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- News On Bitcoin - Week 46 2024
News On Bitcoin - Week 46 2024
Weekly update on all things Bitcoin
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TL;DR
BTC is up
Bitcoin dominance is up
MicroStrategy Expands Bitcoin Holdings
Mt. Gox Moves 2,500 BTC in Fifth Transfer of November
Goldman Sachs Invests $710M in Bitcoin ETFs
Bitcoin Overtakes Silver
Pennsylvania Bill for Bitcoin Reserve
Trump Nominates Pro-BTC Matt Gaetz as Attorney General
Marathon Digital Reports Q3 Loss Amid Growth Efforts
Court Allows Greenidge Bitcoin Mining Facility to Operate
Marathon Digital Reports Q3 Loss Amid Growth Efforts
Bitcoin Price
Crypto is up this week, with BTC being up 16.6% and ETH up 6.5%:
Bitcoin dominance has increased over the week, starting from 56.2% to a high of 57.85% and ending at 57.4%. 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 price has recently faced a slight pullback from its all-time high of $93,434, currently trading around $89,077. Despite this correction, several indicators suggest that the bullish trend remains intact.
The influx of stablecoins into exchanges has been notably higher than usual, a common precursor to price rallies, indicating that traders are preparing for the next major price move.
Historical data shows that large stablecoin inflows often signal a continuation of upward momentum, as seen during the 2021 bull run and earlier this year.
Additionally, institutional demand is continuing to rise, with over $4.7 billion flowing into Bitcoin ETFs in the days following the U.S. election.
BlackRock's spot Bitcoin ETF, in particular, has experienced substantial inflows, reflecting strong market confidence.
On the technical side, Bitcoin's MVRV ratio currently sits at 2.5, suggesting that Bitcoin is not overvalued at its current price level and still has room for growth.
Furthermore, on-chain metrics such as the realized price bands point to a potential price target of $100,000, with the upper realized price band indicating that Bitcoin could soon enter a new price discovery phase.
With key support levels above $87,000 holding firm, Bitcoin's market structure remains bullish, and the possibility of reaching $100,000 by Thanksgiving remains highly plausible.
Bitcoin (BTCUSD) Analysis:
Bitcoin's technical analysis shows a strong bullish trend across short, medium, and long-term timeframes. The price has broken through key resistance levels, with no immediate resistance in sight, suggesting further upside potential. RSI readings above 70 indicate strong buying momentum but could also signal overbought conditions. Key support levels are around $66,000 (short-term) and $70,000 (medium to long-term), while resistance is absent in the immediate chart, but the next target is around $84,547.
Expected Trading Ranges: Support at $70,000; Resistance at $84,547.
Market Outlook
Bitcoin remains in a strong bullish trend across all timeframes, with continued upside potential. Short-term pullbacks are possible due to an overbought RSI, but medium- and long-term technicals suggest further growth, with support around $70,000. The outlook remains positive, with targets around $84,547 and long-term potential reaching up to $83,551.
BTC/ETH ratio has seen a increase:
Over the last six days, the Bitcoin to Ethereum (BTC to ETH) exchange rate has increased overall. Starting at 24.47 ETH per BTC on Nov 9, it rose steadily to 29.56 ETH per BTC on Nov 15, reflecting a cumulative increase of approximately 20.9%. This positive trend was marked by fluctuations, with a slight dip on Nov 9, but overall, Bitcoin has gained relative strength against Ethereum during this period.
“$100k is closer than the lows of the chopsolidation range for Bitcoin.”
Financial News
Australian crypto fund manager DigitalX has posted a remarkable 99% annual gain in its Bitcoin fund, surpassing its competitors. This follows significant cost-cutting measures, which saw the company reduce annualized expenses by $950,000 through restructuring. Despite a slight decline in its Digital Asset Fund's quarterly performance, DigitalX continues to demonstrate strong returns, including a 526% gain over five years.
The firm is preparing for the "mainstream moment" of crypto, driven by global political shifts and potential U.S. regulatory clarity, which could open new opportunities. Additionally, DigitalX’s spot Bitcoin ETF, launched on the ASX, provides Australian investors direct access to Bitcoin.
MicroStrategy acquired 27,200 BTC for $2.03 billion, raising its total holdings to 279,420 BTC worth over $24 billion, with $12 billion in unrealized gains. Bitcoin’s rally to $85,000 boosted the firm's stock (MSTR) by 600% year-to-date. Analysts anticipate potential S&P 500 inclusion after upcoming accounting standard changes, driving inflows of up to $15 billion.
CEO Michael Saylor’s vision to transform the firm into a “Bitcoin bank” includes a $42 billion funding goal. Despite risks of volatility, MicroStrategy’s bold Bitcoin strategy has set a trend among corporations, reinforcing its role as a leader in institutional Bitcoin adoption.
Analyst PlanB predicts Bitcoin could hit $500,000 within this halving cycle, supported by his stock-to-flow model and recent favorable U.S. political shifts. Bitcoin’s all-time high of $80,000 followed Donald Trump’s re-election, with his proposal for a U.S. national Bitcoin reserve potentially driving institutional demand.
Companies like MicroStrategy and new spot Bitcoin ETFs add to the momentum. Despite concerns about speculative risks and market manipulation, Bitcoin’s scarcity and increasing institutional adoption reinforce its role as “digital gold.” While speculative, PlanB’s model and past accuracy provide optimism for Bitcoin’s trajectory in the evolving financial landscape.
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Mt. Gox, the defunct crypto exchange, transferred 2,500 BTC, worth approximately $222 million, to two unmarked wallets on November 11, 2024. This marks the fifth transfer of Bitcoin the exchange has made this month, following a series of internal and external movements since October 31.
The large Bitcoin transfers are often seen before creditor repayments, which Mt. Gox has been postponing. Last month, it delayed its repayment deadline from October 31, 2024, to October 31, 2025. Mt. Gox was once the world’s largest Bitcoin exchange until it collapsed due to a major security breach in 2014.
Goldman Sachs has revealed in a recent SEC filing that it holds approximately $718 million in Bitcoin ETFs, marking a significant shift for the investment bank. Since Q2 2024, Goldman has increased its Bitcoin ETF holdings by 71%, adding $300 million.
This includes $461 million in BlackRock’s spot Bitcoin ETF, along with investments in other Bitcoin ETFs such as Fidelity’s and Grayscale’s. Previously critical of Bitcoin, Goldman Sachs has gradually embraced the cryptocurrency market, showing increased exposure to both Bitcoin and Ether ETFs. This move signals a notable change in the bank’s stance on crypto assets.
Adoption News
Bitcoin's market capitalization has surpassed silver's, reaching $1.75 trillion and securing the eighth spot among global assets. The surge follows strong institutional demand and rising interest in Bitcoin ETFs, with the cryptocurrency hitting $89,560 before retracing. This marks the second time Bitcoin has overtaken silver this year.
While silver’s market cap has declined 6.24%, Bitcoin has risen 30% over the same period. The broader Bitcoin market has benefited from increased trading volume in related assets like Coinbase and MicroStrategy. Despite gold’s $14.7 trillion market cap, Bitcoin’s scarcity narrative fuels optimism about its future growth.
As Bitcoin approaches $90,000, both El Salvador and Bhutan have seen substantial increases in their Bitcoin holdings. El Salvador's holdings rose by over $100 million in one week, bringing their total to $523 million by Nov. 12. The country now holds about 5,900 BTC.
Bhutan, which began mining Bitcoin in 2019, saw its Bitcoin holdings surpass $1 billion, with 12,568 BTC valued at $1.03 billion. In addition to Bitcoin, Bhutan also holds Ether and other cryptocurrencies. Both countries are benefiting significantly from the ongoing market rally, which has pushed Bitcoin's market cap closer to $2 trillion.
Genius Group, a Singapore-based AI education technology firm, has committed 90% of its reserves to Bitcoin, implementing a "Bitcoin-first" strategy. The decision, inspired by MicroStrategy's approach, positions Bitcoin as a key asset to support the company’s growth in tech and education.
Following Bitcoin's surge to new highs, Genius Group’s stock spiked up to 150%, reflecting investor optimism. The company plans to acquire up to $120 million in Bitcoin and integrate Bitcoin payments on its educational platform. This strategy, aligned with its vision for exponential technologies, aims to build financial stability and enhance educational offerings on blockchain.
Pennsylvania lawmakers have introduced a bill allowing the state's Treasury to invest up to 10% of its funds in Bitcoin, aiming to protect against inflation and economic volatility. The proposed legislation, introduced by Representative Mike Cabell, would apply to the General Fund, Rainy Day Fund, and State Investment Fund, totaling over $16 billion.
Cabell cited major firms like BlackRock and Fidelity using Bitcoin for portfolio stability. This bill follows a broader push to incorporate Bitcoin into state-level reserves, reflecting the growing recognition of cryptocurrency as a potential safeguard during uncertain economic times.
President-elect Donald Trump has nominated Representative Matt Gaetz for U.S. Attorney General, signaling a shift in the Department of Justice’s approach to crypto regulation. Gaetz, a pro-Bitcoin advocate, has previously proposed legislation for the IRS to accept Bitcoin payments.
His support for digital currencies and innovation could influence the DOJ’s stance on crypto, aiming to balance oversight while fostering growth. Gaetz's nomination comes amid his resignation from Congress, following an ethics probe. As Attorney General, he is expected to address concerns over government oversight and position the U.S. favorably in the global digital economy.
Mining News
Marathon Digital (MARA) posted a $125 million net loss in Q3 2024 due to higher operating costs, rising bitcoin mining difficulty, and missed revenue expectations. Revenue grew 34.5% year-over-year to $131.6 million but fell short of projections.
Despite challenges, MARA expanded its bitcoin holdings to 26,747 BTC, valued at over $2.4 billion, and increased its hash rate by 93%. CEO Fred Thiel emphasized a long-term "HODL strategy" and projected reaching 50 exa hashes per second by December. The firm remains optimistic, buoyed by Bitcoin's post-election rally and hopes for pro-crypto policies under Trump’s administration.
Bitcoin miners are transferring substantial amounts of BTC as the asset reaches new highs. Data from CryptoQuant revealed that 25,367 BTC, valued at $2.2 billion, flowed out of miner wallets on Nov. 12, when Bitcoin’s price hit $88,025.
While some miners appear to be taking profits ahead of the next halving, analysts note this doesn’t necessarily signal widespread selling. High hashrates and mining difficulty suggest strong network activity, with experts predicting Bitcoin could exceed $100,000 by month’s end. Donald Trump’s pro-crypto policies further bolster optimism for sustained price growth.
