On December 5, 2023, Lugano, a Swiss City, announced the incorporation of the cryptocurrencies Bitcoin (BTC) and Tether (USDT) for tax and other municipal fee payments.
This makes part of Lugano’s collaborative plans with Tether, Plan B, fashioned to revitalize the City’s financial system using Bitcoin tech.
Lugano Dives into the World of Crypto
Before the latest developments, Lugano only allowed crypto payments to be made directly on the City’s official online portal. However, the release extends the possibility to every invoice, regardless of the nature or amount.
According to the statement, Lugano citizens and companies can now pay their expenses by scanning the invoice QR code and leveraging their favorite mobile wallets. The two assets accepted based on the statement are Bitcoin (BTC) and Tether (USDT), behemoths in their respective asset classes.
The statement by Bitcoin Suisse notes that the latest update is part of Lugano’s Plan B, a collaboration with Tether, to integrate BTC into daily life.
This release also points out the role of Bitcoin Suisse in Lugano’s Plan B. Bitcoin Suisse will handle the technical part of the payment solution to offer a convenient option for accepting payments with BTC and USDT.
The Chief Product Officer at Bitcoin Suisse, Armin Schmid, expresses his delight in backing Lugano in its mission to accelerate the use of Blockchain tech. He said:
“It is great to see that more and more Swiss municipalities are offering payments in cryptocurrencies as an option available to both citizens and companies, complementing traditional payment methods such as post-office counters and e-banking platforms.”
Bitcoin Suisse stresses its pleasure in providing technical infrastructure for crypto payments. Moreover, it boasts of providing crypto payments to other Swiss Cantons, municipalities, and cities.
Switzerland Going All-In with Crypto
Lugano is not the first Swiss City to take this path. As early as 2021, Zug City had already begun accepting Bitcoin and Ethereum for tax settlements. The Canton of Zug and the municipality of Zermatt have already implemented the system.
Switzerland has been ahead of the curve in adopting crypto assets for some time.
Last month, one of the largest Swiss cantonal banks, St. Galler Kantonalbank, announced the official dawn of Bitcoin and Ethereum trading and custody services for several clients.
SPECIAL OFFER (Sponsored)
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
Binance founder CZ must stay in US until sentencing, judge orders
Binance founder Changpeng “CZ” Zhao has been ordered to stay in the United States until his sentencing in February, with a federal judge determining there’s too much of a flight risk if the former crypto exchange CEO is allowed to return to the United Arab Emirates. On Dec. 7, Seattle District Court Judge Richard Jones ordered Zhao to stay in the U.S. until his Feb. 23, 2024 sentencing date. He faces up to 18 months in prison after pleading guilty to money laundering on Nov. 21 and has agreed not to appeal any potential sentence up to that length.
House committee passes bill to ‘preserve US leadership’ in blockchain
A United States Congress committee has unanimously passed a pro-blockchain bill, which would task the U.S. commerce secretary with promoting blockchain deployment and thus potentially increase the country’s use of blockchain technology. The act covers an array of actions the commerce secretary must take if passed, including making best practices, policies and recommendations for the public and private sector when using blockchain tech. The bill will now go to the House for a vote. If passed, it must also pass in the Senate before returning for final congressional and presidential approval.
SEC pushes deadline to decide on Grayscale spot Ether ETF
The United States Securities and Exchange Commission has delayed its decision on whether to approve or reject a spot Ether exchange-traded fund (ETF) offering from asset manager Grayscale. In a notice, the SEC said it would designate a longer period for considering a proposed rule change that would allow NYSE Arca to list and trade shares of the Grayscale Ethereum Trust. Grayscale first filed with the SEC to convert shares of its Grayscale Ethereum Trust into a spot Ether ETF in October, adding its name to the list of companies awaiting a decision from the regulator.
Elon Musk’s xAI files with SEC for private sale of $1B in unregistered securities
Elon Musk’s X-linked artificial intelligence modeler, xAI, has an agreement for the private sale of $865.3 million in unregistered equity securities, according to a filing with the United States Securities and Exchange Commission made on Dec. 5. The company is seeking to raise $1 billion. XAI’s product, a chatbot called Grok, has recently rolled out to X’s Premium+ subscribers. Musk announced the launch of xAI in July and claimed its goal was to “understand the universe.”
Bitcoin new high set for late 2024, Binance to lose top spot — VanEck
Bitcoin will hit a new all-time high in late 2024 because of a long-feared United States recession and regulatory shifts after the next U.S. presidential election, asset manager VanEck predicts. The firm is confident that the first spot Bitcoin ETFs will be approved in the first quarter of 2024. However, it also made a gloomy prediction for the general U.S. economy. VanEck is among several firms, including BlackRock and Fidelity, that are vying for an approved spot Bitcoin ETF. VanEck also believes that the BTC halving, due in April or May, “will see minimal market disruption,” but there will be a post-halving price rise.
Winners and Losers
At the end of the week, Bitcoin (BTC) is at $44,402, Ether (ETH) at $2,364 and XRP at $0.66. The total market cap is at $1.65 trillion, according to CoinMarketCap.
Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Bonk (BONK) at 203.10%, ORDI (ORDI) at 134.34% and BitTorrent (BTT) at 114.32%.
The top three altcoin losers of the week are Maker (MKR) at -6.48%, UNUS SED LEO (LEO) at -6.22% and Kaspa (KAS) at 4.98%.
“It takes a community and the whole industry to figure out how to better educate people. That’s the hard part. It’s not a technology issue; it’s an operational problem.”
In a post on X (formerly Twitter) on Dec. 7, entrepreneur Alistair Milne noted that should current performance continue, Bitcoin will witness a crossover of two weekly moving averages (MAs), which have never delivered such a bull signal before.
The 50-week and 200-week MAs are key trendlines for Bitcoin traders and analysts alike. The latter is the ultimate bear market support level, and it has so far never decreased in value.
BTC price strength is on the way to taking the 50-week MA trendline above the 200-week counterpart. Known as a “golden cross,” on lower timeframes, this is considered a classic bullish signal, and for Milne, the impetus is that considerable upside could be in store should the phenomenon play out.
“The 50-week moving average will now soon cross back above the 200-week MA making a ‘golden cross’ for the 1st time. QED: Early bull market,” he wrote.
FUD of the Week
Crypto is for criminals? JPMorgan has been fined $39B and has its own token
JPMorgan Chase CEO Jamie Dimon is being criticized by the crypto community after claiming Bitcoin and cryptocurrency’s “only true use case” is to facilitate crime. However, according to Good Jobs First’s violation tracker, JPMorgan is the second-largest penalized bank, having paid $39.3 billion in fines across 272 violations since 2000. About $38 billion of these fines came under Dimon’s watch, who has been CEO since 2005.
British regulator adds Justin Sun-linked Poloniex to warning list after $100M hack
The United Kingdom’s Financial Conduct Authority (FCA) has added crypto exchange Poloniex to its warning list of non-authorized companies. The Seychelles-based exchange is one of the three companies owned by or affiliated with entrepreneur Justin Sun that have suffered four hacks in the last two months. The warning to Poloniex was published on the FCA’s website on Dec. 6. It doesn’t offer a reason but says that “firms and individuals cannot promote financial services in the UK without the necessary authorization or approval.”
US senators target crypto in bill enforcing sanctions on terrorist groups
A bipartisan group of lawmakers in the United States Senate introduced legislation aimed at countering cryptocurrency’s role in financing terrorism, explicitly citing the Oct. 7 attack by Hamas on Israel. The bill would expand U.S. sanctions to include parties funding terrorist organizations with cryptocurrency or fiat. According to Senator Mitt Romney, the legislation would allow the U.S. Treasury Department to go after “emerging threats involving digital assets.”
Lawmakers’ fear and doubt drives proposed crypto regulations in US
If the Digital Asset Anti-Money Laundering Act were to become law, many cryptocurrency providers would have to learn how to comply with the same regulations as traditional financial institutions.
Expect ‘records broken’ by Bitcoin ETF: Brett Harrison (ex-FTX US), X Hall of Flame
Investment management firm VanEck has unveiled its 2024 predictions, forecasting not only record-breaking highs for Bitcoin but also an anticipated peak in the NFT market, signaling a significant transformation in the industry.
The introduction of spot Bitcoin ETFs is expected to align with the prolonged anticipation of a U.S. recession, while the forthcoming halving event may not generate as much impact as previously anticipated.
New Peak for Bitcoin But No Flippening for Ethereum in 2024
Bitcoin may hit an all-time high in Q4 of 2024, according to VanEck’s prediction. With increased optimism for the dismantling of the SEC’s adversarial regulatory stance, Bitcoin could reach a new high on November 9th, exactly three years from its last peak in November 2021.
Ether is not expected to surpass Bitcoin in performance until post-halving and may outperform for the year, a complete, however, “flippening” is not anticipated. Despite posting a strong performance in 2024, Ether is projected to experience a decrease in market share as other smart contract platforms, like Solana, gain traction due to a clearer and less uncertain scalability roadmap.
Meanwhile, the introduction of the first-ever spot Bitcoin exchange-traded funds (ETFs) could potentially coincide with the US recession.
VanEck also said the 4th Bitcoin halving slated for April 2024 will occur with minimal drama. As the issuance of new coins is halved, unprofitable miners are likely to disengage, allowing those with cost-efficient power sources to gain a larger market share.
Despite this, the public markets are expected to experience minimal distress owing to the improved financial positions of listed miners, currently controlling approximately 25% of the global hash rate. Post-halving, it is expected that at least one publicly traded miner will experience a tenfold increase by the end of the year.
Turning Points for Binance and DEXes
Following Binance’s $4 billion settlement with US regulators, it is anticipated to relinquish its position as the top centralized exchange by volumes. Competitors such as OKX, Bybit, Coinbase, and Bitget, backed by substantial funding, are poised to contend for the leading spot.
As Binance undergoes a rigorous three-year DOJ examination, VanEck predicted that Coinbase’s international futures market would thrive, surpassing a daily volume of $1 billion, a significant increase from approximately $200 million per day in November 2023.
The market share of spot cryptocurrency trading on Decentralized Exchanges (DEX) is expected to reach unprecedented levels, driven by the enhanced on-chain trading experience facilitated by high-throughput chains like Solana.
Simultaneously, the adoption of significantly improved wallets, which integrate “account abstraction” as a crucial feature enabling automated payments, will contribute to more users engaging in on-chain transactions and embracing self-custody solutions.
SPECIAL OFFER (Sponsored)
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
On-chain data has revealed an increasing sentiment of holding Bitcoin among investors. Bitcoin has been on a roll since the start of the month, pushing its price to new yearly highs. At the same time, exchange data from CryptoQuant reveals that the crypto might be gearing up for a sustained bull run. According to the on-chain analytics platform, Bitcoin’s exchange supply, the amount available for purchase on exchanges, has dropped to its lowest levels since 2017
Exchange Supply Drops To Lowest Level In Six Years
The Bitcoin market is flashing a bull signal that correlates with anticipation of spot Bitcoin ETF applications. CryptoQuant’s exchange reserve chart demonstrates that the supply of Bitcoin has been steadily decreasing from centralized exchanges since 2020 when it reached a high of over 3.2 million BTC. The outflow was particularly aggravated in the last quarter of 2022, when the collapse of crypto exchange FTX led to panic and investors started to opt for self-custody in cold wallets. During this period, exchange reserves dropped from 2.512 million BTC to 2.158 million BTC in a month.
Reserve on exchanges started to increase slowly in the early months of 2023, climbing back up to 2.240 million in May. However, things started to change in June, as filings by BlackRock and other investment companies for spot Bitcoin ETF trading in the US led to the start of a bullish sentiment.
Bitcoin slightly below the $44K level today. Chart: TradingView.com
The reserve on centralized exchanges has been on a steady drop since then. At the time of writing, the exchange reserve has now crossed below 2 million BTC, a level it has yet to reach since December 2017. This metric’s six-year low is particularly interesting, considering Bitcoin’s total circulating supply has increased since 2017. Bitcoin’s total supply now stands at 19,564,812 BTC, a 16% increase from December 2017’s supply of 16.78 million BTC.
Outlook For Bitcoin Price: Bull Signal?
Although there are technically more bitcoins now available to go around, the increase in adoption is making it increasingly harder for traders to get a hold of the asset. Dropping exchange supply is a bullish signal for crypto assets and periods of low exchange supply have historically been associated with the beginning of significant Bitcoin bull runs. The last time Bitcoin had a drastic drop in exchange reserve was in 2020, and the crypto would later go on to reach its all-time high the year after.
Bitcoin experienced a notable price uptick in the past few weeks, surpassing the $40,000 mark and reaching its highest point since April 2022. This upward momentum was fueled by an increasing demand from US investors, evidenced by a positive Coinbase premium.
Experts suggest that the next target level for the leading crypto is above $50,000.
Bitcoin Targets $50K to $53K
According to the latest report from CryptoQuant, network activity indicates a potential price target ranging from $50,000 to $53,000, considering Bitcoin’s current value of $43,000. Looking at the long-term perspective, the crypto intelligence platform’s Bitcoin Bull-Bear Market Cycle Indicator signals a bullish market.
Additionally, the optimistic outlook is reinforced by the absence of liquidity from retail traders and a record high in the amount of BTC held for over a year. This suggests a positive trajectory for Bitcoin’s price action in the foreseeable future.
CryptoQuant’s latest analysis indicates that Bitcoin could be aiming for the $50,000 to $53,000 range, as per the valuation perspective derived from network activity.
These thresholds represent the red Metcalfe Price Valuation Band, which evaluates the price of Bitcoin about user activity, specifically active addresses. This band also acted as a resistance level for Bitcoin in April and November of 2021, as well as in April 2022.
A short-term correction remains a possibility, given the elevated funding rates and the fact that 86% of the circulating supply is currently profitable. It’s worth noting that historically, such levels have often aligned with local tops.
Although the short-term outlook advises traders to be cautious in the present circumstances, examining the long-term perspective reveals a bullish signal from the Bitcoin Bull-Bear Market Cycle Indicator.
It’s essential to note that the indicator is nearing the Overheated Bull phase (red area), historically associated with either a temporary halt in the price rally or a correction.
The report further revealed that the crypto market is far from reaching the top of this bull run, considering the fact that whales are not expected to capitalize on profits because there is insufficient exit liquidity from retail traders.
“In general, the lack of liquidity from retail traders, coupled with the fresh all-time high in Bitcoins that haven’t moved for 1+ year, results in an optimistic long-term outlook for Bitcoin’s price action.”
SPECIAL OFFER (Sponsored)
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
Despite Bitcoin (BTC)’s stellar performance this year, its role in an average investor’s portfolio is still questionable, according to Bloomberg.
In an opinion piece published for the outlet on Friday, financial analyst and crypto advisory expert Aaron Brown said the asset’s dubious correlations to traditional asset classes leave it out of place when bought alongside stocks, currencies, or gold.
Is Bitcoin’s Volatility A Good Thing?
BTC is up 160% since the start of the year, rebounding from losses suffered last year alongside virtually all other assets during historically aggressive interest rate hikes by the Federal Reserve.
According to Brown, that’s mostly standard behavior for BTC, which has taken an average of nine months and twenty-one days to double in value since 2014. Its volatility since March, however, has been uncharacteristically low, even amid plentiful industry scandals, hacks, and aggressive regulatory pressure.
“Bitcoin has more than enough appreciation potential to attract investors, and its volatility no longer seems to be a disqualification,” Brown noted. Nevertheless, its unpredictable behavior around fundamental market events makes it a scary prospect for those who can’t or won’t respond to regular price changes.
Average investors’ present skepticism is reinforced by on-chain data. According to Glassnode analyst James Check earlier this week, there is very little market “mania” among investors at $44,000 this year compared to almost three years ago.
On Thursday, Bloomberg blockchain analyst Jamie Coutts said that Bitcoin’s illiquid supply levels suggest a “much higher base level of conviction” among investors.
Bitcoin’s Value Proposition
Even in terms of fundamental value, the analyst finds Bitcoin’s place is questionable: its failed to gain adoption as a transactional currency compared to fiat or stablecoins, and there is inconsistent demand for tools in the crypto economy to which BTC offers access.
That said, Bitcoin is making progress on the regulatory front, with traditional and regulated financial services like options, lending, and custody now available for the asset. Issues around tax treatment and legality appear mostly solved, and approval of a Bitcoin spot ETF seems all but certain by next month.
In conclusion, Brown stated:
“We are close to the time when even very traditional investors, generally skeptical about crypto, should accept that it’s safer to have a small allocation to Bitcoin than to ignore it. Crypto might still all go to zero, but there’s enough potential upside that no exposure is an unbalanced portfolio.”
SPECIAL OFFER (Sponsored)
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
Lookonchain, a web3 data analysis tool that tracks whale activity, shared a post on X that one fund or institution had secured $60 million in USDT from the Tether Treasury.
This brings the total to $1.76 billion USDT received from Tether Treasury and subsequently funneled into exchanges since Oct. 20.
As part of the post, Lookonchain puts these numbers into perspective, highlighting the sum is enough to acquire 44,000 Bitcoin (BTC) at an average price of $40,000.
On Nov. 22, Lookonchain also reported significant Tether treasury transactions, revealing that Tether Treasury had recently minted an additional $1 billion. The tweet emphasized a noteworthy development, cautioning followers that this particular entity had accumulated a staggering 1.13 billion USDT from the Tether Treasury within the preceding 32 days.
These transactions continue to be flagged by web analysis tools due to the previous controversies the world’s largest stablecoin encountered, drawing scrutiny from critics who raise concerns about its transparency and financial stability.
Some developments, such as a legal settlement with the New York Attorney General (NYAG), have heightened suspicions, revealing instances where Tether was not fully backed at certain points in time.
Further intensifying the scrutiny, a Wall Street Journal investigation has shed light on allegations that Tether’s partners utilized counterfeit documentation to secure access to bank accounts, adding to the project’s challenges.
While the recent Bitcoin and crypto momentum is cooling off, Ethereum (ETH) rejects lower lows, especially against Bitcoin (BTC). Taking to X on December 8, decentralized finance (DeFi) researcher DefiIgnas shared insights that suggest ETH could be on the verge of a rally that would potentially see the second most valuable coin usurp BTC’s current position as the best-performing asset.
Reasons That Might Drive Ethereum Bulls
The researcher observed that ETH is down 24% versus BTC in 2023. However, multiple fundamental indicators show that this is about to change. First, DefiIgnas noted that crypto investors are increasingly drawn to discounted Grayscale Ethereum Trust (GETH), which has been rallying over the past few months, outperforming Ethereum spot prices.
GETH surged by 298% in the past few months, while ETH only rose by around 100% in the same period. As GETH share prices increased, its discount with spot ETH decreased. This means more capital indirectly flowed into ETH, leading to higher demand.
Money flowing into GETH | Source: @DefiIgnas on X
Besides GETH rising, the researcher remains bullish on Ethereum because of the recent developments surrounding the approval of the first spot Bitcoin ETF. The crypto community expects the Securities and Exchange Commission (SEC) to authorize multiple products, including those proposed by Fidelity and BlackRock.
In DefiIgnas’ assessment, once the spot Bitcoin ETF goes live, likely in early 2024, all “attention, narrative, and speculation” will shift toward the agency approving the first spot Ethereum ETF. BlackRock, the world’s largest asset manager, has already applied with the SEC to issue the first spot Ethereum ETF.
The expected activation of the Cancun upgrade in H1 2024 will also likely support Ethereum prices. Over the years, Ethereum has integrated multiple upgrades. This includes shifting to proof-of-stake (PoS) from proof-of-work (PoW) and overhauling their fee auction mechanism, introducing ETH burning.
However, with Cancun, the goal is to directly enhance the main net’s capabilities by activating several proposals, including EIP-4844 proto-dank sharding, which aims to reduce gas fees associated with rollups. This update will further cement Ethereum’s quest to significantly increase on-chain scalability and reduce gas fees over the years.
ETH Looks Firm, Resistance At November Highs
At spot rates, ETH is firm versus BTC, looking at the candlestick arrangement in the daily chart. How prices react in the days ahead remains to be seen.
Even so, if there is confirmation of the December 7 gains, ETH might extend gains. In that case, it can break above the current consolidation as bulls aim to break above November 2023 highs of around 0.058 BTC.
Jack Dorsey’s Block has announced the full, global rollout of Bitkey – the firm’s self-custodial Bitcoin (BTC) wallet – in a bid to encourage HODLers to take full control of their coins.
“Move your Bitcoin off the exchanges,” said Dorsey via X (formerly Twitter) on Thursday, attaching a link to Bitkey’s website which is currently selling the wallets for $150 apiece.
Bitkey’s Unique Security Model
Per a press release from Block on Thursday, Bitkey’s rollout is available to ninety-five countries across six continents including the United States, Canada, Argentina, Brazil, Chile, El Salvador, and others.
The wallet’s product suite includes a mobile app for users to manage their funds, and a biometrically secured hardware device for storing a private key.
As a “multi-signature” wallet, moving coins from a Bitkey requires permission from two of three keyholders: the hardware device, the user’s phone, and Block itself. This security model is intended to protect users in case they lose one or both of their keys.
For example, if a user loses or replaces their phone, they can still use Bitkey’s cloud backup service to recover their mobile key. Backups stored on Bitkey’s cloud are encrypted, and can only be decrypted using a key exclusively stored in the customer’s hardware device.
Alternatively, if a customer loses their hardware wallet, they may trigger an in-built fund recovery process within their app. After a security waiting period, Bitkey will send users a new device, and will collaborate with the customer to transfer their old balance to their new keys.
Even if both a user’s hardware wallet and phone are lost, they pre-arrange “trusted contacts” to help verify their identity to Bitkey, who can help recover both their mobile and hardware keys for them.
Making Self Custody Feasible
Bitkey Business Lead Lindsey Grossman noted that the wallet was designed to make people feel more secure about self-custody of their keys, and more willing to remove their coins from centralized exchanges.
“People have often felt stuck: worried about the lack of control they might experience on a custodial platform or exchange, yet also anxious about the unforgiving product experiences that exist in other self-custody wallets historically available,” she stated.
Dorsey has endorsed numerous Bitcoin-related initiatives in the past to promote decentralization and security throughout the ecosystem. Last month, he led a $6 million raise for the non-custodial Bitcoin mining pool OCEAN.
SPECIAL OFFER (Sponsored)
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
The cost of buying Bitcoin (BTC) is pushing record highs this week – and in a sense, so is the cost of moving it.
On-chain data shows that the price for Bitcoin block space has touched a new all-time high in BTC terms – largely due to massive demand created by Ordinals transactions.
Record Demand For Bitcoin Blockspace
Bitcoin for Fairness founder Anita Posch highlighted the record cost on X, showing that transactions reached a cost over 350 satoshis per vByte (sat/vB) on Thursday.
A vByte is a measure of block weight and transactions, with one vByte equal to four weight units. Each Bitcoin block can store 4 million weight units of witness data in total, with the standard SegWit-based transaction weighing just 1 weight unit.
Mempool data shows that the weight of Bitcoin’s mempool (where still unconfirmed transactions are stored) reached a new high of 390 vMegabytes (vMB) on Tuesday. That’s a sign of major blockchain congestion, meaning slower BTC settlement times and more costly transactions – which destroys the feasibility of smaller on-chain payments.
Bitcoin Mempool Weight in vB. Source: mempool.jhoenicke.de
“I stop onboarding users to on-chain in Ghana, South Africa, etc. at these fees,” Posch wrote to X, noting that transactions at such costs are equal to “10% of the average income in many countries.”
Bitcoin’s fees have exploded at several points this year during times of surging Ordinals activity – a protocol for issuing NFT and tokens on the Bitcoin blockchain. Unlike other blockchains, Bitcoin NFTs store the image data for its tokens directly on-chain, making for sizable and costly transactions.
Benefits To Bitcoin Miners
According to Dune Analytics, Ordinals fees paid by users tallied $1.9 million on Tuesday, and another $854,000 on Wednesday. In total, related transactions have accrued $148.4 million in fees to date.
Some Bitcoiners including Bitcoin Core developer Luke Dashjr believe Ordinals transactions constitute a form of network spam. His newly launched Bitcoin mining pool, OCEAN, has opted to filter Ordinals transactions to let miners “contribute toward blocks full of real transactions.”
Ethereum gas fees have also nearly doubled since last month following the introduction of Buterin Cards NFTs, touching their highest level since May of this year.
Ordinals allowed Bitcoin transaction fees to rival those of Ethereum last month, pulling in ~$52.6 million in fees between November 18 and November 25, versus Ethereum’s $61.5 million.
According to HashRate Index, between 25% and 30% of rewards to Bitcoin mining pools have come from transaction fees alone over the three days, as opposed to miners’ standard 6.25 BTC block subsidy. The upcoming Bitcoin “halving” in April will cut that subsidy in half.
SPECIAL OFFER (Sponsored)
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
A crypto pundit and Bitcoin maximalist, Mark Harvey, has explained why he believes the foremost cryptocurrency Bitcoin, is far off from its true potential. According to him, the crypto token could be worth close to $17 million in the future.
Why One Bitcoin Could Worth $17 Million
In a post shared on his X (formerly Twitter) platform, Harvey made a strong case for Bitcoin on why it could on why a price even greater than $17 million is likely. He referred to Bitcoin’s use case as a store of value and how it could further chop into the market share of other asset classes. He noted Bitcoin’s “tremendous upside” despite being a relative newcomer.
Bitcoin is said to have 0.1% of the $871 trillion which are invested in global assets. Other global assets that hold a substantial market share include gold and silver, bonds, equities, real estate, and fiat money. Harvey believes that Bitcoin’s price could rally significantly as the foremost cryptocurrency becomes the most preferred option for people to preserve their money.
Source: X
Harvey stated that the monetary premium of those global assets highlights how much they are used as a store of value. The crypto pundit asserts that Bitcoin has the potential to capture the monetary premiums of other asset classes, which would see its price rise to $17 million with a market cap of $356.7 trillion.
Source: X
In his opinion, this is very likely because Bitcoin is a “superior form of property.” If it does happen, the crypto token could also end up capturing 41% of the $871 trillion in global assets. Harvey also provided a more probable scenario as to Bitcoin’s future price. He noted that the crypto token could still rise to as high as $415,000 per token if it captures 1% of global assets.
Source: X
Is BTC Superior To Other Asset Classes?
Harvey labeled Bitcoin as a “superior form of property,” and there is evidence to back up this assertion. As highlighted by the Director of Global Macro at Fidelity Investments, Jurrien Timmer, Bitcoin stands out in comparison to other asset classes.
Source: Fidelity Investments
According to data from Fidelity, the flagship cryptocurrency provided the best risk-reward with a 58% return from 2020 to this year. In terms of drawdowns and rallies, Bitcoin also stood out with an 84% gain from its 2-year low.
Meanwhile, a recent report by Glassnode noted that Bitcoin continues to lead as one of the best-performing global assets, with a gain of over 140% year to date (YTD). Specifically, Bitcoin has more than doubled in relation to Gold.
Bitcoin has seen a pullback but not to the extent that bears have been expecting. Nevertheless, as a result of this, a lot of traders have incurred massive losses due to Bitcoin staging another unexpected recovery. The loss volumes have quickly risen to $190 million in one day as uncertainty remains the order of the day.
Crypto Liquidations Reach $190 Million
According to data from Coinglass, the 24-hour crypto liquidation volumes quickly rose above $190 million as Bitcoin completed a shakeout. This began with the price pullback to the $43,600 territory. And then a rapid rise back toward $44,000 completed the move.
Following this, traders on both sides quickly found themselves holding loss positions, and the liquidations pilled up. In total, over 81,000 traders were caught in the red, leading to more than $190 million in losses. Interestingly, the majority of these were from long trades who were betting on the price to continue to rise.
Source: Coinglass
Coinglass puts 73.74% of the total liquidations in the past day to be from long traders, meaning that around 45,000 traders were long this time around. The single largest liquidation event was recorded on the OKX crypto exchange across the ETH-USDT-SWAP pair which was valued at $2.12 million at the time of the liquidation.
There was also a new entrant into the top 3 in terms of liquidation volumes. Naturally, Bitcoin and Ethereum led the pack with liquidation volumes of $47.12 million and $29.16 million. However, ORDI came in third position with $21.64 million in liquidations in 24 hours.
Long Traders In Trouble As Bitcoin Tanks
Long traders have continued to suffer the brunt of the liquidations in the last day, and the tides are still yet to turn against the bears. As Bitcoin’s price has briefly plunged below $43,000 and recovered back up toward $43,400 once more, the long liquidations are still piling up.
At the time of this writing, short liquidations made up 91.05% of the approximately $47.83 million in liquidations that have been recorded in the last four hours. This 4-hour liquidation trend is also being led by the same top three including Bitcoin, Ethereum, and ORDI, all of which have seen a lot of volatility in the last week. If Bitcoin’s recovery continues to show high volatility, these liquidation volumes will continue to rise.
The majority of the liquidations have taken place on both the Binance and OKX exchanges with $82.56 million and $60.51 million, respectively. ByBit exchange snags third position with $27.05 million in liquidations in the last day.
Bitcoin is currently struggling to maintain support above $43,000, which explains why there has been an uptick in the liquidation trend in the last few hours. However, bulls are still ahead and continue to dominate as sentiment remains firmly in greed.
Bitcoin (BTC): Surpassed $44,000, contributing to a global crypto market cap of over $1.65 trillion, with signs of continued bullishness.
Solana (SOL): Experienced price volatility, currently hovering around $64, with potential for an upcoming rally based on positive on-chain metrics.
Ripple (XRP): Trading around $0.64, up 88% since January, with analysts predicting a significant rally, potentially reaching $25 in the future.
BTC’s Push Toward $44K
The cryptocurrency sector has experienced a serious revival throughout 2023, with the past few days being particularly bullish. The global crypto market capitalization has surged above $1.65 trillion, whereas Bitcoin (BTC) has been among the best-performing assets.
The primary cryptocurrency crossed the $40K level on December 4, but the uptrend did not stop there. In the following days, BTC pushed above $44,000 (per CoinGecko’s data), a peak unseen since early spring 2022.
There are numerous factors indicating that the asset’s ascent might continue in the near future. According to data presented by CryptoQuant, BTC exchange outflows have significantly surpassed inflows in the past few days. Investors’ shift toward self-custody methods is usually considered bullish as it eliminates immediate selling pressure.
Some experts argued that the current market dynamics are far more favorable than the ones during the bull run in 2021 and could trigger a further rally for Bitcoin. The X (Twitter) user Checkmate noted that the $44,000 price tag marked the “absolute zenith of on-chain mania” back in January 2021.
“Here we are at $44k and barely a squeak. Not even at 2019 levels. HODLers are not relinquishing their coins. They demand higher prices,” the analyst added.
Those willing to dive deeper into the topic and find out why BTC might be ready for an imminent bull run could take a look at our latest video below:
Is Solana (SOL) Looking for a Breakout?
Another digital asset that has captured the attention of investors lately is Solana’s native token – SOL. It was a top performer in the past few months, with its price soaring to almost $70 in mid-November.
However, SOL could not keep the momentum, dropping to as low as $54 by the end of last month. Since then, the asset has experienced enhanced volatility, and its valuation has hovered between $55 and $65.
Nonetheless, some important on-chain metrics hint that the coin could be on the verge of a new rally. As observed on DefiLlama, total value locked (TVL) on Solana has been on the rise recently. The figure stopped at almost $700 million today (December 7), a peak last reached in November 2022.
In addition, popular analysts like Crypto King and Jacob Canfield have forecasted a bright future for SOL. The former envisioned a price spike to $300 in the long run, whereas the latter thinks the valuation could explode to a whopping $1,000.
How is Ripple (XRP) Doing?
Ripple’s native token – XRP – has also recorded some gains lately, albeit not as substantial as Bitcoin and other assets. It currently trades around $0.64, an 88% increase since January 1.
According to multiple analysts, XRP is on the verge of attacking a new all-time high price. Fiery Trading believes the coin has formed a “bull-flag” and is ready to explode to $25 by the end of next year:
“This huge pattern will explode at some point in 2024, with the most likely move being a bullish one with the halving in mind. My target for the break out is placed at $25.”
The analyst behind the popular YouTube channel CryptoTV also thinks XRP is poised for a rally, outlining $0.83 as a short-term target.
Those curious to check how the asset might perform in the remaining weeks of the ongoing year could take a look at our dedicated video below:
SPECIAL OFFER (Sponsored)
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
In a fiery declaration that reverberated through the financial landscape, JPMorgan Chase’s formidable CEO, Jamie Dimon, once again launched a verbal assault on crypto.
Dimon, well-known for speaking his mind, straightforwardly called for a complete ban on digital currencies, linking them to criminal activities without holding back.
The CEO didn’t mince words at a Senate hearing alongside seven other big bank bosses:
“If I was the government, I’d close it down.”
In response to a question from Senator Elizabeth Warren, he stated that he was adamantly against all forms of crypto, including bitcoin.
Even though Dimon’s bank is deeply engaged in blockchain—the technology that powers the $1.6 trillion cryptocurrency industry—his comments are the most recent assault against the industry.
Dimon Bashes Crypto
In earlier remarks, Dimon referred to bitcoin as “a hyped-up scam,” a term he subsequently withdrew. In addition, he had compared it to a “pet rock.”
In spite of his subsequent admissions of remorse, he continued to use the term “decentralized Ponzi scheme” to describe bitcoin and other digital currencies following his previous tirades.
Dimon and other banking leaders, including Brian Moynihan of Bank of America Corp., have asserted that their institutions have measures to stop terrorists and other criminals from utilizing them.
In contrast, Warren advocated for the extension of anti-money-laundering regulations that banks presently enforce to digital assets, specifically the cryptocurrency market. Every single CEO expressed agreement.
As of today, the market cap of cryptocurrencies stood at $1.55 trillion. Chart: TradingView.com
According to sources, JPMorgan completed its first blockchain-based collateral resolution as recently as October in a deal with BlackRock and Barclays.
With its JPM Coin, a proprietary stablecoin that enables users to execute blockchain-based payments, JPMorgan was a pioneer in this space.
JPMorgan said in the next two years, the token may handle up to $10 billion in daily transactions, up from its current level of about $1 billion.
The price of bitcoin, the biggest cryptocurrency in the world in terms of market valuation, has increased by more than 150% this year to about $44,000-plus, according to market tracker CoinMarketCap, despite calls for a government clampdown.
Cryptocurrency Critique Unites Senator With Bankers
Warren took advantage of the session to criticize the cryptocurrency sector by collaborating with Republicans and prominent bankers.
Naturally, Dimon does not have the power of a government and cannot independently initiate the ban of cryptocurrencies.
Being the leader of a private financial company, he may only make suggestions and voice opinions; he cannot implement significant policy changes.
Nevertheless, it demonstrated an unusual convergence of interests between the crypto industry and the senator from Massachusetts, a long-time enemy of banks, who claimed that cryptocurrency was supporting illegal transactions.
The price of bitcoin, the biggest and most popular cryptocurrency in the world, has increased by more than 150% this year and crossed the $44,000 barrier on Wednesday, according to the most recent market data, despite calls for a government shut down.
Featured image from Ting Shen/Bloomberg via Getty Images
Bitcoin has gained recognition in the financial sector within two decades after its launch. This is evident in the increasing number of times the leading digital asset has been mentioned in official filings over the past years.
According to recent research, the world’s largest cryptocurrency was mentioned in more than a thousand filings with the United States Securities and Exchange Commission (SEC) in November, recording a new high and indicating rising adoption of the asset.
Bitcoin Mentioned in 1,074 Filings in November
The research found that 1,074 filings mentioned “bitcoin” in November. The figure was a 100% increase from the 527 filings mentioning the crypto asset in October. The new high also represented a 32.6% rise from the previous peak of 810 set in May and a 35.1% from November 2022.
One of the analysts noted that filings in November soared because crypto-related companies were required to report quarterly earnings in their 10-Qs and 8-Ks; hence, comparing last month with October was not fair.
However, the higher frequency of bitcoin-related filings shows more adoption and recognition of crypto and indicates that many firms are interested in the exchange-traded fund (ETF) hype. Roughly 40 filings came from the Grayscale Bitcoin Trust and were mostly free-writing prospectuses written by the asset manager’s executives ahead of the expected GBTC conversion.
The Anticipated Spot Bitcoin ETF Approval
Bitcoin showing up in more regulatory filings reflects excitement in the broader crypto market over the SEC’s anticipated approval of the first spot Bitcoin ETF. Over the past few months, around 13 traditional finance giants, including BlackRock, Fidelity, Ark Invest, Franklin Templeton, WisdomTree, and Valkyrie, have applied for spot Bitcoin ETFs with the SEC.
While the agency is expected to make its first spot Bitcoin ETF approval by the first week of January 2024, BTC has been on an ETF-driven rally over the past few days.
The leading crypto asset soared past the $44,000 mark on December 5, less than 48 hours after hitting $41,000. However, the cryptocurrency had fallen a few steps back and was trading around $43,900 at the time of writing, per data from CoinMarketCap.
SPECIAL OFFER (Sponsored)
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
Cathie Wood believes the SEC’s decision on spot Bitcoin ETFs may significantly impact institutional crypto adoption.
Wood views this imminent approval as a pivotal moment, suggesting that such approval could be the “final seal of approval” for institutions considering crypto investments. In collaboration with 21Shares, ARK Invest awaits a decision on their ARK 21Shares Bitcoin ETF (ARKB) proposal, with a ruling expected by Jan. 10.
The SEC’s previous approval of Bitcoin futures ETFs in October 2021 was seen as a cautious yet progressive step despite concerns about counterparty risks compared to spot products backed by Bitcoin in cold storage. Most Bitcoin ETF proposals name Coinbase as the custodian, which adds a layer of security and legitimacy.
A court victory in July by Grayscale Investments against the SEC further underscores the tension and evolving landscape. The court criticized the SEC’s decision to deny Grayscale’s Bitcoin ETF conversion while allowing futures-based funds, labeling it “arbitrary and capricious.”
What does this mean? Without having read them — it just means that the wheel is still turning. Both the SEC and these issuers are working hard to iron things out. These filings are likely the result of many conversations and a lot of man hours on/between both sides.
Wood’s optimistic forecast for Bitcoin’s value (BTC), predicting it could exceed $1 million in the long term, is matched by Bloomberg Intelligence analysts’ high confidence in approving a spot Bitcoin ETF by Jan. 10. This optimism is a departure from the SEC’s historical reluctance to support spot Bitcoin ETFs.
21Shares President Ophelia Snyder noted recent pattern breaks in the approval process, indicating a potential shift in the SEC’s stance. Recent updates in Bitcoin ETF filings, such as BlackRock’s inclusion of seed capital language and technical amendments addressing concerns like Bitcoin mining’s electricity usage, suggest an active dialogue with the SEC.
The entrance of major firms like BlackRock into the Bitcoin ETF space has reinvigorated efforts by other financial giants like Fidelity and Invesco. Wood anticipates that multiple firms, including ARK Invest, could receive approval simultaneously, depending on their filing specifics.
Here’s what the data of this historical on-chain indicator suggests regarding whether Bitcoin has become overvalued after its latest uptrend.
Bitcoin MVRV Z-Score Hasn’t Climbed Too High Yet
As the Reflexivity Research co-founder pointed out in a post on X, the BTC MVRV Z-Score readings have heated up little compared to the values observed in past bull runs.
The “Market Value to Realized Value (MVRV) ratio” is an indicator that measures the ratio between the Bitcoin market cap and the realized cap. The “realized cap” refers to a capitalization model for the cryptocurrency that assumes the “true” value of any coin in circulation is the price at which it was last transacted on the blockchain.
Since the last transaction price of any coin was likely the price at which it changed hands, one way to interpret the realized cap is that it represents the total capital the holders have invested into the asset.
Since the MVRV ratio compares the market cap (the spot price) against this model, it can tell us whether the investors are holding more value than they put in right now.
If the investors are holding more than what they bought the coin for (that is, they are in net profits), they might be tempted to sell, and thus, BTC might be likely to see a correction. Similarly, the market being in losses can suggest the cryptocurrency’s price is currently undervalued and might be due to a rebound.
Now, here is a chart that shows the trend in the Z-Score of the Bitcoin MVRV ratio over the history of the coin:
The value of the metric appears to have been going up in recent days | Source: @WClementeIII on X
The “Z-Score” is a statistical tool used to measure how far a data point is from the mean. In the graph, the analyst has marked two zones for the Bitcoin MVRV Z-Score where BTC has attained an overbought/underbought condition.
It would appear that historical bottoms in the asset’s price have formed when the metric has dipped inside the green zone. The tops haven’t been so simple, though, as they fluctuate a bit.
One common thing between all tops is that they have occurred at decently high values of the indicator. At such values, the investors make very high profits, so tops naturally become significantly probable.
The chart shows that the Bitcoin MVRV Z-Score has been climbing recently as the asset has rallied, but it’s yet to arrive at levels similar to past tops. “There will be corrections along the way, but zooming out Bitcoin is far from overvalued based on historical readings,” notes the analyst.
BTC Price
At the time of writing, Bitcoin is trading at around $43,800, up 15% in the last week.
Looks like BTC has registered a sharp uptrend over the last few days | Source: BTCUSD on TradingView
Featured image from iStock.com, charts from TradingView.com, Glassnode.com
JPMorgan Chase CEO and Chairman Jamie Dimon gestures as he speaks during the U.S. Senate Banking, Housing and Urban Affairs Committee oversight hearing on Wall Street firms, on Capitol Hill in Washington, U.S., December 6, 2023.
Evelyn Hockstein | Reuters
JPMorgan Chase CEO Jamie Dimon lashed out at bitcoin and its peers, suggesting in remarks Wednesday on Capitol Hill that cryptocurrencies should be banned.
“I’ve always been deeply opposed to crypto, bitcoin, etc.,” the head of the largest U.S. bank by assets said under questioning from Sen. Elizabeth Warren, D-Mass., during a Senate Banking Committee hearing. “The only true use case for it is criminals, drug traffickers … money laundering, tax avoidance.”
“If I was the government, I’d close it down,” he added.
The remarks are the latest broadside from Dimon against cryptocurrencies, though his bank is heavily involved in blockchain, the enabling technology for the $1.6 trillion industry.
In previous statements, Dimon has called bitcoin “a hyped-up fraud,” a comment he later walked back. He had also likened it to a “pet rock.”
Under further questioning from Warren, Dimon and several other CEOs of large banks brought before the committee as part of a routine hearing on the industry, agreed that crypto companies should face the same anti-money-laundering regulations as the major financial institutions.
The topic marked a rare note of unity between the banking leaders and Warren, usually a harsh critic of the industry.
“When it comes to banking policy, I am not usually holding hands with the CEOs of multibillion-dollar banks, but this is a matter of national security. Terrorists, drug traffickers and rogue nations should be barred from using crypto for their dangerous activities. It is time for Congress to act,” Warren said.
It was the buzz of the marijuana world as legalization become the normal for more states. Everyone wanted to jump on the bandwagon. Cryptocurrency was offered as the answer for dispensaries who couldn’t take mainstream credits. Plus, weed aficionados could make money with “pot coins”. At the time, the industry was flooded with conferences and crypto was a topic on stage and at the wrap around events. Mainstream and marijuana media ate it up. But, cryptocurrency has not changed the cannabis industry.
The biggest example cyptocurrency isn’t solving any major cannabis industry problem is the excited around the slow-moving Biden administration moving to reschedule and the Senate embracing SAFER Banking. Both will have a significant impact on the entire industry generating jobs, investment and hope. Together they will create an atmosphere for mom and pop businesses and large operators to have a fair chance at success.
One of the most high profile boom and bust crypto moments was in 2018. High Time just on the early coin moment and announced they would accept it as a way to invest in their IPO. Days later, theyremoved bitcoin as a payment option for its the yet to happen IPO.
Photo by MichaelWuensch via Pixabay
Multiple firms wanted to exploit a perceived loophole to sell cannabis by credit card. Each company got close and then the effort failed. Posabit, now a specialized point-of-sales system for dispensaries, tried and made it work for a short period. In fact, the site updated its FAQ with a statement, saying “Why is credit card processing illegal? (…) Simple: Cannabis is categorized as a Schedule 1 controlled substance at the federal level, which makes it illegal. This hinders credit payment processors from deliberately working with cannabis businesses.”
Eaze, tried to find a workaround to be able to charge credit cards, by obfuscating the nature of the charges. Then, Smoakland tried to do the same thing but surrendered when their process partner terminated the relationship.
“Crypto has not changed the legal cannabis industry. It is not an accepted payment method at dispensaries, and I have not seen vendors using it either. However, crypto is popular for making black market purchases, as it is global and harder to trace.” stated Jesse Redmond, Head of Cannabis for Water Tower Research.
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.
SPECIAL OFFER (Sponsored)
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
Source: Fidelity Investments
