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Tag: Bitcoin

  • Tether's Bitcoin Strategy Pays Off Big: $1.1 Billion Profit Amid Price Surge

    Tether's Bitcoin Strategy Pays Off Big: $1.1 Billion Profit Amid Price Surge

    In a week that saw Bitcoin surging to an impressive $42,000, Tether, the company behind the world’s largest stablecoin, witnessed a substantial increase in the value of its BTC holdings, resulting in a staggering unrealized profit of over $1 billion.

    Since May 2023, Tether has amassed 4,083 BTC.

    Tether’s Bitcoin Holdings Soar

    According to data compiled by crypto analyst EmberCN, Tether currently holds an impressive 57,576 BTC, equivalent to approximately $2.4 billion. The average purchase price per Bitcoin stands at $22,480, indicating an 85% increase in value. This essentially translated to a $1.1 billion unrealized profit since the acquisition of these assets.

    The primary driver behind Tether’s substantial unrealized profit is the recent surge in Bitcoin’s price. The flagship asset briefly crossed the $42,000 mark this week before settling at its current price of $41,700, marking a notable 13.1% increase in the past seven days.

    Tether’s Bitcoin holdings can be divided into two categories: firstly, 53,492 BTC were set aside before March of this year; secondly, a strategic move was made in May 2023, wherein Tether committed to allocating up to 15% of its net realized profits continually into Bitcoin.

    Despite the volatility concerns of Bitcoin, Tether views it as a resilient, long-term investment. This decision aligns with the stablecoin’s overarching strategy to expand its portfolio beyond conventional assets such as cash and cash equivalents.

    Tether had previously clarified that the aim is to keep the Bitcoin portfolio value well below the size of the company’s total excess reserves, which accounted for $2.48 billion at the end of the first quarter of 2023, while BTC holdings accounted for $1.5 billion.

    Tether’s Paolo Ardoino then stated,

    “The decision to invest in Bitcoin, the world’s first and largest cryptocurrency, is underpinned by its strength and potential as an investment asset. Bitcoin has continually proven its resilience and has emerged as a long-term store of value with substantial growth potential. Its limited supply, decentralized nature, and widespread adoption have positioned Bitcoin as a favored choice among institutional and retail investors alike.”

    Tapping the Bitcoin Mining Sector

    In addition to boosting its Bitcoin holdings, Tether also doubled down on plans to inject more funds into Bitcoin mining as part of its expansion plans.

    Last month, the firm announced a cash surplus exceeding $3 billion in its attestation report with plans to dedicate $500 million to Bitcoin mining activities within the next six months.

    This allocation will be directed toward establishing Tether’s Bitcoin mining facilities and investing in pre-existing BTC mining enterprises. This includes a recent provision of a $609 million debt financing facility to the European Bitcoin miner, Northern Data Group, as part of Tether’s strategic initiatives.

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    Chayanika Deka

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  • Marathon Digital mined 1,187 BTC in November amidst record network difficulty

    Marathon Digital mined 1,187 BTC in November amidst record network difficulty

    Marathon Digital Holdings bolsters its position as North America’s most prominent public Bitcoin miner, producing 1,187 BTC in November and boosting its combined unrestricted cash and Bitcoin holdings to $802.3 million.

    Achieving a significant milestone, the company increased its domestic energized hash rate by 20% to 23.1 exahashes, completing the energization of its facility in Garden City, Texas. The miner’s November production slightly decreased from October’s figures, attributed to a 9% sequential increase in network difficulty. 

    This production includes contributions from its joint ventures in Abu Dhabi and Paraguay. In the U.S. alone, the company mined 1,151 Bitcoins, with transaction fees due to increased network activity contributing to around 12% of this total​​.

    As of Nov. 30, Marathon held 14,025 unrestricted Bitcoins. To cover its operating expenses, the company sold 700 Bitcoins, representing 59% of its monthly production. Furthermore, the company’s unrestricted cash and cash equivalents grew significantly, totaling $273.1 million at the end of November. The combined balance of unrestricted cash and Bitcoins surged from $620.3 million to $802.3 million over the month.

    The company’s financial strategy is aligned with preparing for the upcoming Bitcoin network halving event and seizing strategic opportunities, including potential industry consolidation.​


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    Mohammad Shahidullah

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  • Could Bitcoin Dominance Rejection Induce an Altcoin Rally? 

    Could Bitcoin Dominance Rejection Induce an Altcoin Rally? 

    In addition to its price hitting a 19-month high, Bitcoin dominance also hit local highs, topping 54%. However, a minor retreat in the metric and a potential BTC correction could be good news for altcoins.

    On Dec. 4, crypto trader Jacob Canfield commented on the dominance decline and potential for altcoin moves. 

    “I’m liking this Bitcoin dominance 4-hour rejection at prior resistance. This could mean a nice couple days of big altcoin moves.” 

    BTC prices have surged almost 14% over the past week, but altcoins have not really followed. 

    Still Early For Altcoins 

    Another chart that many analysts are sharing is the total market capitalization minus BTC. This shows all other crypto assets, including stablecoins, and it remains in the accumulation zone. 

    Trader and investor “EliZ” shared this chart, noting that it was approaching resistance and on the verge of a breakout. 

    On Dec. 4, analyst “Income Sharks” commented on the same chart: 

    “Missing out on a 9% move on Bitcoin won’t sting as much when some ALTS and Microcaps make a 900% move.”

    Moreover, many of the high-cap altcoins are still way down from their peaks. Ripple, Cardano, Dogecoin, Avalanche, and Polkadot are all more than 80% down from their all-time highs. Solana, Chainlink, and Polygon are still more than 70% down despite recent gains. 

    Bitcoiner Jimmy Song compared altcoin prices to the last time BTC was above $40,000, which was in May 2022.

    Most of them were much higher than today’s levels, but the bear market was intensifying at the time, and it was just before the Terra/Luna collapse, so it was not the best of comparisons. 

    Crypto Market Outlook 

    Crypto markets have remained flat on the day, with total capitalization pausing at $1.61 trillion. Bitcoin has reached resistance and was trading at $41,709 at the time of writing. 

    However, nearly all of the leading altcoins were in the red again, with 2-4% declines. There were larger losses for Solana, Chainlink, Polygon, and THORChain. 

    Bitcoin smart contract protocol Stacks (STX) were bucking the trend, surging 33% on the day. 

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  • The Bulls Are Back: Crypto Institutional Inflows Balloon To 2021 Levels

    The Bulls Are Back: Crypto Institutional Inflows Balloon To 2021 Levels

    Crypto investment products have experienced another week of inflows, bringing the run to 10 consecutive weeks. According to CoinShares’ latest report on digital asset investment funds, inflows into crypto products totaled $176 million last week, bringing the total inflow in 10 weeks to $1.76 billion. The timing is not a coincidence, as most cryptocurrencies turned green again last week in terms of price action.

    Total Crypto Inflows Hit $1.76 Billion In 10 Weeks

    After a lackluster action for most of the year and some weeks of net outflows, the most recent data shows smart money investors are betting big on crypto again. Investments in digital asset funds have been on the rise for the past two months, ignited by the crypto market bull run which started in the middle of October. As a result, the inflows have ballooned every week, breaking levels not seen since 2021’s crypto market bull run. 

    Digital asset investment funds ended November with an inflow of $176 million, although down from the $346 million registered in the week before. Most of the money last week went into Bitcoin, with the cryptocurrency seeing $133 million in inflows. 

    Bitcoin remains the most popular digital asset for institutions, and interest has really piqued with the applications of spot Bitcoin ETFs in the US waiting for approval from regulators. As a result, the crypto has strengthened since October, breaking various price levels and resistances, the latest being the $42,000 price level.

    The sentiment has also flowed into the altcoin market. Ethereum saw inflows of $31 million last week, bringing its 5-week inflow run to a total of $134 million. Multi-asset investment products that provide exposure to a basket of crypto assets saw $2.3 million in new investment. 

    Total market cap at $1.5 trillion | Source: Crypto Total Market Cap on Tradingview.com

    Solana and XRP saw inflows of $4.3 million and $0.5 million respectively. On the other hand, Litecoin saw outflows of $0.2 million, and Short Bitcoin products saw $3.6 million inflows after three consecutive weeks of outflows. 

    Most of the inflows came in from Canada, Germany, and the US, which saw inflows of $79 million, $57 million, and $54 million respectively. Australia and Sweden also saw outflows of $0.5 million and $0.2 million respectively. However, the overall trend shows institutions are still bullish on crypto in the long run.

    It’s exciting to see such numbers again, as they are reminiscent of past bullish sentiment in the crypto industry. According to CoinShares, this run of inflows is now the largest since October 2021, which saw the launch of the futures-based ETF in the US. 

    Assets under management have also risen by 107% this year and are now at $46.2 billion, but still below the $86.6 billion seen in 2021. However, this record is ready to be overtaken in the coming year, as the latest data provides further evidence that institutional interest in the crypto market will continue for a while.

    Featured image from CNBC, chart from Tradingview.com

    Scott Matherson

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  • Boomers Interested In Bitcoin, Market Won't Allow BlackRock To Buy BTC Below $60k

    Boomers Interested In Bitcoin, Market Won't Allow BlackRock To Buy BTC Below $60k

    As institutional interest in Bitcoin grows, Fidelity and BlackRock’s proposed spot Bitcoin Exchange-Traded Fund (ETF) faces an unexpected hurdle: the crypto market’s unwillingness to let go of the coin at bargain prices. 

    Bitcoin To $60,000 In Progress?

    According to Mike Alfred, who claims to be a value investor and a board director, the market will “unlikely” allow BlackRock to purchase BTC below $60,000. Taking to X on December 4, Alfred said BlackRock and other Wall Street players keen on issuing spot Bitcoin ETFs would have to “buy for Boomer’s 401k plans for at least $60,000.” 

    This preview stems from the rapidly growing demand among institutional investors, as seen by the number of Wall Street players willing to issue complex derivatives tailored for, among other investors, “baby boomers,” most of whom are “approaching retirement.” With their substantial retirement savings, baby boomers increasingly recognize BTC’s potential as a hedge against inflation and a store of value.

    Following Federal Reserve intervention during the COVID-19 pandemic, inflation rose to multi-year levels in 2021. To preserve purchasing power, the central bank began hiking interest rates. Although inflation has fallen and the economy stabilized, it remains higher than the target of 2%. The Fed continues to track this metric and may further intervene by raising rates to lower inflation. This might impact Bitcoin prices, as seen in the past months.

    Nonetheless, the potential influx of boomer money into Bitcoin via a Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) approved derivatives product is a big boost for the coin. Though the SEC has yet to authorize multiple spot Bitcoin ETFs, the crypto and Bitcoin market expects the strict regulator to greenlight the first product in the next few weeks. 

    BlackRock And Company To Buy BTC At A Premium

    Accordingly, ahead of this milestone development for the Bitcoin and crypto market, Alfred thinks BlackRock, Fidelity, and other players won’t secure Bitcoin at spot rates. Instead, the market anticipates that BlackRock, one of the world’s largest digital asset managers, will make their “bi-weekly purchases at prices above $60,000.”

    The coin is trading at April 2022 levels, ripping above $40,000 over the weekend as bulls step up. Looking at the BTC candlestick arrangement on the daily chart, the first clear resistance is around $48,000. 

    Bitcoin price trending higher on the daily chart | Source: BTCUSDT on Binance, TradingView

    The coin trades within a bullish breakout formation following gains above $32,000. As buyers step up and investors anticipate the SEC approving the first batch of spot Bitcoin ETFs, the coin will likely continue increasing toward all-time highs of around $70,000.

    Feature image from Canva, chart from TradingView

    Dalmas Ngetich

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  • Bitcoin, Cardano, Ethereum show bull market setup: analyst

    Bitcoin, Cardano, Ethereum show bull market setup: analyst

    The crypto analyst who runs the YouTube channel Crypto Capital Venture says he remains extremely bullish on Bitcoin and the wider crypto market, but cautioned viewers not to get overly excited amid the latest price surge.

    “I’m bullish. I’m so bullish,” the analyst, who goes by the name Crypto Capital Venture, stated in a live YouTube video on Sunday.

    If you’ve been watching my YouTube channel, you know, this is, if we go to the Bitcoin chart zoomed out, you know that on the weekly, on Bitcoin chart, come maybe January, the beginning of this year, January, 2023, I was saying the worst of it is over, 2022.

    The analyst believes, based on studying past market cycles, that 2022 marked the bottom of the latest crypto bear market. He says Bitcoin (BTC) and other major cryptocurrencies appear poised to enter their next bull cycle, which he predicts could see prices explode to new all-time highs.

    That year before the recession, that’s based off of decades and decades of macroeconomic data, right? And so that has played out really well. And we’re getting very close to the next bull market. We really are. In terms of where we are this cycle, you can just see it.

    The analyst explained that similar price spikes have occurred in past market cycles, only to be followed by sharp pullbacks. The analyst says he would not be surprised to see Bitcoin revisit lower support levels around $30,000 to $35,000 in the coming weeks.

    The analyst highlighted some key differences with this market cycle, including growing institutional interest and the possibility of SEC approval for a Bitcoin spot ETF in 2023. In his view, these developments could fuel dramatically higher prices both before and after Bitcoin’s next halving event in spring 2023.

    The analyst remains upbeat on the long-term outlook, stating multiple times that he expects this bull cycle to bring “the most fun we’ve ever had” tracking the crypto markets. For now, though, he preaches exercising patience and discipline amid the volatility.


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    Adrian Zmudzinski

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  • The crypto industry is in the dumps. So why is bitcoin suddenly flying high?

    The crypto industry is in the dumps. So why is bitcoin suddenly flying high?

    Although the cryptocurrency industry remains shadowed by recent blowups and controversy, the world’s most important token — bitcoin — is making a comeback. 

    The value of bitcoin soared to nearly $42,000 on Monday, marking the first time the digital currency cracked $40,000 in 18 months, price tracker CoinDesk Indices shows. 

    The resurgence stands in contrast to the questions that have dogged the sector since last year’s spectacular flameout of crypto exchange FTX, leading to the November conviction of founder Sam Bankman-Fried on seven counts of fraud. Also last month, Binance — the world’s largest cryptocurrency exchange platform — agreed to pay $4.3 billion after admitting that it violated U.S. laws to prevent money laundering and sanctions violations, with CEO Changpeng Zhao pleading guilty to one federal charge.

    Despite such scandals, bitcoin’s priced has soared 150% this year, although it remains down from a high of roughly $69,000 in late 2021.

    What is bitcoin again? 

    Bitcoin is the first cryptocurrency and was created in 2009. Cryptocurrencies are digital tokens that use peer-to-peer technology to facilitate instant payments without the need of a third party such as a bank or payment processor, according to bitcoin’s pseudonymous creator, Satoshi Nakamoto. 

    Unlike traditional money, cryptocurrencies can be used to purchase goods and services on the internet, in addition to being held as investments (like stocks). However, crypto prices are notoriously volatile, and investing in any kind of crypto can be risky, according to investment firm Charles Schwab. 

    There are more than 11,000 cryptocurrencies, but bitcoin is the most valuable (in dollar terms), in addition to having the largest market capitalization of any digital asset, data from crypto price tracker CoinGecko shows. 

    Why is bitcoin surging now? 

    Several factors are fueling bitcoin’s latest rally. Perhaps the most important are signs that major investment firms are set to get regulatory approval to offer spot bitcoin exchange traded funds — a pooled investment security that can be bought and sold like stocks. Federal regulators are expected to give the green light for several bitcoin ETFs as early as January, which could make investing in crypto more accessible to investors, Yiannis Giokas, a senior product director at Moody’s, told CBS MoneyWatch. 

    “As more and more managers venture into the bitcoin spot ETF space, more retail and institutional investors, even the more conservative ones, will feel a higher degree of comfort investing in this space,” he said. 

    Bitcoin prices are also benefiting from a growing conviction on Wall Street that the Federal Reserve is done hiking its benchmark interest rate now that inflation is receding and that the central bank could even start loosening monetary policy by mid-2024 to keep the economy on track. 


    Binance CEO pleads guilty to federal charges

    07:35

    When interest rates fall, investors are more likely to pour money into riskier assets such as crypto.

    “Lower rates are bullish for bitcoin,” Greg Magadini, director of derivatives at crypto data firm Amberdata, told CBS MoneyWatch.

    Giokas thinks 2024 could be a banner year for bitcoin, a proxy for how well the crypto market as a whole is doing. 

    Bitcoin “hit $40,000 for the first time in 2021, and every time it was followed by a bull run, so it’s a logical expectation from the markets that another run is on its way,” he said. 

    — The Associated Press contributed reporting.

    Elizabeth Napolitano


    elizabeth-napolitano-cbsmoneywatch.jpg

    Elizabeth Napolitano is a freelance reporter at CBS MoneyWatch, where she covers business and technology news. She also writes for CoinDesk. Before joining CBS, she interned at NBC News’ BizTech Unit and worked on the Associated Press’ web scraping team.

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  • Analyzing The Titans: How Bitcoin Whales Influenced The Surge To $40,000

    Analyzing The Titans: How Bitcoin Whales Influenced The Surge To $40,000

    Bitcoin and the crypto market continue to smash critical resistance levels and hit new yearly highs. The cryptocurrency stands closer to the $50,000 area as 2023 ends, and two major bullish catalyzers stand on the horizon.

    As of this writing, Bitcoin (BTC) trades at $41,800 with a 6% profit in the last 24 hours. In the previous seven days, BTC recorded an impressive 13% rally as analysts and the crypto community celebrated the beginning of a new bull cycle.

    BTC’s price trends to the upside on the daily chart. Source: BTCUSDT on Tradingview

    Bitcoin Whales Behind $40,000 Rally, Are More Profits In Store?

    Data provided by Ki Young Ju, CEO of crypto analysis firm CryptoQuant, indicates that Bitcoin whales have supported the current price action since August. At that time, the cryptocurrency re-took the higher area at $20,000 and stood below the critical resistance at $30,000.

    As Bitcoin trended to the upside, whales took on “giga long positions” potentially in preparation for the current rally. This risk-on behavior began more discretely when BTC touched $16,000.

    Young Ju tied the market activity to increased buying orders from US investors. On Coinbase, the price of Bitcoin “skyrocketed” in October 2023.

    Investors in the country have been buying more of the cryptocurrency in preparation for the spot BTC Exchange Traded Fund (ETF) approval and the Halving event. The latter of this event is the reduction of the rewards for mining BTC.

    Furthermore, the CryptoQuant CEO believes retail investors have yet to board the rally. As seen in the chart below, BTC’s Realized Cap stood below 0.1, indicating “low liquidity” from retail investors in the crypto market.

    Bitcoin price BTC BTCUSDT Chart 2
    BTC’s Realized Cap below 0.1 hints at retail investors’ low participation in the current PA. Source: CryptoQuant on X

    Game Is Not Over For BTC

    Additional data provided by Material Indicators confirmed the increasing buying pressure from whales. Analyst Keith Alan claimed that this behavior occurs to attract liquidity to the market.

    Once liquidity, mostly from retail investors, enters the market, whales can “distribute” their coins or “dump” on retail to take profit from their position. Via his X handle, the analyst stated the following regarding BTC’s potential to continue the uptrend:

    (…) because we now have ~$86M in near range #BTC bid liquidity, I’m considering buying this pullback because it doesn’t appear the game is over yet.

    Cover image from Unsplash,chart from Tradingview

    Reynaldo Marquez

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  • Blockstream's Adam Back bets Bitcoin could reach $1m after 2024 halving

    Blockstream's Adam Back bets Bitcoin could reach $1m after 2024 halving

    In a recent series of X posts, the head of Blockstream Adam Back said the largest by market cap cryptocurrency might surge to $100k before the 2024 halving.

    According to the Blockstream CEO, Bitcoin (BTC) “will surely flip physical gold sooner or later” as the probability of this scenario is high enough for “this halving cycle.” In an X post on Sunday, Dec. 3, 2023 Back said he expects the top cryptocurrency to set a new all-time high at $100,000 even before the 2024 halving.

    As per Back, Bitcoin will benefit most from an intergenerational transfer of wealth as Gen X and millennials are likely to liquidate their portfolios in stocks, bonds and pension pots. He also noted that some people have already started “selling gold to buy Bitcoin,” opening doors for the cryptocurrency to reach the $1 million mark after the halving, which is expected to arrive in April 2024.

    Meanwhile, Bitcoin surpassed the $41,000 mark for the first time since the Terra collapse in May 2022, putting 80% of the asset’s holders in profit. According to data from IntoTheBlock, Bitcoin’s profitability has reached a two-year-high, while the number of active BTC wallets registered a 6.4% rise — hiking from around 863,600 to 919,410 daily active addresses.

    Analysts at Matrixport believe that the largest crypto can reach $60,000 by April 2024 and double that price mark by the end of 2024 as the market has entered a new phase of a bull run.

    Galaxy Digital Founder and Chief Executive Mike Novogratz is also bullish on Bitcoin, saying the top crypto is poised to reach its old highs a year from now, should the U.S. Securities and Exchange Commission (SEC) give the go-ahead to spot Bitcoin exchange-traded funds (ETFs).


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    Denis Omelchenko

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  • Bitcoin Price Blasts Past $41,500: Here Are The Reasons

    Bitcoin Price Blasts Past $41,500: Here Are The Reasons

    In a remarkable surge, Bitcoin’s price has soared past the $41,500 mark, fueled by a confluence of factors ranging from market anticipation of a Bitcoin spot ETF to broader financial trends. Here’s a detailed analysis of the key reasons behind this rally:

    #1 Spot Bitcoin ETF: The Anticipation Game

    The buzz around the approval of a spot Bitcoin ETF remains probably the most significant driver of the recent price surge. Although there hasn’t been a specific update, the market anticipation is palpable, with a FOMO effect kicking in. Last week, Bloomberg analyst James Seyffart suggested that a spot ETF is likely to be approved between January 8 and 10, causing the market to react.

    Renowned Bitcoin analyst Willy Woo mirrored the anticipation with this statement, “It’s very likely we are on the eve of a Bitcoin spot ETF. The first commodity ETF was SPDR Gold Trust. It provided a simple way for investors to access gold in their portfolio. When it launched gold went on to an 8 year rally with no single down year between 2005 – 2012.”

    gold spot price rally after first ETF | Source: X @woonomic

    #2 Gold’s Meteoric Rise And Its Correlation With BTC

    The unexpected rise of gold, surging by 3.5% in just 30 minutes to a new all-time high on a Sunday afternoon, may have also had repercussions for Bitcoin. This rapid ascent in gold’s value could signal more than just market fluctuations; it could reflect deeper economic shifts that have direct implications for Bitcoin.

    Crypto Analyst @TheFlowHorse remarked, “Unless someone is getting carried out right now after shorting Gold, this is saying something important. Gold doesn’t just arbitrarily rip on a Sunday like this unless it means something.” Tom Crown, founder and CEO of Crown Analysis, added, “Something VERY BIG is coming tomorrow. Gold just BLASTED past all-time highs on a Sunday night. Someone knows something.”

    #3 Bitcoin Short Squeeze

    The liquidation of $65.15 million in Bitcoin short positions, according Coinglass data, has further propelled Bitcoin’s price. The short squeeze, combined with strong spot demand, has been a key factor. Crypto analyst Skew noted, “Another big short squeeze pushing price above $40K. Slight perp premium on Binance during the squeeze, indicating spot selling into the short squeeze.”

    Bitcoin short liquidations
    Bitcoin liquidations | Source: Coinglass

    #4 Whales And Institutional Buyers

    The current surge in Bitcoin’s price has been significantly influenced by whales and institutional buyers. Market analyst Skew pointed out their impact, stating, “Someone is still aggressively chasing price here. More importantly if said large market entity actually allows some bids to get filled or not. IF filled then expected for them to push the price higher. Clearly $40K is the price for institutional players.”

    Keith Alan, co-founder of Material Indicators, further emphasized the role of these large holders, tweeting, “Bitcoin Whales just blasted through $40k.” His statement underlines the significant influence whales have in driving up Bitcoin’s price. He added, “Locking in some profit here. $42k is a high probability, but definitely not guaranteed.”

    Additionally, GreeksLive, a trading tools provider, noted the broader market trend, stating, “Bitcoin broke through $41,000, Ethereum broke through $2,200… The giant whale once again showed a sense of smell before the market.”

    #5 Liquidity: The Underlying Force

    The surge in Bitcoin’s price is also significantly influenced by global liquidity conditions, a factor often overlooked but crucial in understanding BTC and cryptocurrency market dynamics. Zerohedge highlighted the scale of this influence in a post: “In November, central banks added $350BN in liquidity, the third-largest increase since March.”

    This massive injection of liquidity by central banks around the world plays a pivotal role in asset price movements, including cryptocurrencies like Bitcoin. David Marlin, CEO of Marlin Capital, pointed out the significance of this trend in financial conditions, “US Financial Conditions eased 90 bps in November, the largest monthly easing on record (dating back to 1982).”

    Adding to this narrative, cryptocurrency expert Charles Edwards commented on the historic nature of this easing, saying, “November saw the largest easing in over 40 years!” Such a significant easing of financial conditions suggests a highly conducive environment for investment in assets like Bitcoin, which are seen as hedges against inflation and currency devaluation.

    Arthur Hayes, founder of BitMEX, summed up the sentiment by stating, “Eye on the prize. RRP balances continue to fall and BTC continues to pump. Yachtzee!!!”

    At press time, BTC traded at $41,505.

    Bitcoin price
    Bitcoin price, 1-week chart | Source: BTCUSD on TradingView.com

    Featured image from Shutterstock, chart from TradingView.com

    Jake Simmons

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  • Bitcoin Price Surges Over 5% To Clear $40k, Why BTC Bulls Are Not Done Yet

    Bitcoin Price Surges Over 5% To Clear $40k, Why BTC Bulls Are Not Done Yet

    Bitcoin price is up over 5% and it broke the $40,000 resistance. BTC is rising and might soon climb higher toward the $42,000 resistance.

    • Bitcoin broke the $38,500 resistance zone and surged above $40,000.
    • The price is trading above $40,000 and the 100 hourly Simple moving average.
    • There is a connecting bullish trend line forming with support near $40,100 on the hourly chart of the BTC/USD pair (data feed from Kraken).
    • The pair could continue to rise toward the $42,000 resistance.

    Bitcoin Price Clears $40K

    Bitcoin price remained strong and was able to clear the $38,500 resistance zone. BTC bulls gained strength and they were able to clear the $39,500 resistance zone.

    Finally, the price surged above the $40,000 resistance zone. It is up over 5% and a new multi-month high is formed near $40,890. The price is now consolidating gains above the 23.6% Fib retracement level of the recent increase from the $39,360 swing low to the $40,890 high.

    Bitcoin is also trading above $40,000 and the 100 hourly Simple moving average. Besides, there is a connecting bullish trend line forming with support near $40,100 on the hourly chart of the BTC/USD pair. The trend line is close to the 50% Fib retracement level of the recent increase from the $39,360 swing low to the $40,890 high.

    On the upside, immediate resistance is near the $40,850 level. The first major resistance is forming near $41,200, above which the price might rise toward the $41,500 level.

    Source: BTCUSD on TradingView.com

    A close above the $41,500 resistance might send the price further higher. The next key resistance could be near $42,000, above which BTC could rise toward the $42,400 level.

    Are Dips Supported In BTC?

    If Bitcoin fails to rise above the $40,850 resistance zone, it could start a downside correction. Immediate support on the downside is near the $40,500 level.

    The next major support is near $40,000 and the trend line. If there is a move below $40,000, there is a risk of more downsides. In the stated case, the price could drop toward the $39,720 support in the near term.

    Technical indicators:

    Hourly MACD – The MACD is now gaining pace in the bullish zone.

    Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

    Major Support Levels – $40,500, followed by $40,000.

    Major Resistance Levels – $40,850, $41,200, and $42,000.

    Aayush Jindal

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  • Here Are Four Crypto Assets Poised For A Major Price Explosion – Analyst

    Here Are Four Crypto Assets Poised For A Major Price Explosion – Analyst

    The general crypto market has recorded a slight boost in the last week as market leader Bitcoin surged by 4.44% to trade above the $39,000 price mark. As bullish sentiments continue to rise, popular crypto analyst Austin Arnold has now highlighted four tokens that offer investors a high potential for profitability in the coming weeks.

    Top Crypto Tokens Set For A Massive Price Rally – Austin Arnold

    Speaking in a recently published video on his YouTube channel Altcoin Daily, Arnold stated that certain tokens are “set to rip through the crypto markets.”

    The first cryptocurrency he highlights is Injective (INJ), a layer 1 blockchain and decentralized protocol backed by Binance, Pantera, and renowned tech billionaire Mark Cuban. Arnold states that Injective’s potential for a massive price surge is tied to multiple factors, including its impressive tokenomics facilitated by its buyback and burn auction system. 

    This is a process in which Injective utilizes 60% of all fees collected across its multiple native dApps to buy back INJ from the market. The bought INJ is then burned, allowing the token to maintain a controlled supply and increase market value. 

    Furthermore, Injective currently possesses one of the lowest network fees in the market, which is considered an attractive feature for most users and developers. In addition, the Cosmos-SDK built protocol is also set to undergo its largest mainnet upgrade – Volan Upgrade – in the next few weeks.

    Joining Injective on Arnold’s list is Chainlink (LINK), an Ethereum-based decentralized blockchain oracle network. The crypto analyst notes that Chainlink recently celebrated a milestone of 2,000 integrations and projects, which only underlines the network’s appeal to developers and the wider crypto community. 

    Furthermore, Arnold lauds Chainlink for its multiple strategic partnerships with major traditional institutions, including the SWIFT banking system and the Depository Trust and Clearing Corporation (DTCC), which could drive institutional adoption of the crypto project. 

    In addition, Chainlink recently launched an upgraded staking mechanism, which introduces greater flexibility, better security guarantees for oracle services, and a modular architecture, all of which Arnold believes’ contributes to the cryptocurrency’s potential for massive price gain soon.

    Bitcoin And Ethereum Await Spot ETF Boost

    The final cryptocurrencies on Austen Arnold’s list are, unsurprisingly, the two biggest assets in the market, namely Bitcoin and Ethereum.

    For Bitcoin, The crypto analyst notes that crypto whales have been stocking up their supply of the premier cryptocurrency, citing an example of Michael Saylor’s Microstrategy. In addition, he also references an impending rise in BTC’s institutional demand, which hinges on the approval of a spot exchange-traded fund (ETF).

    In addition, Arnold pinpoints there is also a rising interest in Ethereum as more asset managers continue to approach the US Securities and Exchange Commission with applications to launch an Ether Spot ETF.  This development was revealed by American investor Ric Edelman, who personally claims to be more excited about Ethereum than Bitcoin, as it offers more technological capability and commercial applications. 

    BTC trading at $39,491 on the daily chart | Source: BTCUSD chart on Tradingview.com

    Featured image from iStock, chart from Tradingview

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  • Bitcoin Bullish Surge Ahead: Deribit Predicts Major Price Leap In Early 2024

    Bitcoin Bullish Surge Ahead: Deribit Predicts Major Price Leap In Early 2024

    A recent analysis by Deribit, a leading derivatives exchange, suggests a bullish sentiment for Bitcoin as we approach early 2024. This optimism is rooted in the current Bitcoin put-call options ratio, a critical option market metric.

    Deribit’s Insight: Bitcoin Calls Outpace Puts Signaling Market Confidence

    Notably, options are financial instruments that give traders the right, but not the obligation, to buy (call options) or sell (put options) an underlying asset at a specified price within a set time frame. The put-call ratio is used in options trading to measure market sentiment.

    A put option signifies a bet on the price of an asset falling, while a call option represents a wager on its rise. A lower put-call ratio indicates that more traders are betting on the asset’s price increasing rather than decreasing.

    Deribit’s analysis shows an increasing trend in the number of call options outstripping put options in Bitcoin’s options market. Luuk Strijers, Chief Commercial Officer at Deribit, highlighted that the put-call ratio for Bitcoin has consistently hovered “between 0.4 and 0.5” throughout the year.

    This trend is particularly noticeable for options expiring in March and June 2024, suggesting that investors are increasingly using call options to position for a potential appreciation in Bitcoin’s value during this period.

    The put-call options ratio falling below one is a bullish market indicator, as it shows that call volume, or bets on the price increase, surpasses the put volume, which are bets on the price decrease. According to Deribt, Bitcoin’s put-call ratio currently stands at 0.42, as of today.

    A Surge In Crypto Derivatives Activity

    Meanwhile, November has seen significant activity in the crypto derivatives market, as noted by Strijers. The Deribit executive attributes this increased market activity to higher levels of “implied volatility (DVOL),” which have spurred “opportunities and overall market volumes.”

    Bitcoin open interest by expiration. | Source: Deribit

    The expiration dates of the upcoming options, especially the significant one on December 29, are expected to maintain the heightened interest and activity in the market. With $5.7 billion in Bitcoin options and $2.7 billion in Ethereum options set to expire at the end of December, the market is poised for notable movements.

    Bitcoin open interest based on previous day.
    Bitcoin open interest based on the previous day. | Source: Deribit

    Bitcoin maintains its upward momentum, advancing by 1.8% over the past 24 hours. With Bitcoin currently trading at $38,344, the asset has sustained the gains achieved at the close of the previous month.

    Bitcoin’s trading volume significantly reflects heightened market activity, suggesting ongoing buying pressure. In just the last day, trading volumes have surged from around $11 billion earlier in the week to over $21 billion, a noteworthy indication of increasing investor engagement.

    Bitcoin (BTC) price chart on TradingView
    Bitcoin (BTC) price is moving sideways on the 4-hour chart. Source: BTC/USDT on TradingView.com

    Featured image from Unsplash, Chart from TradingView

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  • Bitcoin Ownership More Diverse Than Expected, Reveals Grayscale Report

    Bitcoin Ownership More Diverse Than Expected, Reveals Grayscale Report

    A recent report from Grayscale Investments revealed an unexpected diversity in Bitcoin (BTC) ownership, with 74% of addresses holding less than 0.01 bitcoin, equivalent to approximately $380.

    Grayscale’s research dispels the inaccurate public belief that Bitcoin is predominantly owned by a few individuals, revealing around 40% of BTC’s supply is concentrated among institutions like exchanges, miners, governments, public companies, and long-term holders.

    Bitcoin’s Widespread Ownership

    As of November 6th, 2023, 74% of Bitcoin addresses hold less than 0.01 BTC, equivalent to approximately $380 at the time of writing.

    The statistic highlights the accessible nature of Bitcoin, contrasting with traditional high-risk, high-return assets like private equity and venture capital, often limited to accredited investors. Bitcoin, unlike these traditional assets, is available to a global audience with internet access.

    An analysis of the top BTC wallet addresses reveals that the largest holders are not individual investors but institutions such as crypto exchanges and government entities.

    The report reveals that about 40% of Bitcoin’s total supply is held by identifiable groups and public companies like Tesla and MicroStrategy, mining firms, ETFs, and dormant addresses.

    The Concept of “Sticky Supply”

    Another takeaway from the report is the concept of “sticky supply,” referring to bitcoin held for long-term purposes and less likely to be sold in the short term. This includes 14% of the supply, which hasn’t been touched in over a decade, possibly such owned by Bitcoin’s mysterious creator, Satoshi Nakamoto, or simply lost BTC.

    Regarding supply dynamics, specific segments like miners and exchanges, which account for 20% of the total Bitcoin supply, exhibit price inelasticity. The characteristic suggests these groups are less likely to sell their holdings in response to price fluctuations, further contributing to the limited liquid supply of Bitcoin.

    The aspect of sticky supply is relevant in the context of upcoming events, such as the potential approval of a spot Bitcoin ETF in the US. Spot ETF approvals could further tighten Bitcoin’s already constrained supply, amplifying the asset’s demand-related price dynamics.

    The research concludes that the diverse and distributed nature of BTC ownership and the growing presence of institutional investors signifies a significant shift in the cryptocurrency landscape.

    As we approach significant milestones like the 2024 Bitcoin halving and potential regulatory changes, BTC’s ownership and supply dynamics could play a pivotal role in shaping its market behavior.

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  • Crypto Twitter Rebukes BBC “Swimming Pool” FUD About Bitcoin's Energy Use

    Crypto Twitter Rebukes BBC “Swimming Pool” FUD About Bitcoin's Energy Use

    Bitcoiners are blasting the British Broadcasting Corporation (BBC) following the outlet’s recent article discussing the blockchain network’s energy consumption.

    The public broadcaster cited a study claiming that every Bitcoin transaction consumes “a back yard swimming pool” worth of water, though critics say that the claim is based on “junk science.”

    Does Bitcoin Use Too Much Water?

    As published on Wednesday, the BBC’s article claimed that Bitcoin’s water consumption relates to the sources of electricity that secure its blockchain through “proof of work” mining – Bitcoin’s internal mechanism that relies on energy to ensure that nobody can spend the same transaction twice.

    That includes water consumed at any venues connected to the mining process – such as gas and coal plants, hydroelectric damns, or water used to cool Bitcoin mining machines themselves.

    According to the reference study published in Cell Reports Sustainability, this amounted to 1,600 gigalitres of water in 2021 and could surpass 2,200 gigalitres in 2022.

    Yet there’s a few glaring issues: firstly, the study was written by Alex de Vries – an employee of the Dutch Central Bank who has a history of wildly inaccurate predictions about Bitcoin’s energy consumption and climate impact.

    As noted by CH4 Capital co-founder Daniel Batten, de Vries estimated in 2017 that Bitcoin mining would devour 50% of the world’s energy by the year 2020 – a prediction that missed by 2509x.

    “Had the BBC done their homework, they would have uncovered de Vries’ history as Central Bank lobbyist against Bitcoin,” wrote Batten. The co-founder’s fund invests in companies that use purified landfill gas to mine BTC, which would otherwise be flared off and pollute the climate through methane emissions.

    The author’s figure is also based on a flawed metric: Bitcoin does not consume energy on a per-transaction basis, but is instead based on the miners using the network to earn BTC.

    Though some miner revenue is based on network transaction fees, the vast majority still comes from a fixed block reward that exists independently of transaction volume.

    Other outlets have already cited de Vries and exaggerated his claim even further, stating that a single Bitcoin “trade” uses a swimming pool of water. As of today, most Bitcoin trades take place on centralized exchanges rather than directly on the blockchain, meaning they’re completely removed from the mining process.

    Familiar FUD for Bitcoiners

    Recent estimates from Bloomberg have found that Bitcoin mining boasts a >50% green energy mix worldwide – more than virtually any other industry on the planet. Survey data from the Bitcoin Mining Council would support this figure, with recent estimates as high as 59.9%.

    Nevertheless, Bitcoiners are accustomed to bad press about the network’s electricity use. In 2021, Elon Musk famously stopped accepting BTC for car payments at Tesla due to environmental concerns.

    A year later Ripple co-founder Chris Larsen funded a $5 million public campaign to end Bitcoin mining in collaboration with GreenpeaceUSA and the Environmental Working Group.

    So far, the online Bitcoin community has laughed at lobbyist efforts to change Bitcoin’s code – and they’ve done the same with the BBC’s latest piece.

    “We almost had decentralized digital cash but it evaporated all of the world’s fresh water resources first,” wrote Dylan LeClair, Bitcoin analyst for UTXO Management, on Wednesday. “Thankfully the BBC is sounding the alarm on this.”

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  • Mystery Bitcoin Whale Who Bought 10,000 BTC Has Been Exposed

    Mystery Bitcoin Whale Who Bought 10,000 BTC Has Been Exposed

    The attention of the crypto community has been drawn to a particular whale that has been accumulating Bitcoin for some time now. The magnitude of the whale’s holdings has left many wondering who it might be and the reason for the accumulation. 

    Bitcoin Whale Accumulates Over 10,000 BTC In November

    In a post on his X (formerly Twitter) platform, popular Bitcoin investor Lark Davis revealed details about the “mystery whale” who had been accumulating Bitcoin. Interestingly, the wallet (bc1qch) had accumulated over 10,000 BTC in November. On-chain data also showed that the wallet currently holds over 12,000 BTC ($460 million). 

    Following this revelation, many began to speculate on who the owner of the wallet was and the reason for such accumulation. Lark suggested that it could be institutional investors looking to “front-run the Spot Bitcoin ETF approval.” Some were of the opinion that it could be one of the Spot Bitcoin ETF filers who were preparing ahead of a possible approval.  

    Irrespective of who the owner was, many felt it was a good sign of things to come for the crypto market. That is because the accumulation showed that there was still a huge demand for the flagship cryptocurrency. One could have also inferred that the whale was possibly loading up their bags ahead of the bull run which some project is around the corner. 

    The bullish sentiment was also ignited by the fact that the wallet had not sent out any BTC since it began accumulation at the end of October.  That instantly suggests that the whale was in it for the long term rather than looking to make quick profits. 

    BTC price crosses $38,500 | Source: BTCUSD on Tradingview.com

    BitMEX The Mystery Whale

    The mystery around who the whale might be seems to have been resolved. The wallet is reported to belong to the crypto exchange BitMEX. The exchange is also said to have been simply moving its Bitcoin holdings to this new wallet, which forms part of the exchange’s cold wallet.  

    This is a real possibility, considering that some of the inflows into the wallet came from a particular BitMEX wallet (bc1qm). ZachXBT, a prominent blockchain investigator, also stated that the wallet belongs to the crypto exchange. He referred to an X post, which noted that the wallet address in question was included in BitMEX’s proof-of-reserves. 

    If so, then there isn’t so much meaning to read into the accumulation. It has become standard procedure for these exchanges to have proof of reserves as evidence of enough liquidity on their platform. These reserves are usually proportional to the users’ assets on the exchange. 

    Featured image from ACS Information Age, chart from Tradingview.com

    Scott Matherson

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  • 3 Bitcoin-Like Proof Of Work Altcoins That Could Make You A Millionaire In 2024

    3 Bitcoin-Like Proof Of Work Altcoins That Could Make You A Millionaire In 2024

    Bitcoin is still the leading proof of work blockchain and has already made massive moves over the years, with countless millionaires at the same time. However, with the price of Bitcoin having moved so much already, the upside is fairly limited, especially for crypto investors who do not have ample buying power to make a Bitcoin investment worth their while.

    In this vein, altcoins offer the best opportunity for smaller and retail investors to make the most money. But not just any altcoins; these coins also employ the proof of work mechanism, just like Bitcoin, making them a good choice, especially when they are newly launched.

    QUBIC: A Proof Of Work Coin Like Bitcoin

    The Qubic (QUBIC) coin is already making the rounds on social media platforms such as X (formerly Twitter) and with good reason. The blockchain uses a proof of work mechanism like Bitcoin. Led by IOTA co-founder Dominik Schiener, it has already garnered a reasonable following based on Schiener’s reputation.

    The coin is still trading well below $0.1 which could make it a good buy in the long run. With a current circulating supply of 71.425 trillion, its current market cap is currently sitting at around $200 million. 16% of the total supply has reportedly been burned already.

    Nexa (NEXA) Leads POW Altcoins

    Next (NEXA) is another proof of work blockchain, but unlike Bitcoin, it uses the UTXO Layer. This means that Nexa is a proof of work blockchain that is also able to support native tokens and smart contracts. To mitigate the problem of scalability often encountered by the likes of Bitcoin and Ethereum, Nexa employs Signatures and UTXO lookups.

    NEXA price at $0.000013 | Source: NEXAUSDT on Tradingview.com

    The Nexa token is currently trending below one cent with an around $35 million market cap at the time of writing. Given the kind of run that Kaspa (KAS) had even through a bear market, it puts in perspective the opportunity that lies with this token.

    Firo (FIRO)

    Firo (FIRO) is another proof of work coin that also holds a lot of promise among the altcoins that fall into this category. It rebranded from ZCoin and is a privacy-first coin, meaning it mixes two of the most sought-after attributes right now in the crypto market.

    Its price is $1.87 with a fully diluted market cap of under $40 million. This makes it the coin on this list with the lowest fully diluted market cap. Its price has been relatively stable for the last week, which could suggest that accumulation is happening ahead of a possible breakout.

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  • MicroStrategy apes $593m into Bitcoin

    MicroStrategy apes $593m into Bitcoin

    Michael Saylor’s digital software giant bought 16,130 BTC, increasing the worth of the company’s total Bitcoin holdings to over $6 billion at current prices.

    MicroStrategy, one of the largest corporate holders of Bitcoin (BTC), bought more of crypto’s leading token by market cap according to founder Michael Saylor and a Nov. 29 filing with the Securities and Exchange Commission (SEC).

    Saylor’s firm purchased an additional 16,130 BTC at an average price of $36,785 per Bitcoin. This scoop raised MicroStrategy’s total Bitcoin portfolio to some 174,530 coins acquired for  $30,252 on average.

    As crypto.news reported, MicroStrategy spent $5.3 million bolstering its BTC holdings following the close of Q2 2023.

    With Bitcoin’s price trading above $37,600 at press time, per Coingecko, MicroStrategy’s BTC net worth sits around a staggering $6.5 billion. The company started buying Bitcoin in 2020 amid global economic uncertainty as a means of hedging its balance sheet against rising inflation. 

    Since then Bitcoin has increased in value severalfold, peaking at $69,000 during the height of crypto’s bull run in 2021 and possibly making its way back to all-time highs on the back of spot Bitcoin ETF optimism.

    BTC has recorded price rallies in recent months due to news and speculations surrounding Bitcoin ETF applications filed by Wall Street titans, such as BlackRock. Crypto-native entities like Grayscale and Hashdex have also submitted bids for the same product, which experts say would attract billions of dollars into crypto. 

    BlackRock and other issuers have modified their respective filings in response to SEC feedback, a move that has likely increased anticipation that approvals could roll out sooner rather than expected.


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  • Dormant Bitcoin Whale Transfers $137 Million in BTC After 4 Years

    Dormant Bitcoin Whale Transfers $137 Million in BTC After 4 Years

    A Bitcoin wallet address has sprung back to life after approximately four years of inactivity.

    The dormant whale transferred its entire stash of 3,623 BTC – worth around $136.94 million – to two new wallets. On-chain data suggest that the whale amassed 3,623 BTC worth almost $25 million between October 25, 2018, and December 31, 2019. During this timeframe, Bitcoin was trading on average at $6,889.

    • As reported by Lookonchain, the investment has skyrocketed to a staggering $136.94 million, considering the current market price, marking a profit of around $112 million.
    • According to data compiled by BitInfoCharts, the whale was sitting on a profit of $244 million in BTC during the bull run in November 2021 when Bitcoin exchanged hands at $67.5k.
    • The substantial movement of funds introduces an interesting aspect to the market. Deciding to use or move dormant coins is often complex and depends on individual circumstances and various factors.
    • For instance, a significant increase in Bitcoin’s value might lead owners to sell or trade their inactive assets to capitalize on profit opportunities.
    • Amidst market recovery, 2023 witnessed a flurry of mysterious wallet movements from previously dormant whales.
    • Earlier this month, three Bitcoin whale addresses recently moved a total of 6,500 Bitcoins to new wallets, with a combined value of around $230 million.
    • On September 19th, a dormant Bitcoin address transferred over $46 million worth of crypto after six years, sparking concerns of intense sell pressure in the market.
    • Another whale inactive for more than a decade woke up from its slumber in July to transfer $31 million in BTC.
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  • Bitcoin Price Stalls Below $38,000 Amid BlackRock-SEC Talks

    Bitcoin Price Stalls Below $38,000 Amid BlackRock-SEC Talks

    The Bitcoin price rose to $38.475 yesterday, marking a marginally higher high for the year. Nevertheless, the price did not manage to close the day above the important $38,000 mark. Shortly before the end of the day, the bears managed to push the price down again.

    As crypto analyst Daan Crypto Trades remarked, “Market does its best to shake out everyone trying to pre-position for a possible Bitcoin ETF approval. It’s just free liquidity for the MMs/Whales. Sweep highs, trap longs, squeeze out longs, bait shorts, front run lows and repeat the whole process.”

    Bitcoin price | Source: X @DaanCrypto

    BlackRock Argues With SEC Over Details Of Spot Bitcoin ETF

    In a notable development, BlackRock, the world’s largest asset manager, has been again actively engaged in discussions with the US Securities and Exchange Commission (SEC) concerning the structure of its spot ETF yesterday.

    Eric Balchunas, senior ETF analyst at Bloomberg, revealed, “BlackRock met with the SEC’s Trading & Markets division again yesterday and presented them with a ‘revised’ in-kind model design based on Staff’s comments at their 11/20 meeting.” This revised model includes a notable change in the process, specifically at ‘Step 4’, which is the offshore entity market maker acquiring Bitcoin from Coinbase and then pre-paying in cash to the US registered broker dealer who is not allowed to touch BTC.

    James Seyffart, another Bloomberg analyst, highlighted the ongoing negotiations, adding, “More confirmation that Issuers are still meeting with the SEC. BlackRock/Nasdaq still pushing for In-Kind creation & redemption. Seems like SEC hasn’t budged on cash creates demands if this was the primary focus of the meeting. At least not before yesterday, Interesting days ahead!”

    The original “In-Kind Redemption” flow had Market Maker’s Broker/Dealer entity (MM-BD) placing an order for redemption through the Authorized Participant (AP), who approves the order, allowing MM-crypto to borrow Bitcoin (or cash) to sell short. This redemption flow had potential balance sheet impacts and risks that the SEC was concerned about.

    BlackRock has now proposed a “Revised In-Kind (‘Prepay Model’)” Redemption flow. This new model involves MM-crypto delivering cash to MM-BD instead of Bitcoin, and MM-BD then delivers ETF shares to the Transfer Agent via API. The Bitcoin custodian is instructed by the issuer to transfer Bitcoin to MM-crypto, who then closes the short position in BTC.

    The benefits of this revised model are manifold. It aims to lower transaction costs and shifts the execution risks from investors to crypto market makers. It also claims to provide superior resistance to market manipulation and remove the need for issuers to finance or pre-fund sell trades. The reduction in risks of operating events and the simplification across the ecosystem could mean lower variance on how In-kind models can be executed versus cash models.

    BlackRock Bitcoin ETF
    BlackRock’s Bitcoin ETF structure “in-kind” | Source: X @EricBalchunas

    90% Odds Of Approval Remain

    Should the SEC approve this revised model, it could herald the introduction of the first US-based spot Bitcoin ETF, a significant milestone that would allow investors to gain direct exposure to Bitcoin rather than through derivative instruments like futures. Despite these developments, there remains a level of uncertainty surrounding the SEC’s stance on the matter, particularly regarding the implications of spot Bitcoin exposure for retail investors through an ETF.

    Recent leaks suggested the SEC might prefer cash creation processes over in-kind Bitcoin transfers, a move that could significantly alter the landscape for ETF issuers and broker-dealers dealing with Bitcoin. Nonetheless, Bloomberg’s ETF analysts have reiterated their 90% odds for a spot ETF approval by January 10 yesterday.

    At press time, BTC traded at $37,728.

    Bitcoin price
    BTC price falls below $38,000, 4-hour chart | Source: BTCUSD on TradingView.com

    Featured image from Shutterstock, chart from TradingView.com

    Jake Simmons

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