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- News On Bitcoin - Week 48 2024
News On Bitcoin - Week 48 2024
Weekly update on all things Bitcoin
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TL;DR
BTC is down
Bitcoin dominance is down
Bitcoin ETFs Face Outflows Amid BTC Pullback
MicroStrategy's Bitcoin Bank Strategy to Boost Market Cap
Bitcoin to Attract $2 Trillion in 2025
Cantor, Tether Partner for $2B Bitcoin Lending
Bitwise Files for 10 Crypto Index Fund ETF
Vancouver Mayor Proposes Bitcoin Reserves
Bern Explores Bitcoin Mining for Grid Stability
MARA Buys 6,474 BTC Using $1 Billion Convertible Notes
Texas Bitcoin Miners Face New Registration Rule
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Bitcoin Price
Crypto is up this week, with BTC being down 2.5% and ETH up 7.3%:
Bitcoin dominance has decreased over the week, starting from 57.4% to a low of 54.53% and ending at 54.6%. 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's journey to the $100,000 milestone is driven by robust whale activity, institutional inflows, favorable macroeconomic conditions, and miner confidence.
A dip to $90,742 saw whales strategically accumulate 16,000 BTC worth $1.5 billion, signaling confidence in long-term price growth. This aligns with historical patterns where whale accumulation has preceded significant rallies, such as Octoberâs surge from $60,000 to near $100,000.
Institutional interest has strengthened with $103 million in net inflows into U.S. spot Bitcoin ETFs, reversing two days of $548 million in outflows. Key funds like Fidelityâs FBTC and Bitwiseâs BITB have seen renewed investor confidence.
Meanwhile, MicroStrategy continues to bolster its position, holding 331,200 BTC and planning to acquire 4% of Bitcoinâs total supply by 2033, showcasing sustained corporate trust in Bitcoin's potential.
Macroeconomic instability, including Franceâs rising debt yields and Russiaâs currency depreciation, has further driven demand for decentralized, scarce assets like Bitcoin.
These conditions highlight Bitcoinâs appeal as a hedge against traditional financial instability, leveraging its hard monetary policy and censorship-resistant features.
Lastly, miners have shifted from outflows to accumulation, with Glassnode reporting net inflowsâa key indicator of bullish sentiment. Historically, miner confidence has marked the start of significant bull markets.
Supported by these strong fundamentals, Bitcoin is positioned to challenge the $100,000 mark, with immediate resistance at $96,400 and key support between $92,777 and $95,634.
Bitcoin (BTCUSD) Analysis:
As of November 29, 2024, Bitcoin (BTC) is trading at $96,292. The short-term outlook shows resistance at $99,000, with a break above potentially triggering further upward momentum. In the medium term, Bitcoin has support around $70,000, and its next key target could be $84,547. The long-term trend remains positive, supported by increasing investor interest and volume.
Expected Trading Ranges: Support at $70,000; Resistance at $99,000.
Market Outlook
Bitcoin is trading at $96,292, showing strong bullish momentum. Whales have accumulated 16,000 BTC worth $1.5 billion, supporting the upward trend. Immediate resistance is at $99,000, with potential for further gains if broken. Key support is at $70,000, and the medium-term outlook remains positive, with continued upside potential towards $100,000.
BTC/ETH ratio has seen a decrease:
Over the past six days, the BTC to ETH conversion rate has experienced a general decrease. Starting from 29.77 ETH per Bitcoin on November 22, it dropped steadily, reaching 26.63 ETH on November 28. This marks a decrease of approximately 10.7% during this period, despite some fluctuations with minor increases on November 26 and 28.
âThis might be the last day ever to buy Bitcoin below $0.10M.â
Financial News
After a week of record inflows, U.S. spot Bitcoin ETFs saw $438 million in outflows on November 25, 2024. This marked the first significant outflow after five consecutive days of inflows totaling $3.4 billion. Bitwiseâs BITB experienced the largest outflow at $280 million, followed by Grayscaleâs GBTC ($158.2M) and Fidelityâs FBTC ($134.7M).
However, BlackRockâs IBIT continued to perform well, drawing $267.8 million in inflows. The pullback suggests profit-taking as Bitcoin approaches the $100,000 threshold, with market consolidation potentially influencing investor sentiment heading into 2025.
MicroStrategyâs plan to become a de facto âBitcoin bankâ could drive its market cap to $135 billion, according to analysts from Bernstein. By targeting a $600 share price, the software company could see a 42% increase in its current $95 billion valuation.
With 386,700 BTC, making it the largest corporate Bitcoin holder, MicroStrategy continues its aggressive strategy of issuing debt to acquire more Bitcoin, capitalizing on its long-term value. This strategy positions the company as a leader in Bitcoin adoption, with potential growth to 4% of the total Bitcoin supply in the next decade.
Crypto investment products saw a historic $3.13 billion in net inflows last week, marking the seventh consecutive week of gains. U.S. spot Bitcoin ETFs led the surge, contributing $3.38 billion, with BlackRockâs IBIT accounting for $2.05 billion of the total.
U.S.-based funds received the lionâs share, adding $3.2 billion, while European funds faced slight outflows. This record inflow highlights strong institutional demand, signaling growing long-term confidence in Bitcoin and broadening its appeal in the crypto investment space. As momentum builds, expect further growth in Bitcoin-based products and overall institutional adoption.
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Despite being declared "dead" 415 times since 2010, Bitcoin continues to surge, approaching the $100,000 milestone. Historically, those who invested when Bitcoin was deemed dead would have seen significant returns, with $100 growing to over $101 million. Currently priced near $97,500, Bitcoin has recovered over 5.9% from recent lows.
Analysts predict a potential 30% correction before another rise, possibly breaking the $100K mark by year-end. The growing global money supply, projected to reach $127 trillion by 2026, could further propel Bitcoin, possibly pushing it above $132,000, according to analyst Jamie Coutts.
Bitcoin could see $2 trillion in new investments in 2025, driven by a $20 trillion liquidity boost from the U.S. Federal Reserve. The global money supply is expected to grow to $127 trillion by 2025, increasing by 18% from its current level.
Historically, Bitcoin has captured about 10% of new money, potentially pushing its market cap significantly higher. Analysts predict this could fuel a Bitcoin rally, with prices reaching $130,000 to $150,000 by late 2025. Institutional adoption, Bitcoin's superior returns, and a weaker U.S. dollar are expected to drive this growth.
Adoption News
Cantor Fitzgerald is collaborating with Tether on a $2 billion Bitcoin lending initiative, enabling clients to borrow dollars against Bitcoin collateral. This strategic move aims to boost liquidity as cryptocurrency adoption grows.
The announcement aligns with Cantor CEO Howard Lutnick's transition to U.S. Commerce Secretary under President-elect Donald Trump, with Lutnick set to divest his Cantor interests to meet ethics regulations. Cantor already manages most of Tetherâs $132 billion reserves and holds a 5% stake in the stablecoin issuer. This partnership signals Wall Streetâs increasing confidence in crypto-backed financial instruments.
Bitwise has filed for an ETF based on its 10 Crypto Index Fund, aiming to provide investors indirect exposure to top cryptocurrencies. The fund, launched in 2017, holds 75.14% Bitcoin and 16.42% Ether, alongside Solana, XRP, Avalanche, and others, with $1.4 billion in AUM.
Coinbase Custody manages the crypto assets, while BNY Mellon oversees cash holdings. The SEC has yet to decide on the application. Bitwise has also pursued ETFs featuring spot Bitcoin, Ether, and Solana, capitalizing on a potentially pro-crypto U.S. administration following the recent election, signaling expanding institutional crypto adoption.
Brazilâs Congressman Eros Biondini has introduced a bill to allocate up to 5% of the countryâs international reserves to Bitcoin, creating the Strategic Bitcoin Reserve (RESBit). The initiative aims to diversify national assets, shield the economy from geopolitical risks, and boost leadership in the digital economy.
If passed, Brazil could purchase up to $3 billion in Bitcoin, supporting its digital currency, Drex, and advancing blockchain education. Inspired by nations like El Salvador and Bhutan, Brazilâs move could solidify its role in global financial innovation and encourage broader Latin American Bitcoin adoption, despite challenges like volatility and political resistance.
Cboe Global Markets will introduce cash-settled bitcoin index options on December 2, linked to the Cboe Bitcoin U.S. ETF Index (CBTX), which tracks multiple spot bitcoin ETFs. These options, available in standard, mini (MBTX), and FLEX formats, allow traders to gain exposure to bitcoin without owning the asset.
The cash-settlement eliminates complexities like wallet management, appealing to both institutional and retail investors. Cboe aims to expand its footprint in the digital asset space, bridging traditional finance and cryptocurrencies. This move comes amid rising interest in bitcoin and related financial products, positioning Cboe as a leader in bitcoin derivatives.
Vancouver Mayor Ken Sim has proposed exploring the integration of bitcoin into the city's financial reserves, aiming to position the city as a leader in bitcoin adoption. The proposal, set for a vote on December 11, seeks to diversify financial resources and potentially hedge against inflation.
While the initiative aligns with growing global interest in bitcoin as a reserve asset, it faces challenges, particularly concerning the volatility of bitcoinâs price. Despite this, Simâs proposal reflects broader trends in institutional and government adoption of bitcoin, signaling a potential shift in municipal finance strategies.
Mining News
The Canton of Bernâs parliament has approved a motion to explore Bitcoin mining as a solution to utilize surplus energy and stabilize its electricity grid. Passed by an 85-46 vote, the initiative tasks the government with identifying unused energy sources, partnering with Swiss Bitcoin mining firms, and assessing its potential to balance energy supply.
Proponents highlight economic and renewable energy development opportunities, drawing inspiration from Texas, where Bitcoin miners collaborate with grid operators. Despite government resistance citing energy concerns, this move positions Bern as a potential hub for innovative Bitcoin strategies.
Marathon Digital (MARA) acquired 6,474 Bitcoin through a $1 billion convertible notes offering, as announced on Nov. 27. The purchase includes an initial acquisition of 5,771 BTC at an average price of $95,395 per coin, followed by an additional 703 BTC. MARAâs Bitcoin treasury now holds 34,797 BTC, valued at approximately $3.3 billion.
Taking cues from MicroStrategy, MARA plans to use $160 million from its remaining funds to buy more Bitcoin during price dips. This move underscores the growing trend of corporate debt-financed Bitcoin acquisitions, aimed at leveraging market opportunities.
