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Hi Reader,
This week saw some major news across the digital asset market, some bullish, some bearish, let's dive in.
P.S. stick around for our project spotlight at the end for what's catching our attention at the moment.
Executive Summary
- $1.7B in crypto leveraged positions liquidated in just 24 hours
- Trump's son, Eric, delivers an 'extraordinary' bitcoin speech and outlines his father's plans
- Microsoft turns down bitcoin treasury strategy, will it prove to be a strategic blunder?
Market Update
Crypto Deleveraging
Whilst bitcoin has remained relatively flat over the week, the market experienced a significant pullback on December 9th. Bitcoin wicked down from $101,109 to $94,150, (-7%) with altcoins such as Ether falling by -12%, XRP by -22%, Solana by -15%, Cardano by -23%, Dogecoin by -19%, and Shiba Inu by -25%.
According to Coinglass, more than 562,000 traders were liquidated in one 24-hour period, with liquidations reaching $1.7 billion, of which mostly were leveraged long altcoins.
Microsoft Turns Down Bitcoin Treasury Strategy
In other news, having allowed just 3 minutes for Michael Saylor to present bitcoin as a treasury strategy to the board of Microsoft, shareholders voted to not acquire bitcoin. The outcome was expected by many and would have likely triggered a price surge for both BTC and Microsoft if it was approved. The company however was not dismissive of bitcoin, in their virtual meeting, their CFO, Amy Hood, outlined that they have accepted bitcoin as a form of payment since 2014 and will continue to monitor the asset class.
The question now is whether Microsoft will look back on this decision as another strategic blunder similar to how they let Apple take the mobile phone market and become the most valuable company in the world. Or if they will pivot at a later date. Time will tell.
Trump's Son, Eric, Delivers 'Extraordinary' Bitcoin Speech
In what has to be one of the most bullish indications of how the Trump administration intends to treat bitcoin and other crypto assets, his eldest son Eric Trump took to the stage to outline exactly why he believes in bitcoin, how it will revolutionise finance and how his father intends to fulfil his promise of making America the home of crypto innovation in the years ahead. Eric outlined the benefits bitcoin can provide to America and the world in removing the middlemen in banking, providing global access to capital and a fairer financial system for all. The 25-minute video below is well worth a watch.
@saylor
Today, @EricTrump shared his views on the significance of #Bitcoin and the role that he and @realDonaldTrump expect it to play in the future. The speech is extraordinary and I highly recommend watching it in full.
4:44 AM • Dec 11, 2024
1930
Retweets
9825
Likes
MicroStrategy Poised to Enter The NASDAQ - Attracting More Funds For Bitcoin Acquisition
Over the past 12 months, MicroStrategy stock has risen in value by 478%. The stock has been the talk of Wall Street for months. Adding fuel to the fire is a recent announcement that the company will be added to the NASDAQ 100 (QQQ) later this month. James Seyffart, Bloomberg ETF analyst expects that this will result in $2.1B of capital flowing into the company from ETFs buying. Cash proceeds from inflows are used by MicroStrategy to fund additional bitcoin purchases, providing an indirect way for both bond and equity investors to gain exposure to bitcoin.
Stay up to date - get in touch with our team.
As the market continues to evolve, we'll endeavour to keep you abreast of the most important updates. If you'd like to speak to a member of our team, you can respond to this email or schedule a call using the button below.
BlockByte provides personalised trading and onboarding services to all its clients with a $42m insurance on deposits as standard.
P.S. (Project Spotlight)
Solana has underperformed the altcoin market (excluding the top 10 tokens) by ~38% over the last month due to a combination of more risk-taking and rotation into smaller tokens. Given SOL has reached new record monthly active users of 120 million we are keeping an eye on SOL as it approaches attractive price-to-value territory.
Until next week,
James
James Brannan
Chief Executive Officer
BlockByte Capital
(+61) 412 393 634
james@blockbyte.com.au
https://blockbyte.com.au/
BlockByte does not provide financial advice. We provide execution support, research and insured custody for investing in digital assets. Reach out to our team to discuss how we can help.
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