its upcoming shareholder meeting on Dec. 10. The proposal, introduced by The National Center for Public Policy Research, is advised against by Microsoft’s board, which considers the measure “unnecessary” as it already monitors various assets, including cryptocurrencies.
The company’s Global Treasury team highlighted that cryptocurrency volatility remains a significant factor, though Bitcoin has previously been evaluated as a diversification option. If approved, Microsoft would become the largest public Bitcoin investor, surpassing companies like MicroStrategy and Tesla, potentially impacting its $3.157 trillion market cap.
Chainlink has entered the Bitcoin ecosystem through a new partnership with Spiderchain, a Layer 2 network built by Botanix Labs. By joining Chainlink’s Scale program, Spiderchain gains access to Chainlink’s oracle services and Cross-Chain Interoperability Protocol (CCIP), enhancing Bitcoin’s ability to support Ethereum-compatible applications.
This integration enables Bitcoin to host Ethereum Virtual Machine (EVM) layers, a significant shift for a blockchain previously lacking in L2 and smart contract support. As Chainlink’s proven oracle solutions integrate with Spiderchain, this move promises broader application potential for Bitcoin.
MicroStrategy CEO Michael Saylor ignited controversy with his stance that Bitcoin ownership in state custody may be more secure than personal custody. Speaking on the "Markets with Madison" podcast, Saylor criticized self-custody and highlighted the role of public markets and state entities in Bitcoin adoption.
Saylor’s perspective suggests that Bitcoin’s future may lie in regulated markets, where companies like MicroStrategy serve as Bitcoin exposure vehicles. He argues that this approach could broaden retail and institutional access, potentially reducing anti-Bitcoin legislation. While divisive, Saylor’s comments reflect a growing debate on Bitcoin’s custodial models.
Mining News
Bitcoin's mining difficulty reached an all-time high, increasing by 3.9% to 95.67 terahashes (T), with hashrates surpassing 700 exahashes per second (EH/s) for the first time. This intensified competition often precedes significant price movements, leading analysts to forecast a potential bull run.
Rising difficulty pressures smaller miners, some of whom have stopped operations, resulting in public miners now controlling nearly 30% of the network's hash power. Historically, as miner revenue nears the 365-day simple moving average (SMA), Bitcoin markets have entered bullish phases, making the recent difficulty spike a hopeful signal for investors.
