On December 4th, the cryptocurrency market continued to show a fluctuating trend, with bitcoin hovering around 96,000 dollars for nearly a week. As of the time of writing, $Bitcoin (BTC.CC)$ it is up 0.61% to 96,510.00 dollars; $Ethereum (ETH.CC)$ it is up 1.58% to 3,671.61 dollars.
Key Focus
Data: The balance of bitcoin on exchanges continues to decline to 2.312 million coins.
According to statistics from HODL15Capital, the balance of bitcoin on exchanges continues to decline, with the total balance on major exchanges currently approximately 2.312 million BTC. In the past month, it has decreased by 0.1162 million BTC, an aggregate decrease of 0.3158 million BTC since the beginning of 2024, representing a drop of 12.8%. Specifically, Coinbase saw the largest decrease, with an outflow of 38,311 BTC in the past 30 days, and a cumulative outflow of 281,840 BTC since the beginning of the year; Binance saw a decrease of 29,369 BTC in the past 30 days, with an annual outflow of 6,860 BTC. Notably, OKX is the only exchange that has shown an increase, adding 33,834 BTC since the beginning of the year.
The Trump administration may allow more crypto companies to conduct IPOs.
The Trump administration may allow more cryptos companies to conduct IPOs, and the future regulatory environment may change, thus providing more financing channels and development opportunities for crypto companies. It is reported that the initial public offering market may soon open to stablecoin provider Circle Internet Financial, trade platform Kraken, and other companies wishing to go public.
Analysis: If microstrategy is included in the qqq etf, it essentially means "bringing more bitcoin into the index."
Jeff Park, the head of Bitwise alpha strategy, stated that if microstrategy is included in the nasdaq 100 index and the 312 billion dollar Invesco qqq etf (qqq), it essentially means "bringing more bitcoin into the index."
CryptoQuant: Bitcoin exchange reserves have fallen to their lowest level in years.
According to The Block, bitcoin exchange reserves have plummeted to their lowest level in years, indicating that investors' confidence in holding bitcoin long-term is increasing. CryptoQuant data shows that since November 5, when Trump won the us election, more than 171,000 bitcoins have been withdrawn from major crypto exchanges. This trend has reduced the liquid supply of bitcoin, suggesting that investors are shifting their hold positions to cold wallets, which may be part of their long-term strategy.
Since 2021, exchange reserves have been declining, reflecting a broader trend of long-term holding. According to CryptoQuant, exchange reserves were approximately 3.2 million bitcoins in October 2021, and have now fallen to 2.46 million, the lowest level in years. Similarly, Glassnode's data shows that its illiquid supply indicator (i.e., bitcoins held by long-term investors and not actively traded) increased by 185,000 in the past 30 days, reaching a record 14.8 million bitcoins, which accounts for about 75% of the current circulating supply (approximately 19.79 million).
Sources: Trump has nominated Paul Atkins, who supports cryptos, to serve as the chair of the USA SEC.
According to Unchained Crypto reports, the USA's elected president Donald Trump has nominated Paul Atkins, a supporter of the crypto industry, to serve as the chairman of the Securities and Exchange Commission (SEC). It is reported that Atkins is the first libertarian to serve as an SEC commissioner during the George W. Bush administration and has long supported the crypto industry.
Sources say that Trump has approached Atkins, but he is yet to formally accept the nomination. As a substitute candidate, Atkins must be confirmed by the Senate, otherwise Trump may appoint him directly during the Senate recess. Atkins co-founded the Token Alliance in 2017, focusing on cryptocurrency policy, and has long provided compliance consulting for digital financial companies. Those familiar with Atkins' views indicate that this position lacks appeal for him as it requires significant effort to reverse the cumbersome institution, and it would necessitate him resigning from his current business roles.
Research: MicroStrategy's asset value will only fall below its liabilities if bitcoin drops to $18,826.
According to Cointelegraph reports, research published by capital consultant Jeff Walton shows that MicroStrategy can disregard the concern of bitcoin's bear market price plummeting to $20,000, as the company’s bitcoin assets will not be significantly affected. The study indicates that even if bitcoin's price falls by 80%, MicroStrategy will still be able to withstand such a price collapse. Although MicroStrategy's bitcoin exposure is higher than ever, and the company continues to purchase more bitcoin, analysis shows that even in the event of a prolonged price correction, there would be no significant issue for MicroStrategy and CEO Michael Saylor.
Walton calculated that MicroStrategy's assets would only drop below its liabilities when the bitcoin price falls to $18,826. The practice of incorporating bitcoin risk into the company's balance sheet has faced considerable criticism. Moreover, bitcoin has previously experienced an 80% pullback. For instance, between November 2021 and November 2022, btc/usd fell from $69,000 to a low of $15,600. However, for Walton, the arguments against companies adopting bitcoin hold little logical weight.
Coinbase CEO: The usa government should not sell bitcoin, about 12.5% of Coinbase's assets are bitcoin.
$Coinbase (COIN.US)$ CEO Brian Armstrong stated on social media that selling bitcoin by the usa government is a "major strategic mistake," and believes it should not sell its held bitcoin. Additionally, he revealed that about 25% of Coinbase's net asset value (after liabilities) is in cryptos, half of which is bitcoin, accounting for 12.5% of the total net asset value. He pointed out that due to most of Coinbase's liabilities still being denominated in usd, it is currently difficult to bear a higher bitcoin allocation risk, but is open to increasing the hold positions ratio and welcomes the community to discuss this.
Bitcoin mining company MARA plans to acquire a wind farm in Texas, usa to mine bitcoin.
According to Bloomberg, based on documents submitted by the bitcoin mining company $MARA Holdings (MARA.US)$ MARA acquired a wind farm located in Hansford County, north Texas, from a joint venture of National Grid Plc and the Washington State Investment Board. The transaction price has not been disclosed. MARA plans to utilize the facility's 114 megawatts of electrical utilities to mine bitcoin when it is windy, and to cease operation when it is not.
MARA's chairman and CEO, Fred Thiel, stated in an interview: "We can move the market to where the energy is, rather than moving the energy to where the market is." He also added that the facility's running time could be around 30%, which eliminates dependence on the power grid. Thiel mentioned that the plan to mine only when it is windy is economically sensible, as the mining site will accommodate older generation mining rigs that would otherwise be retired; this sale is expected to be completed in the first quarter of 2025; he is interested in purchasing more wind farms over time.
Editor/rice