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- News On Bitcoin - Week 47 2024
News On Bitcoin - Week 47 2024
Weekly update on all things Bitcoin
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TL;DR
BTC is up
Bitcoin dominance is down
Metaplanet Shares Surge After Bitcoin Purchase
Goldman Sachs Becomes Key Player in Bitcoin ETFs
MicroStrategy's Largest Bitcoin Acquisition
BlackRock Bitcoin ETF Options Go Live on Nasdaq
Hoth Therapeutics Allocates $1M to Bitcoin Treasury
Goldman Sachs Spins Out Crypto Platform
BIT Mining Faces $10M Fine for Bribery
Russia Crypto Mining Restrictions in 13 Regions
Nano Labs Launches Advanced Crypto Mining Chips
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Bitcoin Price
Crypto is up this week, with BTC being up 9.5% and ETH up 8.2%:
Bitcoin dominance has decreased over the week, starting from 57.7% to a high of 58.34% and ending at 57.3%. 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.
Itâs 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 (BTC) is inching closer to the monumental $100,000 milestone, but strong resistance in the form of a $300 million sell wall continues to challenge its upward momentum.
The BTC/USD pair has faced repeated rejections near this level, with sell orders concentrated between $99,300 and $103,000, as highlighted by Binance order book data.
While some erosion of this sell-side liquidity has been observed, substantial aggregate supply remains, making this resistance formidable.
Institutional interest, as reflected in over $1 billion in net inflows into U.S. Bitcoin ETFs on Nov. 21, underscores the underlying bullish sentiment. However, mid-sized sell orders dominate transactions, with whales largely refraining from major activity.
Leveraged retail traders are heavily positioned with short trades around $99,500, creating potential for a liquidation cascade if Bitcoin pushes higher.
Technical indicators, including a bullish divergence on the four-hour Relative Strength Index (RSI), suggest renewed upward momentum, with traders speculating that BTC could either surge past $100,000 or retrace to key support levels near $90,000.
Adding to the intrigue, the Coinbase premium and CME Bitcoin futures trading at $99,600 hint at bullish potential, positioning Bitcoin at a critical juncture where market dynamics and psychological resistance collide.
Bitcoin (BTCUSD) Analysis:
Bitcoin closed at $98,864.00, up $1,485.80. In the short term, Bitcoin broke below its rising trend channel, indicating weaker upward momentum, but with no resistance and support at $66,600, further gains are expected. The RSI is above 70, signaling strong investor optimism, though potential overbought conditions could lead to a brief pullback. In the medium term, Bitcoin has risen significantly since breaking resistance at $67,241, with the target of $84,547 met, and support at $72,000. The long-term outlook is similarly bullish, with support around $70,000 and no resistance visible.
Expected Trading Ranges: Support at $70,000; Resistance at $98,864.
Market Outlook
Bitcoin approaches the $100,000 milestone amid robust institutional inflows and strong technical indicators, but faces resistance from a $300 million sell wall. While bullish momentum suggests a potential breakout, leveraged short positions and market volatility raise the risk of a pullback to $90,000.
BTC/ETH ratio has seen a increase:
Over the past six days, there has been a general increase in the Bitcoin to Ethereum (BTC/ETH) rate. Starting from 29.24 ETH on November 17, the rate rose to 30.69 ETH on November 20, before experiencing some fluctuations. It then slightly decreased to 29.60 ETH on November 23, but overall, the rate has risen from 28.07 ETH on November 18 to 29.60 ETH on November 23, reflecting an overall increase of about 5.5% during this period.
âEvery Bitcoiner eventually goes through the realization that they were indoctrinated into the wrong school of economicsâ.
Financial News
Japanese investment firm Metaplanet Inc. saw its shares rise by 15.1% on Tuesday after acquiring an additional 124.1 BTC for $11.3 million, raising its total Bitcoin holdings to 1,142.2 BTC worth $104.8 million. Purchased at an average price of $91,266 per Bitcoin, this move aligns with the firmâs strategy to use Bitcoin as a treasury reserve asset.
Metaplanetâs stock turnover hit 21.9 billion yen ($141.7 million), marking a 1,334% year-to-date increase. The company also issued one-year bonds worth 1.75 billion yen to fund Bitcoin purchases, as its BTC yield reached 186.9% for October to mid-November.
MicroStrategy has acquired 51,780 BTC for $4.6 billion, boosting its total holdings to 331,200 BTC, now worth over $30 billion. The purchase, made at an average price of $88,627 per BTC, marks the company's largest acquisition to date, representing 16% of its total holdings. This acquisition was funded through the sale of 13.6 million shares.
Despite facing some criticism for its leveraged position, the company continues to drive institutional Bitcoin adoption. MicroStrategy remains committed to its "21/21 Plan," aiming to raise $42 billion for future Bitcoin purchases, solidifying its position as a major Bitcoin holder.
Goldman Sachs has made a notable pivot toward Bitcoin, increasing its holdings in Bitcoin ETFs to $710 million, marking a 71% growth in Q3 2024. This positions the firm as the second-largest investor in BlackRockâs iShares Bitcoin Trust (IBIT). Once critical of digital assets, Goldman now recognizes Bitcoinâs potential as a store of value.
The firmâs investments are a part of broader institutional adoption, with other financial players like Fidelity and Grayscale also expanding their Bitcoin ETF positions. Goldmanâs shift reflects the increasing legitimacy of Bitcoin in traditional finance, aided by a more favorable regulatory environment.
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Bitcoin ETF options, specifically IBIT, launched with a staggering $2 billion in notional trading volume. A 4.4:1 ratio of call options to put options suggests strong bullish sentiment, indicating tradersâ optimism about Bitcoin's potential upside.
The debut volume is unprecedented for such products, signaling high demand and confidence in Bitcoin, especially as the cryptocurrency hits new all-time highs. This debut highlights the growing interest in Bitcoin ETFs as trading vehicles, and analysts will continue to monitor how market conditions evolve throughout the year.
MicroStrategy (MSTR) has reached a $100 billion market cap, surpassing both Tesla and Nvidia in daily trading volume, thanks to its strategic bitcoin treasury investments. Initially a $1 billion company, MSTR's success highlights how bitcoin can dramatically boost a company's market presence.
However, concerns remain about the sustainability of this growth, especially as bitcoin enters potential bear market phases. Despite skepticism, MicroStrategy's CEO, Michael Saylor, has proven that adopting bitcoin as a corporate reserve strategy works, sparking a growing trend among other companies. The increasing institutional adoption of bitcoin is expected to continue, boosting corporate stocks with BTC holdings.
Adoption News
BlackRockâs iShares Bitcoin ETF (IBIT) options have officially launched on Nasdaq, following approval from the Options Clearing Corporation (OCC). This debut has already seen significant trading volumes, signaling strong investor interest. The new options enable U.S. investors to hedge Bitcoin positions or leverage exposure, broadening Bitcoinâs utility beyond mere holding.
This marks a pivotal step toward integrating Bitcoin into traditional financial markets, further cementing its role in global finance. As the derivatives market expands, it could potentially surpass Bitcoin's market cap, highlighting the growing confidence in institutional adoption of cryptocurrency.
Biopharmaceutical firm Hoth Therapeutics is investing $1 million in Bitcoin (BTC) as a treasury reserve, aligning with a growing trend among companies seeking inflation-resistant assets. Approved by its Board of Directors, the move underscores Bitcoin's rising status as a hedge and store of value, with CEO Robb Knie citing its appeal amid growing institutional adoption and economic uncertainty.
This decision mirrors actions by peers like Acurx Pharmaceuticals and follows examples set by industry leaders such as MicroStrategy. Hothâs adoption signals Bitcoinâs integration into corporate treasury strategies, highlighting its evolution from a speculative asset to a mainstream financial instrument.
SĆawomir Mentzen, a candidate in Poland's May 2025 presidential elections, has outlined an ambitious plan to establish a Strategic Bitcoin Reserve. If elected, Mentzen aims to position Poland as a global Bitcoin hub by fostering crypto-friendly regulations, low taxes, and supportive banking policies.
Inspired by global trends, such as U.S. and Bhutan's strategic Bitcoin initiatives, Mentzenâs proposal reflects growing recognition of Bitcoinâs potential as a hedge against inflation and economic instability. His personal investment in Bitcoin since 2013 adds weight to his advocacy, signaling a shift in integrating digital assets into national financial strategies.
Solidion Technology has made a bold move by investing 60% of its excess cash reserves into Bitcoin, positioning itself alongside companies like MicroStrategy in embracing cryptocurrency as a hedge against inflation and a long-term store of value. The company plans to reinvest interest earnings and a portion of future capital raises to further accumulate Bitcoin.
This strategy, which has already sparked a 42% rise in its stock price, reflects Solidion's belief in Bitcoin's transformative potential. With institutional acceptance growing, Solidion views Bitcoin as a resilient asset to enhance shareholder value and strengthen its financial position.
Goldman Sachs plans to spin off its cryptocurrency platform, aiming to create a new company focused on blockchain financial instruments. The spinout, expected in 12 to 18 months, will see the bank collaborate with partners like Tradeweb Markets to enhance the platform's offerings.
The new venture will concentrate on tokenizing real-world assets (RWAs) and will primarily target financial institutions, not retail investors. This move aligns with Goldmanâs increasing involvement in crypto, highlighted by its investments in Bitcoin ETFs and the planned launch of tokenization products, reflecting the growing demand for blockchain-based financial solutions.
Mining News
BIT Mining, formerly known as 500.com, has agreed to pay $10 million in fines after admitting to bribing Japanese officials between 2017 and 2019 in a bid to win a resort and casino license. The bribes, totaling $2.5 million, included cash, luxury trips, and entertainment.
The company will pay $4 million to the SEC and $10 million in criminal penalties to the DOJ, with part of the civil penalty already covering the fine. The DOJ also charged the companyâs former CEO, Zhengming Pan, for orchestrating the scheme. BIT Miningâs shares fell 6.3% following the announcement.
Russia is planning to impose crypto mining restrictions in 13 regions, including key mining areas like Irkutsk, to address power supply challenges. The restrictions, aimed at preventing electricity shortages during peak seasons, could last until 2031. The affected regions include Siberia and parts of the Republics of Dagestan and Chechnya.
Irkutsk, home to major mining operations like BitRiver, benefits from cheap electricity and hydroelectric power, making it a crucial location for the industry. These measures are part of broader efforts by Russiaâs government to regulate crypto mining, which could significantly impact local mining firms.
