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- News On Bitcoin - Week 45 2024
News On Bitcoin - Week 45 2024
Weekly update on all things Bitcoin
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TL;DR
BTC is up
Bitcoin dominance is down
Bitcoin Soars on Trump’s Pro-Crypto Presidency Win
Trump’s Win Fuels $4.1 Billion Surge in BlackRock’s Bitcoin ETF
Bitcoin Whales Invest $142M After Trump Win
Fed Cuts Rates, Bitcoin and Equities Surge
UK Pension Fund Allocates Bitcoin
MicroStrategy's $42B Bitcoin Plan
Deutsche Telekom Starts Bitcoin Mining
Bitcoin Mining Difficulty Surpasses 100 Trillion
Texas Governor Backs State as Crypto Mining Hub
Bitcoin Price
Crypto is up this week, with BTC being up 10.3% and ETH up 21.4%:
Bitcoin dominance has decreased over the week, starting from 56.6% to a high of 57.34% and ending at 55.86%. 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 recently soared to a new all-time high of nearly $77,000 on Nov. 8, boosted by the U.S. Federal Reserve’s anticipated 0.25% rate cut, which drove BTC/USD upwards during Wall Street trading.
While this rate adjustment has increased optimism around Bitcoin’s price trajectory, some analysts caution that inflation concerns could still influence Fed policy.
Analysts also highlight potential risks linked to “high leverage liquidity” around Bitcoin’s current price levels, which could trigger a “long squeeze” if prices dip below the $72,600 support.
Amid this volatility, BTC's recent breakout has prompted bullish price forecasts leading up to Donald Trump’s inauguration, with some projections aiming for $100,000 to $200,000.
Bitget Research’s chief analyst, Ryan Lee, cites high futures open interest and stablecoin market cap growth as signals of possible upward momentum, estimating BTC could hit $100,000 within three months.
Similarly, Copper.co anticipates this target due to strong ETF accumulation, while technical analyst Gert van Lagen envisions a parabolic rise toward $200,000 by mid-2025 based on recent breakout patterns.
With Trump’s expected crypto-friendly policies and rising market enthusiasm, Bitcoin's path could see unprecedented highs in the months ahead.
Bitcoin (BTCUSD) Analysis:
Bitcoin hit a new all-time high near $77,000, with support at $72,600 critical for maintaining bullish momentum. A break below this level could lead to a correction, while holding above it may push Bitcoin toward $90,000 to $100,000 in the near term.
Expected Trading Ranges: Support at $72,600; Resistance at $77,000.
Market Outlook
Bitcoin’s recent surge to nearly $77,000, fueled by the Fed's rate cut and a positive macro outlook, sets the stage for continued upward potential. With expectations of a crypto-friendly environment under Trump’s presidency, analysts forecast BTC could reach $100,000 to $200,000 in the coming months. However, market liquidity concerns and support at $72,600 remain key factors, with a potential correction possible if this level is breached. Overall, the market remains bullish, but caution is advised as Bitcoin enters price discovery.
BTC/ETH ratio has seen a decrease:
Over the past 6 days, the BTC to ETH rate has experienced a decrease. Starting at 28.58 ETH per BTC on Nov 05, the rate gradually declined to 26.18 ETH per BTC on Nov 08, marking a 2.4% drop. This indicates a downward trend in the value of Ethereum relative to Bitcoin during this period.
“Almost 1000000 Bitcoin in the ETFs. I don’t think the market will care who is president in 3 weeks.”
Financial News
Following Donald Trump's presidential victory, Bitcoin reached an all-time high of over $75,000, driven by investor optimism around Trump’s pro-Bitcoin stance. Known for supporting deregulation and potentially beneficial tax policies, Trump has pledged to make the U.S. a global cryptocurrency hub, sparking excitement across digital asset markets.
His administration views Bitcoin as a strategic asset, countering foreign influences like Russia’s growing mining activities. With analysts forecasting significant future growth—some even eyeing $200,000 by 2025—Trump's win has fueled expectations that his policies could usher in a transformative era for Bitcoin and broader crypto adoption worldwide.
Following Donald Trump’s pro-Bitcoin election win, BlackRock’s iShares Bitcoin Trust (IBIT) saw an unprecedented trading volume of over $4.1 billion, surpassing major stocks like Berkshire Hathaway and Netflix. Trump’s victory sparked optimism in Bitcoin markets, driving IBIT to a record day and prompting net inflows of $621.9 million across 12 spot Bitcoin ETFs.
With Trump's commitment to pro-crypto policies, including SEC reform and a national Bitcoin reserve, Bitcoin surged to $76,500, raising its market cap to $1.48 trillion. This momentum may continue as political support bolsters investor confidence, pushing Bitcoin ETFs toward further growth in 2024.
The Coinbase bitcoin premium has flipped positive, marking the first increase since October 18 and signaling renewed demand from U.S. investors following Trump's election win. This premium, which reflects a price difference between Coinbase and global exchanges, indicates heightened buying interest, particularly among institutions.
CME bitcoin futures trading volume reached an all-time high of $13.15 billion, underscoring growing institutional participation on regulated exchanges. Additionally, bitcoin options open interest surged to $25.2 billion, nearing record levels. These indicators reflect robust institutional demand, with bitcoin trading close to $75,000.
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In less than a year since its debut, BlackRock’s iShares Bitcoin Trust (IBIT) has reached $33.17 billion in net assets, overtaking its long-standing gold ETF (IAU) at $32.9 billion. This milestone, achieved on November 7, underscores bitcoin’s rapid adoption by institutional investors.
IBIT’s record-breaking $1.1 billion in single-day inflows was driven by Trump’s election victory and a recent Federal Reserve rate cut, according to BTSE COO Jeff Mei, who noted that pro-crypto sentiment and further rate cuts could spur additional inflows. Since January, 12 spot bitcoin ETFs have drawn $25.5 billion in net inflows, reflecting robust institutional interest in bitcoin.
After Donald Trump’s re-election, two Bitcoin whales bought $142 million in BTC, reflecting a strong appetite for risk assets like Bitcoin. Trump’s win spurred Bitcoin to a record high of $76,400, amid expectations that a pro-crypto Republican Congress may encourage favorable regulation.
Analysts anticipate a potential rally above $100,000 by year-end, driven by increased demand and strategic options positioning. With crypto-friendly policies likely on the horizon, industry leaders foresee a boost in innovation, potentially including a staked Ether ETF, as fresh whale investments continue to shape Bitcoin’s upward momentum.
Adoption News
The U.S. Federal Reserve reduced interest rates by 25 basis points to a 4.50%-4.75% range, driving Bitcoin and major stock indices higher. Bitcoin's price increased, reaching over $76,000 following Trump’s presidential victory, while the S&P 500 and Nasdaq also rose. The Fed cited ongoing economic expansion and progress on inflation control, though inflation remains slightly elevated.
Future rate decisions will hinge on economic indicators, labor conditions, and global developments. deVere Group’s CEO expressed concerns that Trump could push for further rate cuts to stimulate growth ahead of 2026 midterms, potentially seeking greater influence over the Fed’s policies.
A UK pension fund has become the first in the country to add Bitcoin to its balance sheet, allocating 3% of its portfolio to the cryptocurrency. This move, recommended by pensions advisory firm Cartwright, reflects Bitcoin's impressive long-term growth, with a nearly 100,000% increase in price since 2013.
Cartwright's director, Sam Roberts, hopes this groundbreaking decision will inspire other UK institutional investors to follow suit, similar to the trend seen in global markets. As institutional adoption of Bitcoin grows, Cartwright compares this shift to the adoption of equities by pension funds in the 1970s.
Joltz and Eulen have announced the launch of DePix, Brazil’s first stablecoin on the Bitcoin network using the Taproot Assets protocol. This innovative stablecoin integrates with Brazil’s popular PIX payment system, enabling secure, instant transactions.
DePix empowers users with greater financial autonomy, offering an alternative to traditional banking while prioritizing privacy and decentralization. Joltz's infrastructure enables seamless integration with the Lightning Network, ensuring low-cost, fast transactions.
Strive Enterprises, co-founded by former U.S. presidential candidate Vivek Ramaswamy, has launched a wealth management division that integrates Bitcoin into client portfolios, positioning it as a hedge against economic risks. The firm highlights global debt, inflation, and geopolitical pressures as reasons for Bitcoin’s inclusion.
CEO Matt Cole emphasized that this approach aims to offer clients “true financial freedom.” The new unit is led by ex-Bernstein and Morgan Stanley executives and is based in Dallas, following Strive’s recent $30 million Series B funding. Since 2022, Strive has accumulated $1.7 billion in assets under management.
MicroStrategy has announced an ambitious "21/21 Plan," aiming to raise $42 billion over three years to further its Bitcoin-centric strategy. The company, led by CEO Michael Saylor, intends to split the capital into $21 billion each from equity sales and debt offerings between 2025 and 2027.
The raised funds will allow MicroStrategy to expand its Bitcoin holdings, a move it believes will enhance shareholder value and establish it as a leading Bitcoin Treasury Company. Despite potential risks due to Bitcoin’s volatility, MicroStrategy’s stock has surged 2,300% since its 2020 Bitcoin investment, signaling strong investor confidence.
Mining News
Deutsche Telekom is entering the Bitcoin mining space with a new project utilizing surplus renewable energy to power its operations. This initiative, known as “Digital Monetary Photosynthesis,” will use energy that would otherwise go to waste. Developed by Deutsche Telekom’s subsidiary MMS in collaboration with Bankhaus Metzler, the mining rigs will be located in Backnang, Germany.
The project also aims to explore Bitcoin mining’s potential to help regulate energy fluctuations in the country’s power grid. This step underscores the growing integration of Bitcoin into traditional industries, highlighting its utility beyond economic value.
Bitcoin's mining difficulty surged by 6.2%, reaching an all-time high of 101.7 trillion at block height 868,896. This increase follows a record-setting 7-day moving average hash rate of 755.5 EH/s, signaling more computational power dedicated to the network. The difficulty adjustment ensures blocks are mined at a steady pace of every 10 minutes.
Despite rising mining costs post-halving, efficient miners, particularly from the U.S., are increasing their hash power by upgrading equipment, pushing out less efficient operators. Bitcoin's hash price recently hit record lows, but recovery is expected with new mining rigs and capacity expansions.
