The question of whether Bitcoin’s 21 million supply cap is truly immutable has resurfaced after BlackRock released a three-minute explainer video on Dec. 17. The video included a disclaimer suggesting there’s no guarantee the cap won’t be altered.
Bitcoin’s fixed supply is a cornerstone of its value as a store of wealth, and any change could fundamentally impact its perception among investors.
In the video, BlackRock highlighted Bitcoin’s 21 million cap, noting it as a “hard-coded rule” that controls supply, purchasing power, and prevents excessive currency creation. However, the disclaimer stated: “There is no guarantee that Bitcoin’s 21 million supply cap will not be changed.”
MicroStrategy chairman Michael Saylor reposted the video, sparking criticism. Joel Valenzuela, Dashpay’s marketing director, commented, “When the supply cap increase happens, it will have ‘always been part of the plan.’ And today, in 2024, people have the audacity to say Bitcoin wasn’t hijacked.”
Ethereum developer Antiprosynthesis added, “BlackRock understands Bitcoin better than Bitcoiners.”
Is Bitcoin’s Supply Cap Changeable?
Bitcoin developer Super Testnet, known for BitVM, explained that altering Bitcoin’s supply cap would depend on how one defines “Bitcoin.”
In theory, the cap could change if a majority of the community—node operators, developers, miners, and investors—reached consensus on a hard fork. Such a change would involve a proposal to gauge consensus, followed by implementing changes in Bitcoin Core.
If most node operators and miners adopted the new fork, it would create a “new” Bitcoin network with an uncapped supply. However, Super Testnet argued that this new chain wouldn’t truly be Bitcoin.
“The inflation cap is definitional to Bitcoin,” they said. “Eliminate that, and whatever you have isn’t Bitcoin anymore. You might as well ask what it would take to turn Bitcoin into PayPal.”
In essence, an uncapped version wouldn’t be Satoshi Nakamoto’s Bitcoin.
Bitcoin briefly slipped below the $100,000 psychological level before reclaiming it, sparking mixed reactions among crypto analysts.
“Bitcoin is developing a bearish engulfing weekly candlestick formation,” pseudonymous trader Rekt Capital shared with their 518,900 followers on X in a Dec. 19 post.
Bearish Pattern Yet to Be Confirmed
Rekt Capital noted that the potential downtrend is not yet set in stone. “There are still a few days until the end of the week to ‘fully confirm’ the downtrend, and ‘lots can change’ in the meantime,” they stated.
“Technically, this is still a dip until Weekly levels are confirmed as lost,” they added.
Between 2 and 3 am UTC on Dec. 19, Bitcoin briefly dipped below $100,000 for the first time since Dec. 13, reaching a low of $99,047, according to CoinMarketCap.
This dip occurred amid a broader crypto sell-off following the U.S. Federal Reserve’s announcement of a 25 basis point rate cut and hints at fewer rate cuts in 2025 than initially anticipated.
Not Everyone Is Concerned
Some traders downplayed the dip. “This pullback is pretty normal for Bitcoin. We’ve had 8 of them since October,” Bitcoin Archive commented on X.
“If you’re selling your Bitcoin in reaction to what the Fed said today, you have no idea what you own,” added crypto commentator James Lavish.
Volatility Is Part of Price Discovery
Bitcoin reached $100,000 for the first time on Dec. 5, driven by ETF demand, the upcoming April halving, and Donald Trump’s election victory.
Rekt Capital reminded traders that volatility is natural in this phase. “Technically, it is Week 7 in Price Discovery, which historically meant that BTC corrections occur around this time,” they said.
While some see such dips as “flash crashes,” Rekt suggested the correction could extend into next week, adding, “We know that Week 7 and Week 8 in Price Discovery have historically been corrective weeks.”
The cryptocurrency community has criticized Coinbase for its explanation of delisting Wrapped Bitcoin (WBTC), linking the decision to “unacceptable risk” associated with Tron founder Justin Sun.
On Dec. 17, Coinbase responded to a lawsuit filed by Sun-affiliated BiT Global, which accused the exchange of harming the WBTC market by removing the token in November.
In its filing, Coinbase cited risks tied to Sun, including allegations of financial misconduct and ongoing regulatory investigations.
“Guilt by Association”
The filing sparked backlash within the crypto community, with many arguing Coinbase failed to provide sufficient legal or technical justification for the delisting.
Critics also pointed out that Coinbase itself has been under several regulatory investigations.
Bitcoin enthusiast and Coinbase skeptic Pledditor took to X on Dec. 17, accusing the exchange of making a decision based solely on personal bias.
“It’s basically just they don’t like Justin Sun,” Pledditor stated, calling it “guilt by association.”
The filing referenced Sun’s alleged misconduct, claiming he has “reportedly violated industry and government standards intended to prevent fraud.”
Coinbase expressed skepticism over BiT Global’s reliability, citing its association with Sun.
“So too is any acknowledgment that he has repeatedly been accused of, investigated for, and sued for financial misconduct, and that reports of his alleged misdeeds abound in the press and crypto community more broadly,” the filing stated.
Sun’s Regulatory Troubles
Justin Sun, founder of the Tron cryptocurrency, has faced numerous legal challenges.
In March 2023, the U.S. Securities and Exchange Commission (SEC) charged him with fraud and securities violations.
He has also reportedly been investigated by the FBI and the Southern District of New York’s prosecutor’s office.
Irony Noted by Critics
Prominent figures like VanEck adviser Gabor Gurbacs pointed out the irony of Coinbase’s actions, given its own legal troubles.
“It’s ironic that Coinbase is treating Justin Tron this way. Coinbase itself is under SEC and numerous other investigations, probably many more than Justin and his businesses,” Gurbacs said in an X post shared by Sun.
Since its launch on January 11, the Grayscale Bitcoin Trust (GBTC) has seen outflows exceeding $21 billion, making it the only spot Bitcoin ETF in the U.S. with a negative net investment flow.
As of December 16, GBTC’s total outflows reached $21.045 billion, with the trust losing an average of $89.9 million daily over the past 11 months, according to Farside Investors.
While 10 other spot Bitcoin ETFs in the U.S. maintain positive net flows, GBTC’s massive outflows surpass the total inflows of nine of these funds combined.
The nine newer funds, including the Fidelity Wise Origin Bitcoin Fund, ARK 21Shares Bitcoin ETF, and Invesco Galaxy Bitcoin ETF, have collectively attracted $20.737 billion since their launch.
In contrast, BlackRock’s iShares Bitcoin Trust (IBIT) has significantly bolstered the market. IBIT alone has brought in $35.883 billion, with daily inflows averaging $153.3 million since its debut.
Despite GBTC’s challenges, the spot Bitcoin ETF market has surged, reaching $35.5 billion in total investments within the year.
Grayscale’s Ethereum Trust ETF (ETHE), launched on July 23 alongside eight other spot Ether ETFs, is also experiencing substantial outflows.
ETHE has lost over $3.5 billion in under six months, following a trend similar to GBTC.
Meanwhile, other Ether ETFs have posted positive inflows, led by BlackRock’s iShares Ethereum Trust ETF (ETHA) with nearly $3.2 billion in investments and Fidelity Ethereum Fund (FETH) with $1.4 billion.
These developments highlight contrasting investor sentiment, as BlackRock continues to dominate the market while Grayscale faces significant investment challenges.
Bitcoin rallied nearly 5% on Dec. 15, reaching a new all-time high of $106,554, fueled by speculation that it may become a U.S. reserve asset.
Data from TradingView shows Bitcoin surpassed its previous high of $104,000, set on Dec. 5, before retracing slightly.
CK Zheng, chief investment officer of ZK Square, attributed the surge to a “Santa Claus mode,” as investors fear missing out and increase their capital allocation to Bitcoin.
Zheng predicted Bitcoin could hit $125,000 by early 2025 but cautioned about a potential 30% correction as much of the bullish sentiment tied to the incoming Trump administration has already been “priced in.”
Such a correction from $125,000 would bring Bitcoin down to approximately $87,500.
Trump Administration Speculation Fuels Rally
The rally follows comments from Strike CEO Jack Mallers, who suggested President-Elect Donald Trump might issue an executive order on Jan. 20, designating Bitcoin as a reserve asset.
“There’s potential to use a day-one executive order to purchase Bitcoin,” Mallers said, though he clarified, “It wouldn’t be the size and scale of 1 million coins, but it would be a significant position.”
Meanwhile, Dennis Porter, CEO of the Satoshi Action Fund, revealed that a third Bitcoin reserve bill is in progress at the state level, joining similar measures in Texas and Pennsylvania.
“We’re going to see more and more of these bills come. At least 10, in my opinion,” Porter said during a Dec. 15 X Spaces discussion.
Additional Catalysts for Bitcoin’s Surge
Financial analysts are also anticipating a 0.25% interest rate cut by the U.S. Federal Reserve on Dec. 18, which could further boost Bitcoin.
Additionally, a new Financial Accounting Standards Board rule taking effect after Dec. 15 allows institutions to more accurately report the value of their crypto assets, potentially attracting more institutional investors.
The Crypto Fear and Greed Index currently ranks market sentiment in the “Extreme Greed” zone at 83 out of 100.
Michael Saylor, the mastermind behind MicroStrategy’s Bitcoin investment strategy, hinted that the company may have added more Bitcoin to its holdings over the weekend.
In a Dec. 15 post to X, Saylor questioned whether the SaylorTracker portfolio tracker was “missing a green dot,” implying another Bitcoin purchase by the firm.
Consistent Purchasing Pattern
Saylor has shared the SaylorTracker chart on five consecutive Sundays since Nov. 10, with Bitcoin purchases being confirmed the following Monday each time.
If confirmed for a sixth time, this purchase would mark MicroStrategy’s first acquisition at an average Bitcoin price exceeding $100,000.
According to CoinGecko, Bitcoin hasn’t traded below six figures since 5:00 pm UTC on Dec. 13.
MicroStrategy previously reported buying Bitcoin at average prices of $97,862, $95,976, and $98,783 over the past three Mondays, from Nov. 25 to Dec. 9, according to SaylorTracker data.
A new purchase at similar levels would bring the company closer to reaching a $50 billion Bitcoin portfolio.
As of Dec. 15, MicroStrategy held 423,650 Bitcoin, valued at over $43.6 billion.
Bitcoin Milestones and Market Impact
This potential purchase came just a day before Bitcoin reached a new all-time high of $106,554.
Saylor has made it clear the company won’t slow down its Bitcoin buying spree, stating he’s “sure” MicroStrategy will continue purchasing even at a price of $1 million per Bitcoin.
MicroStrategy’s Stock Performance
MicroStrategy’s (MSTR) stock has soared 496.4% year-to-date, according to Google Finance.
The impressive performance has earned the company a spot in the Nasdaq-100, a prestigious index comprising the 100 largest non-financial companies listed on Nasdaq.
With its consistent investments, MicroStrategy remains a major force in the Bitcoin ecosystem.
Crypto exchange Coinbase is being sued for over $1 billion by BiT Global Digital Limited, alleging market harm after Coinbase’s November decision to delist Wrapped Bitcoin (wBTC).
In a Dec. 13 complaint, BiT Global accused Coinbase of delisting wBTC to promote its own product, cbBTC.
The move allegedly caused significant financial losses and damaged consumer confidence in wBTC.
The lawsuit claims attempted monopolization of the wrapped Bitcoin market under the Sherman Act, predatory practices to undermine wBTC, and false statements suggesting wBTC failed to meet listing standards.
Coinbase announced the token delisting on Nov. 19, citing undisclosed failures to meet its listing standards.
A Coinbase spokesperson defended the decision, stating: “Coinbase is committed to maintaining the high integrity of our listing standards, and we regularly evaluate assets listed on our platform. Should an asset fail to meet those standards, it is delisted.”
BiT Global, a Hong Kong-based crypto exchange, has been a joint custodian of wBTC reserves with BitGo since August.
The lawsuit, filed in the Northern District of California by law firm Kneupper & Covey, alleges Coinbase favored memecoins while challenging wBTC’s compliance with listing standards.
Attorney Kevin Kneupper stated, “We believe this decision sets a terrible precedent for everyone in the cryptocurrency space. If an exchange of Coinbase’s size can delist a cryptocurrency just as it plans to launch its own competing product, who’s safe? And who’s next?”
The lawsuit seeks damages exceeding $1 billion and demands injunctive relief to prevent further harm.
BiT Global claims Coinbase aimed to eliminate competition, stating: “It’s clear that Coinbase’s decision is an attempt to gain a competitive advantage, pushing forward their own wrapped Bitcoin product, cbBTC, and removing the largest and most influential competitor in wBTC.”
Coinbase previously announced: “Based on our most recent review, Coinbase will suspend trading for wBTC on Dec. 19, 2024, on or around 12 pm ET.”
Nasdaq announced that MicroStrategy (MSTR), led by prominent Bitcoin advocate Michael Saylor, will be added to the Nasdaq-100 Index starting Dec. 23.
MicroStrategy joins Palantir Technologies Inc. (PLTR) and Axon Enterprise, Inc. (AXON) as new additions to the index, according to a Dec. 13 statement from Nasdaq.
Meanwhile, Illumina, Inc. (ILMN), Super Micro Computer, Inc. (SMCI), and Moderna, Inc. (MRNA) will be removed.
MSTR Now Among Nasdaq’s Largest Companies
MicroStrategy, originally a software company that pivoted into becoming a de facto Bitcoin hedge fund in 2020, is now among Nasdaq’s 100 largest stocks by market capitalization.
Its inclusion also means that the Invesco QQQ Trust (QQQ), an ETF managing $322 billion in assets, will add MSTR to its portfolio.
Crypto Industry Reacts to the News
The announcement sparked excitement across the crypto community.
Crypto analyst Will Clemente commented on X, “Now that MSTR is getting added to the Nasdaq, every large pension fund, sovereign wealth fund, and individual retirement account in the world is going to have Bitcoin exposure.”
Jeff Park, head of alpha strategies at Bitwise Invest, declared, “The trade of the decade is just getting started. Buckle up.”
Felix Hartmann, founder of Hartmann Capital, added, “This news is not priced in until public markets open,” predicting active managers benchmarking against Nasdaq would adopt direct exposure to Bitcoin or MSTR to stay competitive.
Saylor’s Bitcoin Push Extends to Microsoft
This development follows Michael Saylor’s recent attempt to persuade Microsoft’s board to embrace Bitcoin.
During Microsoft’s annual meeting on Dec. 10, Saylor proposed that adopting Bitcoin could add nearly $5 trillion to Microsoft’s market cap.
“Microsoft can’t afford to miss the next technology wave, and Bitcoin is that wave,” Saylor argued.
Nasdaq announced that MicroStrategy (MSTR), led by prominent Bitcoin advocate Michael Saylor, will be added to the Nasdaq-100 Index starting Dec. 23.
MicroStrategy joins Palantir Technologies Inc. (PLTR) and Axon Enterprise, Inc. (AXON) as new additions to the index, according to a Dec. 13 statement from Nasdaq.
Meanwhile, Illumina, Inc. (ILMN), Super Micro Computer, Inc. (SMCI), and Moderna, Inc. (MRNA) will be removed.
MSTR Now Among Nasdaq’s Largest Companies
MicroStrategy, originally a software company that pivoted into becoming a de facto Bitcoin hedge fund in 2020, is now among Nasdaq’s 100 largest stocks by market capitalization.
Its inclusion also means that the Invesco QQQ Trust (QQQ), an ETF managing $322 billion in assets, will add MSTR to its portfolio.
Crypto Industry Reacts to the News
The announcement sparked excitement across the crypto community.
Crypto analyst Will Clemente commented on X, “Now that MSTR is getting added to the Nasdaq, every large pension fund, sovereign wealth fund, and individual retirement account in the world is going to have Bitcoin exposure.”
Jeff Park, head of alpha strategies at Bitwise Invest, declared, “The trade of the decade is just getting started. Buckle up.”
Felix Hartmann, founder of Hartmann Capital, added, “This news is not priced in until public markets open,” predicting active managers benchmarking against Nasdaq would adopt direct exposure to Bitcoin or MSTR to stay competitive.
Saylor’s Bitcoin Push Extends to Microsoft
This development follows Michael Saylor’s recent attempt to persuade Microsoft’s board to embrace Bitcoin.
During Microsoft’s annual meeting on Dec. 10, Saylor proposed that adopting Bitcoin could add nearly $5 trillion to Microsoft’s market cap.
“Microsoft can’t afford to miss the next technology wave, and Bitcoin is that wave,” Saylor argued.
Crypto exchange Coinbase is being sued for over $1 billion by BiT Global Digital Limited, alleging market harm after Coinbase’s November decision to delist Wrapped Bitcoin (wBTC).
In a Dec. 13 complaint, BiT Global accused Coinbase of delisting wBTC to promote its own product, cbBTC.
The move allegedly caused significant financial losses and damaged consumer confidence in wBTC.
The lawsuit claims attempted monopolization of the wrapped Bitcoin market under the Sherman Act, predatory practices to undermine wBTC, and false statements suggesting wBTC failed to meet listing standards.
Coinbase announced the token delisting on Nov. 19, citing undisclosed failures to meet its listing standards.
A Coinbase spokesperson defended the decision, stating: “Coinbase is committed to maintaining the high integrity of our listing standards, and we regularly evaluate assets listed on our platform. Should an asset fail to meet those standards, it is delisted.”
BiT Global, a Hong Kong-based crypto exchange, has been a joint custodian of wBTC reserves with BitGo since August.
The lawsuit, filed in the Northern District of California by law firm Kneupper & Covey, alleges Coinbase favored memecoins while challenging wBTC’s compliance with listing standards.
Attorney Kevin Kneupper stated, “We believe this decision sets a terrible precedent for everyone in the cryptocurrency space. If an exchange of Coinbase’s size can delist a cryptocurrency just as it plans to launch its own competing product, who’s safe? And who’s next?”
The lawsuit seeks damages exceeding $1 billion and demands injunctive relief to prevent further harm.
BiT Global claims Coinbase aimed to eliminate competition, stating: “It’s clear that Coinbase’s decision is an attempt to gain a competitive advantage, pushing forward their own wrapped Bitcoin product, cbBTC, and removing the largest and most influential competitor in wBTC.”
Coinbase previously announced: “Based on our most recent review, Coinbase will suspend trading for wBTC on Dec. 19, 2024, on or around 12 pm ET.”