Bitcoin News Weekly #9

🔥 Potential for the Biggest Bull Market We've Ever Seen?

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TLDR:

  • MicroStrategy acquires an additional 14,620 bitcoin.

  • SEC to notify Bitcoin ETF issuers of approval as early as this Tuesday.

  • A 5% Bitcoin allocation ‘blows away’ the traditional ‘60/40’ portfolio.

  • Marathon Digital becomes the most traded stock in the world.

Hey, it's Bam and I’m excited to present you with yet another edition of Bitcoin News Weekly! Haven't subscribed yet? Click below to get the latest breaking Bitcoin News delivered weekly to your inbox!

Now that its Jan 1st, let's kickstart the year by delving into the latest weekly insights.

LATEST NEWS

🙌 Adoption:

  • MicroStrategy acquires 14,620 bitcoin for $615M at an average price of $42,110, bringing their total to 189,150 bitcoin with an average price of $31,168 / coin.

  • Mutiny Wallet introduces an initial integration of Fedimint, enabling users to choose a federated custodian for their funds.

  • “Adoption in the US to rise from 40% to 90% in the next 5 years” – Chamber of Digital Commerce CEO.

⚖️ Legal:

  • Hong Kong Securities and Futures Commission will permit spot Bitcoin ETF issuers to utilize both cash and in-kind product creation models.

  • The SEC might inform approved spot Bitcoin ETF issuers as early as Tuesday the 2nd about their clearance for a January 10th launch.

  • Fidelity's spot Bitcoin ETF will carry a 0.39% fee, vs Galaxy/Invesco who will offer a 0% fee for the first 6 months, sparking a fee competition among providers.

📈 Markets:

  • Ark liquidates its entire remaining GBTC holdings, purchasing ~$100 million worth of BITO with the proceeds, now ranking as the second-largest holder.

  • Bitwise plans to initiate its spot Bitcoin ETF with a seeding of up to $200 million.

⛏️ Mining:

  • Marathon Digital’s stock soars with $327 million in trading volume on December 27th, becoming the most traded stock - outpacing Tesla, Apple, and Amazon.

  • BitCluster is creating a 120MW Bitcoin mine in Ethiopia powered solely by renewable energy from Africa's largest hydropower project.

  • Nakamoto Heating Solutions demonstrates heating a hot tub in under 4 hours using two bitcoin miners.

🗳️ Politics:

  • Javier Milei's bill proposes tax incentives for Argentines declaring crypto assets. Pre-3/31/24 declarations face a 5% tax rate, while later declarations incur 15%.

  • Indonesian police seize 1,134 ASIC miners and arrested 26 individuals at Bitcoin mining sites accused of stealing electricity from the national grid.

  • The Indian government blocks the URLs of nine offshore Bitcoin and crypto platforms that have been operating illegally in the country.

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BAM’S 2 SATS:

As the year concludes, Bitcoin has surged by almost 160% in 2023. Reviewing Bitcoin's history, the three years succeeding bear market lows often show positive trends. While history doesn't precisely repeat, it often rhymes.

Today, I want to share fascinating predictions from Alistair Milne, a Bitcoin OG and the CIO of Altana Digital Currency Fund. He's titled these insights "The 7 stars align." He believes that 2024 and possibly 2025 could mark Bitcoin's most significant bull market yet, attributing this potential surge to seven key factors:

  1. US ETF arrival allows hedge funds, pension funds, and others to invest in Bitcoin, enabling more efficient and profitable trading on Wall Street.

  2. Bitcoin's upcoming halving in April will reduce its inflation rate, making it more challenging for ETFs and others to acquire sufficient coins to meet rising demand.

  3. USD interest rates have probably peaked, and 2024 being an election year suggests upcoming QE, which could be bullish for all risk assets.

  4. Gold, which seems to lead Bitcoin, has already started making new ATHs.

  5. If previous market cycles continue their pattern, we might be entering the early bull phase of Bitcoin's market cycle once more.

  6. HODL'ing ... 70% of Bitcoin hasn't moved in over a year, indicating strong conviction among hodlers. Significant price shifts would likely be needed to prompt these long-term holders to sell.

  7. MicroStrategy, Tether, and other undisclosed billion-dollar entities are consistently accumulating Bitcoin.

I must say, I completely agree. These factors point towards rising demand, unwavering confidence, bolstered by favorable economic conditions, and a limited supply.However, there's a common sentiment that the ETF announcement might lead to a "sell the news" scenario, possibly prompting a notable retracement in the market. Certainly, if I were BlackRock facing competition from over 10 other institutional players for market share with my ETF, it would be in my best interest to:

  • Accumulate as much Bitcoin as possible before the ETF

  • Capture the largest market share possible to profit from management fees.

  • Promote bitcoin to encourage its appreciation, resulting in even higher revenue from management fees.

In summary, all signs point to a very positive outlook for Bitcoin. It seems we're on the verge of gaining substantial attention from the general public as institutional entities prepare to promote their spot ETFs, aligning the stars for widespread visibility.

Indeed, this surge in visibility might fuel a significant rise in Bitcoin's value, driven by a competitive mindset where entities aim to stay ahead of peers or rivals in accumulating Bitcoin, ensuring they're not left behind. Essentially, we're about to see how Bitcoin's design, rooted in self-interest, paradoxically leads to collective benefits for the entire network.Happy New Year & Keep Stacking,Bam

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