Cryptocurrencies To Watch

Tag: Bitcoin News

  • Bitcoin Dip-Buying Sentiment Hits 8-Month High as Price Drops to $93K

    Bitcoin Dip-Buying Sentiment Hits 8-Month High as Price Drops to $93K

    Bitcoin’s (BTC) price has plunged sharply, hitting over $93,000 in a sudden and dramatic decline. The dip has also fueled a surge in investor optimism. The crypto asset’s pullback marks its third consecutive day of losses as macroeconomic influences and profit-taking weigh on the market.

    The Crypto Market Bleeds Red

    The asset’s downturn intensified on December 19, 2024, after Federal Reserve officials indicated a more gradual approach to lowering interest rates in 2025.

    At the time of writing, BTC was changing hands at $94,076, reflecting an 8.12% decline over the past 24 hours. The asset has been trading steadily around the $100,000 price mark since it surpassed the mark for several weeks and experienced a sudden correction.

    Despite the bearish movement, the dip was met with an overwhelming response from retail and institutional investors, as bitcoin lovers spent heavily on purchasing the asset. For instance, Florida-based Bitcoin mining firm Hut 8 announced its purchase of 990 bitcoins for $100 million. The investment was executed at an average price of $101,710, bringing its total Bitcoin reserve to 10,096 BTC, currently valued at over $1 billion.

    The company claimed the latest purchase is part of its broader capital strategy to optimize its balance sheet performance and funding growth initiatives.

    “Buying the Deep” Sentiment Hits 8-Months High

    As bitcoin’s price dropped below $95,000, social media conversations about “buying the dip” rose significantly. Data from market intelligence provider Santiment revealed that mentions of the phrase hit an eight-month high.

    Interestingly, this pattern mirrors past phases of increased investor optimism, such as the notable sell-off in August. Since then, bitcoin’s capitalization has steadily recovered by 81%.

    A 3.30% Increase

    According to blockchain analytics firm IntoTheBlock, BTC ownership trends have significantly changed. Over the past week, holdings by large investors grew by 3.30%, indicating increased accumulation during the price dip. 

    The 30-day metric, however, showed a 95.02% drop, likely due to profit-taking during BTC’s recent peak. Despite these short-term shifts, a 136.17% increase in 90-day ownership highlighted strong buying interest over the longer horizon. 

    Also, outflows from aggregated exchanges have risen alongside growing holdings, indicating that investors are increasingly moving BTC to private wallets. These spikes in outflow volumes have consistently coincided with recent price declines.

  • It’s Never Late to Buy Bitcoin, Says Robert Kiyosaki As Market Bleeds

    It’s Never Late to Buy Bitcoin, Says Robert Kiyosaki As Market Bleeds

    Despite the recent downturn in the crypto market, businessman and author Robert Kiyosaki has reaffirmed his optimistic outlook on Bitcoin. In a recent tweet, Kiyosaki said it’s never “too late to buy Bitcoin.” He further expressed his confidence in the digital asset’s long-term potential.

    Kiyosaki Expresses Bitcoin Optimism

    Kiyosaki’s comment comes as the crypto market is experiencing significant volatility. Many investors are selling off their holdings in response to economic uncertainty. However, Kiyosaki remains undeterred, advising his followers to leverage the current market dip by investing in Bitcoin.

    The famous author of “Rich Dad Poor Dad” has long advocated investing in assets not tied to traditional fiat currencies. He has consistently cited the benefits of investing in gold, silver, and Bitcoin, citing their potential to hedge against inflation and economic uncertainty.

    Other market metrics support Kiyosaki’s perspective. According to Santiment’s analysis, now may be a strategic time to invest in Bitcoin. The 30-day Market Value to Realized Value (MVRV) ratio has dropped to its lowest level since October 10, indicating a market correction.

    With the average returns for actively trading wallets declining, many traders are experiencing losses, which could signal a buying opportunity for investors. However, While this analysis suggests a potential buying zone, it does not confirm that Bitcoin has reached a local bottom, making it a good time for investors to utilize a dollar-cost averaging (DCA) strategy.

    Why Crypto Market Is Bleeding

    According to CryptoQuant data, the combination of bearish sentiment among United States traders, low buying pressure, and a lack of inflows into crypto has created a storm driving the market’s bleed since the Federal Reserve’s recent 25 basis-point rate cut.

    Some experts believe the rate cut’s limited scope may indicate the Fed’s caution about the economy’s health. The announcement of potential inflation next year further reinforces this notion, suggesting that the Fed is not yet confident enough to implement a more aggressive monetary policy.

    The upcoming holiday season is another contributing factor to the ongoing decline in the crypto market. Historically, December has consistently seen significant decreases in the market, as traders and investors tend to take profits and liquidate their positions to fund their holiday expenses.

    Meanwhile, as investors sell off their holdings, the market will likely remain bearish until the new year, when trading activity is expected to increase.

  • MARA Holdings Buys 15,574 BTC for $1.53 Billion

    MARA Holdings Buys 15,574 BTC for $1.53 Billion

    Famous American Bitcoin (BTC) miner MARA  Holdings has gone BTC shopping again for the second time in Q4 2024. On Thursday, the firm revealed via an X post that it has topped up its bitcoin stash by 15,574 units and now holds 44,394 BTC, 0.21% of the total fixed bitcoin supply.

    Since MARA is a miner, it does not acquire all of its BTC from the market, making it a tedious task to calculate its average purchase price. Meanwhile, MARA purchased its last BTC at approximately $98,529 per bitcoin.

    $1.53B BTC Achieved

    As the miner revealed, it spent about $1.53 billion from the $1.925 billion it raised from 0% convertible notes offering in November and December to fund its just-announced bitcoin purchase. It spent about $263 million to repurchase the aggregate principal amount of its existing convertible notes due 2026 and plans to use the remaining note proceeds to acquire more bitcoins.

    Following the acquisition, the miner holds about $4.52 billion in BTC, based on the bitcoin spot price of $102,000 at press time. MARA strategic bitcoin reserve has proved profitable, achieving a BTC Yield of 22.5% QTD and 60.9% YTD.

    MARA Maintains Top Spot

    Notably, MARA is the first miner to publicize its Bitcoin reserve strategy. Since then, it has periodically purchased the crypto from the open market, setting the pace for others to follow in its footsteps while hodling their mined bitcoins.

    Others on the list include Riot Platforms, which raised about $500 million from convertible notes to purchase BTC last week, and Hut 8, which announced its first purchase today. Both miners hold 17,429 and 10,096 bitcoins, respectively.

    Meanwhile, MARA Holdings ranks second on the list of institutional bitcoin holders as American business intelligence firm MicroStrategy sits at the top of the table with its massive 439,000 BTC holdings.

  • Human Rights Foundation Boosts Bitcoin Development with 7 BTC Donation

    Human Rights Foundation Boosts Bitcoin Development with 7 BTC Donation

    The Human Rights Foundation (HRF) has donated 700,000,000 sats, equivalent to about seven bitcoins (BTC) worth $707,000, to support projects worldwide that focus on technical education for individuals under authoritarian rule, supporting independent media outlets, decentralizing mining operations, and providing human rights groups with private financial solutions.

    As a non-governmental organization (NGO), the HRF uses crypto donations to empower communities and promote financial freedom.

    20 Companies Globally

    According to a recent report, the HRF plans to distribute its donation among 20 projects worldwide to ensure that the funds reach the areas where they are needed most. While the organization does not reveal how the donated BTC will be distributed, it notes that the major regions of attention are Africa, Asia, and Latin America.

    Some projects that’ll benefit from the BTC donation include Stratum V2 Reference Implementation (SRI), an open-source software that enables nodes to create block templates, and Brink, an NGO aimed at advancing the Bitcoin protocol through research development and education. Unify, a Payjoin-enabled wallet that boosts Bitcoin transaction privacy, and 17 others are on the list.

    Remarkably, this is just one of the many times the HRF has donated BTC to support projects. Earlier in Q2 2024, it donated 10 BTC (1 billion sats) to support 13 projects globally.

    To facilitate its BTC donations, the NGO has established the HRF Bitcoin Development Fund as an initiative to support the development of the Bitcoin network and ecosystem.

    Corporate Bitcoin Adoption Soars

    Notably, the HRF holds more BTC on its bag, accepts donations from interested donors, and accepts applications for grant support from different firms worldwide.

    Other institutions across various continents also hold BTC in their bags, adopting it as their primary reserve asset as a wedge against fiat inflation.

    Firms like American, MicroStrategy, which holds 439 000 BTC, and Japanese Metaplanet are on the list, as they foresee a better future for the crypto ecosystem in coming years.

    Meanwhile, a few Bitcoin miners, such as MARA Holdings, Riot, and Hut 8, have also made Bitcoin their primary reserve asset.

  • Bitcoin Miner Hut 8 Spends $100M in 990 BTC Purchase

    Bitcoin Miner Hut 8 Spends $100M in 990 BTC Purchase

    Florida-based Bitcoin mining firm Hut 8 has announced its purchase of  990 bitcoins for $100 million. The investment was executed at an average price of $101,710, bringing its total Bitcoin reserve to 10,096 BTC, currently valued at over $1 billion.

    According to an official press release, the company claims the latest purchase is part of its broader capital strategy to optimize its balance sheet performance and funding growth initiatives.

    With the latest purchase, Hut 8 believes it is well-positioned to drive platform expansion, create long-term value, and deliver strong returns to shareholders. The company’s flexible approach to managing its Bitcoin reserve will enable it to respond to emerging opportunities and navigate the crypto industry.

    Hut 8 Bitcoin Reserve

    Despite being a BTC miner firm, the company is unsatisfied with only mined bitcoins. Its Bitcoin reserve is built through low-cost production and strategic at-market purchases. The company pledges to continue actively managing and trading its holdings to unlock additional value.

    The company’s CEO, Asher Genoot, said that the Bitcoin reserve is a key component of the firm’s treasury strategy. He further emphasized that the approach will create a flywheel effect, aligning the company’s capital and operating strategies to accelerate value creation.

    Hut 8’s Bitcoin reserve will be a flexible asset, allowing the firm to leverage it through various strategies, such as option strategies, pledges, sales, or other approaches. Decisions on utilizing the reserve will be made on a case-by-case basis, prioritizing return on invested capital and guided by rigorous cost-benefit analysis.

    Other Bitcoin Miners Aggressively Buy BTC

    Despite market fluctuations, other miners also actively buy BTC from the open crypto market. Riot Platforms has accumulated 17,429 bitcoins. Its consistent buying has been seen as a vote of confidence in Bitcoin’s potential as a store of value and hedge against inflation.

    Another Bitcoin Miner, Mara Holdings, has also consistently purchased bitcoins. Focusing on BTC mining and accumulation, the firm positions itself for potential long-term growth and returns. Today, the firm has added 15,574 BTC to its holdings, bringing its Bitcoin portfolio to 44,394, worth over $4.4 billion.

  • El Salvador Eases Bitcoin Mandate in $1.4B IMF Loan Agreement

    El Salvador Eases Bitcoin Mandate in $1.4B IMF Loan Agreement

    El Salvador, the world’s first country to adopt bitcoin (BTC) as legal tender, has agreed to amend its stance on Bitcoin payments as part of a $1.4 billion loan agreement with the International Monetary Fund (IMF). 

    A $1.4 Billion Deal

    According to an official report, the Central American country is set to receive $1.4 billion from the IMF within the next 40 months after committing to actions designed to reduce its debt-to-GDP percentage.

    “The Salvadoran authorities and a staff team from the IMF have reached staff-level agreement on a 40-month extended arrangement under the Extended Fund Facility (EFF) for about US$ 1.4 billion (equivalent SDR 1,033.9 million, or 360 percent of quota) to address the balance of payment needs and support the government’s economic reforms,” the Salvadoran team said. 

    Furthermore, the team added that the agreement is subject to approval by the Fund’s Executive Board and contingent on the implementation of the agreed prior actions.  

    The IMF also noted that the process will minimize the potential risks and challenges associated with the Bitcoin initiative by the Fund’s policies. Legal changes will ensure that the private sector’s adoption of BTC remains optional. This adjustment is designed to alleviate concerns over forced adoption while maintaining Bitcoin’s legal tender status.

    The $1.4 billion loan from the IMF is expected to provide much-needed fiscal support to El Salvador, which has faced mounting economic pressures, including high debt levels and a struggling economy. The funds will support public finances, support social programs, and stimulate economic growth. In return, the government has agreed to implement fiscal reforms, including the voluntary BTC policy.  

    El Salvador Boosts Bitcoin Adoption

    El Salvador started purchasing BTC in 2021, and according to the National Bitcoin Office’s tracker, the country now owns 5,968.8 bitcoins, valued at approximately $602 million. 

    With recent progress in the country, American broadcaster Max Keiser said El Salvador is living America’s dream through BTC.  

    Keiser further noted that El Salvador’s president, Niyab Bukele, is one of the most popular leaders in the world and that, under his bitcoin strategy, the country has become one of the safest in the Western Hemisphere. 

    On October 28, 2024,  the country marked three years of BTC Acquisition and held nearly 6,000 BTC. At the time, El Salvador’s total Bitcoin holdings, comprising both mined and purchased units, exceeded $400 million, with a balance of 5,917 BTC.

  • Bitcoin ETF Inflow Streak Continues Despite Price Drop

    Bitcoin ETF Inflow Streak Continues Despite Price Drop

    United States-approved spot Bitcoin exchange-traded funds (ETFs) have shown resilience amid the recent waves in the crypto market. The funds recorded only seven days of outflow in November and started this month with a 14-day inflow streak. 

    Following the U.S. interest rate cut on Wednesday and the speech by Jerome Powell, Chair of the Federal Reserve Board, bitcoin (BTC) dropped by almost 5% to hit the $100,000 mark. Despite this sharp plummet, the ETFs closed the business day on the green side, signaling increased investor confidence in the world’s leading crypto. 

    Over $6 Billion in 14 Days

    According to data from ETF tracker Farside, between November 29 and December 18, 2024, U.S. spot Bitcoin ETFs have immersed about $6.35 billion from investors who have shown interest in BTC but do not want to go through the procedures of acquiring it from a crypto exchange or managing a self-custodial wallet.

    Notably, BlackRock’s Bitcoin Trust, IBIT, dominated about 90% of the inflow streak with a whopping $5.8 billion intake. Concluding Wednesday, the fund has recorded a massive net inflow of $37.4 billion with just seven outflow days since its debut in January.

    Trailing IBIT is Fidelity’s FBTC, which had an inflow of $1.08 billion within the 14-day period and just one outflow day. The other nine ETFs had minimal inflows, and only Grayscale’s GBTC stained the market with its ten outflow days.

    GBTC has recorded more outflows than the collective inflows of the other nine bitcoin ETFs, excluding IBIT. This is because of its high maintenance fee of 2.0%, while its competing ETFs are charged at just 0.25% per annum. Grayscale has launched a mini bitcoin trust, with the ticker IBIT, which has been on the green side with over $1 billion in inflows since its launch in late July.

    Crypto ETFs in the U.S.

    Following the approval of spot BTC and ether (ETH) ETFs in America earlier this year and their positive impact on the market, asset managers have developed more confidence and filed for other crypto ETFs, including spot Solana and XRP ETF.

    Meanwhile, the forthcoming resignation of U.S. crypto-pessimistic Chair Gary Gensler in January has boosted optimism that the ETF applications may be approved early next year. 

  • $744M in Crypto Longs Liquidated. Why the Market Dip?

    $744M in Crypto Longs Liquidated. Why the Market Dip?

    Over $865 million of perpetual contracts were liquidated following Jerome Powell’s speech after the last FOMC meeting. Longs took the biggest hit at around $744 million, while shorts accounted for around $121 million. The fact that longs were more massively liquidated suggests that many traders were caught off guard by the market’s sudden move.

    The Federal Open Market Committee (FOMC) meets eight times annually. During these meetings, the committee thoroughly examines economic and financial conditions, formulates monetary policy decisions, and evaluates potential risks to achieving its objectives of long-term price stability and sustainable economic growth.

    Powell’s Speech Sparks Crypto Market Dip

    The recent drop in the value of Bitcoin and other assets like ETH, SOL XRP, and DOGE can be attributed to the Federal Reserve’s cautious stance on future interest-rate reductions. Powell’s shift triggered a retreat in crypto investments, leading to a drop in Bitcoin’s value of over 5%. According to CoinMarketCap, the largest crypto dipped to a low of $99,047.

    The Fed’s decision to lower interest rates again while hinting at fewer future cuts has created uncertainty in the market. This has made investors cautious and led to increased volatility. Chair Jerome Powell emphasized the need for further progress on inflation before making further rate reductions.

    However, despite the recent dip, Bitcoin has experienced significant growth since the United States election, surging 50% in value and reaching a record high of $108,316 earlier this week. President-elect Donald Trump’s pledge to free crypto from U.S. regulatory shackles has buoyed investor confidence, with some experts predicting a good floor and outlook for Bitcoin.

    Not Only the Crypto Market

    The impact of Powell’s speech was not limited to the crypto market; it had far-reaching consequences across various sectors. The stock market plummeted by 3% while yields on the 10-year treasuries reached their highest in seven months. The recent market reaction is the worst after-meeting selloff since the onset of the pandemic.

    Tom di Galoma, head of fixed income at Curvature Securities, noted that markets were unprepared for the latest Fed announcement. While officials predicted only two rate cuts over the next 12 months, Galoma said: “Powell is moving to neutral and waiting for the next administration to push their agenda and see then what he may need to do.”

    On the other hand, BTC is currently trading at $101,751, indicating some support below $100,000.

  • Ohio Lawmaker Proposes Bitcoin Reserve Bill to Enable State BTC Purchases

    Ohio Lawmaker Proposes Bitcoin Reserve Bill to Enable State BTC Purchases

    An Ohio lawmaker has introduced a bill that could position the state to embrace Bitcoin (BTC). The proposed legislation seeks to establish a state Bitcoin reserve, allowing Ohio to purchase and hold BTC as part of its financial assets.

    The bill, HB 703, introduced by Representative Derek Merrin, aims to modernize Ohio’s financial strategies by integrating bitcoin into its treasury. The legislation noted the creation of a framework for the state to acquire, hold, and potentially utilize BTC in various capacities, including as a hedge against inflation and a tool for diversifying state financial reserves.

    “The U.S. Dollar is being rapidly devalued, and our State Treasurer should have the authority and flexibility to invest in Bitcoin when determining proper asset allocation. Ohio must embrace technology and protect tax dollars from eroding,” Merrin said.

    Merrin further noted that he anticipates the incoming Trump administration will seek to create a national bitcoin reserve, just like Senator Cynthia Lummis proposed to help America’s balance sheet.

    The Ohio lawmaker also stated that he expects the bill to serve as a foundation for Ohio’s upcoming legislative session, given that it comes just two weeks before the 135th General Assembly concludes on December 31. Merrin hoped that the bill will lay the groundwork for legislators to address it promptly in the coming year.

    “Bitcoin is revolutionizing finance and will reshape world economies. We must have sound money — it’s like digital property rights for everyone who owns it. This legislation sets up the framework for Ohio’s state government to harness the power of Bitcoin and strengthen our state finances,” he added.

    Bitcoin As a Threat to US Economy

    If passed, the bill could have far-reaching implications for Ohio and other states considering similar measures. Advocates argue that holding the crypto asset could provide a hedge against the volatility of fiat currencies and protect against economic downturns. Critics, however, have raised concerns about bitcoin’s volatility and potential risks.

    Peter Schiff, CEO and chief global strategist of Euro Pacific Capital Inc., believes investing in BTC is not wise. He notes that Bitcoin poses a national security threat to the US economy. The American stock broker goes further, adding that government officials squander the public’s funds to purchase the digital asset.

    BTC As a Reserve Asset

    Meanwhile, other states, like Texas and Pennsylvania, have filed similar legislation to establish Bitcoin reserves. On October 30, 2024, Florida Chief Financial Officer (CFO) Jimmy Patronis pushed to include BTC in state pension funds.

    The CFO also proposed that the State Board of Administration (SBA) could establish a “Digital Currency Investment Pilot Initiative” within the framework of the Florida Growth Fund.

  • Bitcoin Gains Over 100% in 100 Days. What’s Next?

    Bitcoin Gains Over 100% in 100 Days. What’s Next?

    Bitcoin has been on a rally lately, surpassing 100% gains in just 100 days. According to the aggregator platform CoinMarketCap, the crypto price has surged from $53,628 to $107,780, witnessing a 101% increase. This remarkable growth has its investors and enthusiasts wondering what’s driving the surge and what’s next for the digital asset.

    What is Moving BTC Price?

    The recent price increase can be attributed to increased demand and decreased supply. As more institutional investors and individuals enter the market, the demand for Bitcoin has skyrocketed. At the same time, the supply of new bitcoins has slowed, leading to a shortage and driving up prices.

    The approval of Bitcoin spot exchange-traded funds (ETF) by the United States Securities and Exchange Commission (SEC) in January 2024 also played a significant role in Bitcoin’s growth. The spot ETF gives investors direct exposure to the underlying value of Bitcoin at market prices, making it more accessible to institutional investors and individuals alike.

    This development marked a milestone in the mainstream adoption of BTC. It provided a regulated and secure way for investors to gain exposure to Bitcoin, and as a result, its price has continued to soar.

    Nonetheless, the recent surge in Bitcoin’s value is mainly attributed to the concluded United States election. The Trump election victory ignited a renewed interest in Bitcoin, with its price increasing by over 32% one week after the election. This increase was primarily driven by expectations that the new president would be “crypto-friendly.”

    What’s Next for BTC?

    The crypto market is known for its volatility, and Bitcoin is no exception. However, despite the associated risks, many experts believe that BTC has the potential to continue growing in value. Some have even predicted it could reach $200,000 or more in 2025.

    Interestingly, Bitcoin is leading the charge as the crypto market grows. With its recent gains and predicted future growth, it’s an exciting time for investors and enthusiasts alike. Staying informed and up-to-date on the latest developments is essential for seasoned crypto investors and those new to exploring the market.

    The next few months will be crucial for Bitcoin as investors and experts wait to see if it can sustain its current momentum. Will Bitcoin continue to soar to new heights, or will it experience a correction? Only time will tell.

    Meanwhile, the leading crypto is currently priced at $107,941, having increased by 2.79% in the last 24 hours.