Analysts at JPMorgan have raised price targets for four Bitcoin mining stocks to account for the value of miners’ electrical power assets and BTC holdings, according to a Dec. 10 report shared with Cointelegraph.
The upgraded stocks include MARA Holdings (MARA), CleanSpark (CLSK), Riot Platforms (RIOT), and IREN (IREN). All four are trading near or above their revised price targets.
“We previously valued Bitcoin miners based on the four-year gross profit opportunity for each operator,” analysts Reginald Smith and Charles Pearce stated in the report.
“We are expanding upon this framework by incorporating 1) the value of each company’s land and power assets […] and 2) a HODL premium, which gives miners credit for holding Bitcoin on their balance like MicroStrategy.”
HODL Premiums
The report highlighted that MicroStrategy (MSTR), which has transformed into a de facto Bitcoin fund, trades at approximately 2.4x the value of its BTC treasury.
As of Dec. 10, MicroStrategy’s year-to-date gains stood at nearly 450%, far exceeding Bitcoin’s 125% growth, according to Google Finance.
MicroStrategy holds the largest corporate BTC treasury, valued at roughly $40 billion. Major Bitcoin miners Marathon, Riot, and CleanSpark follow, with BTC treasuries worth $3.9 billion, $1.1 billion, and $890 million, respectively.
Corporate treasuries collectively hold over $53 billion in BTC as of Dec. 10, according to Bitcointreasuries.net, with many companies seeking similar trading premiums.
Power Acquisitions
Bitcoin miners have faced challenges adapting to the April 20 halving event, which cut mining rewards in half.
In response, cash-rich miners like Riot Platforms and CleanSpark acquired turn-key facilities to boost hashrates and expand their power pipelines.
“Riot has the most valuable power portfolio in our coverage universe, worth ~$1.3bn, by our estimate,” the December report noted.
Salvadoran President Nayib Bukele highlighted the country’s unrealized gains from its Bitcoin investments after the cryptocurrency surged past $100,000 for the first time on December 5.
Following Bitcoin’s milestone, the crypto-focused X account Autism Capital asked Bukele to disclose El Salvador’s Bitcoin portfolio to “dunk on the haters.” In response, Bukele posted the portfolio, revealing the nation’s nearly $270 million investment in Bitcoin.
The portfolio confirms that no Bitcoin has been sold, and unrealized gains now exceed $333 million, a significant validation of the country’s strategy.
El Salvador’s Bitcoin Journey
El Salvador became the first country to adopt Bitcoin as legal tender on September 7, 2021, when its Bitcoin Law came into effect. A day prior, the government made its inaugural purchase of 200 BTC.
Since then, the country has continued accumulating Bitcoin. On November 17, 2022, Bukele announced a dollar-cost averaging (DCA) strategy, committing to purchasing one Bitcoin daily.
According to Nayib Tracker, a platform monitoring El Salvador’s Bitcoin holdings, the country currently owns 6,180 BTC, with an average purchase price of $44,739.88. Based on current prices, the portfolio has gained approximately 122%.
Beyond financial gains, El Salvador has also seen increased tourism and international recognition since adopting Bitcoin.
IMF Urges El Salvador to Reconsider
Despite the reported benefits, the International Monetary Fund (IMF) has repeatedly advised El Salvador to scale back its Bitcoin initiatives.
On January 25, 2022, the IMF urged the country to stop recognizing Bitcoin as legal tender, citing financial stability risks but acknowledging its potential for financial inclusion.
The IMF renewed its concerns on October 3, 2024, with communications director Julie Kozack recommending the country narrow the Bitcoin Law’s scope and limit public sector exposure to Bitcoin.
Salvadoran President Nayib Bukele highlighted the country’s unrealized gains from its Bitcoin investments after the cryptocurrency surged past $100,000 for the first time on December 5.
Following Bitcoin’s milestone, the crypto-focused X account Autism Capital asked Bukele to disclose El Salvador’s Bitcoin portfolio to “dunk on the haters.” In response, Bukele posted the portfolio, revealing the nation’s nearly $270 million investment in Bitcoin.
The portfolio confirms that no Bitcoin has been sold, and unrealized gains now exceed $333 million, a significant validation of the country’s strategy.
El Salvador’s Bitcoin Journey
El Salvador became the first country to adopt Bitcoin as legal tender on September 7, 2021, when its Bitcoin Law came into effect. A day prior, the government made its inaugural purchase of 200 BTC.
Since then, the country has continued accumulating Bitcoin. On November 17, 2022, Bukele announced a dollar-cost averaging (DCA) strategy, committing to purchasing one Bitcoin daily.
According to Nayib Tracker, a platform monitoring El Salvador’s Bitcoin holdings, the country currently owns 6,180 BTC, with an average purchase price of $44,739.88. Based on current prices, the portfolio has gained approximately 122%.
Beyond financial gains, El Salvador has also seen increased tourism and international recognition since adopting Bitcoin.
IMF Urges El Salvador to Reconsider
Despite the reported benefits, the International Monetary Fund (IMF) has repeatedly advised El Salvador to scale back its Bitcoin initiatives.
On January 25, 2022, the IMF urged the country to stop recognizing Bitcoin as legal tender, citing financial stability risks but acknowledging its potential for financial inclusion.
The IMF renewed its concerns on October 3, 2024, with communications director Julie Kozack recommending the country narrow the Bitcoin Law’s scope and limit public sector exposure to Bitcoin.
Bitcoin’s recent climb to new all-time highs near $104,000 was followed by a sharp correction of over 10%, showcasing the volatility of the crypto market.
According to on-chain analytics platform CryptoQuant, Bitcoin’s short-term price action may now enter a phase of consolidation and “choppy” movements.
“The 14-day Choppiness Index is in an early zone showing corrective moves during consolidation,” wrote CryptoQuant contributor Percival in a blog post on Dec. 6.
The Choppiness Index (CI) measures market conditions on a scale of 0-100. Higher values indicate more erratic or “choppy” price action, while lower values suggest trending movements.
At the time of writing, Bitcoin’s daily CI was at 56.7, its highest level since mid-August, suggesting ongoing consolidation after the recent price swings.
“One thing to take into account is the time factor of consolidation. In the 2020/2021 cycles, there were 20 days of downtime, and in the consolidation since March, the average decline was ~20 days,” Percival explained.
“The greater the consolidation, the greater the rise.”
While this period of cooling off may frustrate Bitcoin bulls, analysts predict that longer consolidation could lead to a stronger breakout.
Potential BTC Targets: $110,000 and Beyond
Looking ahead, CryptoQuant highlights potential price targets for Bitcoin once the consolidation ends.
Percival suggests that key resistance levels will emerge at $110,000 and $120,000, based on market psychology and the realized price of short-term holders (STHs).
“The first level will be $110K (+1.5 standard deviations), a considerable profit zone for STH,” he noted.
“As traders connect to psychological numbers, $120K has a very impactful psychological and emotional charge, and being a value within +2 standard deviations makes this floor a deeper consolidation camp.”
Bitcoin’s next major move remains to be seen, but patient bulls could be rewarded with significant price gains.
Former U.S. Treasury Secretary Lawrence Summers criticized President-elect Donald Trump’s proposal for a strategic Bitcoin reserve, calling it “crazy” and a move to appease crypto campaign donors.
“Some of what is being said, this idea that we should have some kind of national Bitcoin reserve, is crazy,” Summers stated in an interview with Bloomberg TV on Dec. 6.
“I understand why we need a national oil reserve. I understand why a century ago, we accumulated gold in Fort Knox,” he added. “Of all the prices to support, why would the government choose to support, by accumulating a sterile inventory, a bunch of Bitcoin?”
“There’s no reason to do that other than to pander to generous special interest campaign contributors.”
Trump proposed that the U.S. government hold onto its seized Bitcoin, currently amounting to approximately 198,000 BTC worth over $19 billion, according to Arkham Intelligence.
Some Trump-aligned Republicans, like Wyoming Senator Cynthia Lummis, are pushing for legislation to acquire 1 million BTC — about 5% of the total supply — and hold it for at least 20 years.
Despite his criticism, Summers acknowledged some validity in Trump’s views on cryptocurrency.
“I think we need to support financial innovation wherever it may go, and there are probably respects in which crypto has been over-regulated by overzealous regulators,” he said.
Summers, who served as treasury secretary from 1999 to 2001 under President Clinton, also had a brief advisory role with the crypto conglomerate Digital Currency Group (DCG) in 2016.
Lummis’s push for a Bitcoin reserve aims to address the $36 trillion national debt.
However, Avik Roy, president of the Foundation for Research on Equal Opportunity, cautioned that the proposal is not a comprehensive solution.
“The Bitcoin reserve is good, but it does not solve the problem,” Roy stated at a crypto summit. “You still have to actually do the budgetary reforms to get us out of this $2 trillion a year of federal deficits.”
XRP has declined nearly 18% since hitting its 2024 high on Dec. 3, yet many traders remain optimistic about a recovery.
However, this confidence faces a potential challenge if Bitcoin dominance rises further, according to Pav Hundal, lead analyst at crypto exchange Swyftx.
“The real danger right now for highly leveraged XRP bulls is that Bitcoin dominance increases again. A rotation from XRP to Bitcoin would very likely lead to a bloodbath of liquidations,” Hundal told Cointelegraph.
Markets Show Appetite for XRP Long Positions
As of publication, Bitcoin dominance stood at 55.30%, a 5% decrease over the past week, according to TradingView.
Some traders believe Bitcoin dominance may peak between 60% and 70% before capital begins rotating into altcoins.
“We’ve seen a lot of quick twitch buying by retail over the last few weeks, and open interest is now close to double the levels we saw in 2021,” Hundal said, adding that markets have “developed a thirst for leveraged long XRP exposure.”
At publication, XRP was trading at $2.37.
A 7% drop to $2.18 could result in $104.4 million in long-position liquidations, Hundal warned, saying, “It’s starting to look like the market could be approaching euphoria territory.”
XRP had mostly traded between $0.48 and $0.73 throughout 2024 until Donald Trump’s presidential win on Nov. 5 triggered a 431% rally, pushing XRP to $2.85 on Dec. 3.
XRP Open Interest Hits $3.44 Billion
On Dec. 5, XRP’s Open Interest (OI) reached $3.44 billion, significantly higher than the $2 billion recorded in April 2021 during a similar price rally, per CoinGlass data.
Hundal noted that if Bitcoin stabilizes, it “could soothe nerves and spot volumes could pick up again.”
He added, “Funding rates on Binance are not hot, but across other exchanges, they are pretty warm. Anything over 50% on the one-year funding rate heatmap is generally considered pretty exuberant.”
As cryptocurrency prices soar, many investors feel they have missed out on significant gains, according to a new survey by Kraken.
On Dec. 4, Kraken released its Crypto FOMO Survey 2024, examining the impact of fear of missing out (FOMO) and fear, uncertainty, and doubt (FUD) on U.S. crypto holders’ investment decisions.
The survey polled 1,248 participants, revealing how emotions influence their approach to digital assets.
Investors Feel They Missed the Boat
A significant portion of respondents expressed regret over missed opportunities.
Kraken reported that 88% of survey participants believe they’ve lost out on major gains.
This sentiment has been fueled by Bitcoin’s rally, which saw BTC hit the $100,000 mark on Dec. 5 for the first time.
Bitcoin has surged 126% since January, driving the broader crypto market.
Altcoins have also seen substantial growth. XRP recently overtook Solana and Tether to become the third-largest cryptocurrency by market capitalization.
Despite feelings of missed opportunities, 84% of respondents remain optimistic about future crypto gains.
Emotions Influence Decisions
When asked about their greatest concerns, 60% cited sudden price surges as the biggest missed opportunity.
Additionally, 81% admitted making investment decisions based on FUD, while 84% said they acted on FOMO during price spikes.
The survey also revealed that 63% of participants believe emotional decisions have negatively impacted their portfolios.
A Methodical Approach is Key
While market sentiment plays a role in investment decisions, Kraken emphasized the importance of a calculated strategy.
The exchange recommends leveraging technical analysis and planned trading strategies to navigate the volatile crypto market.
The findings highlight the emotional challenges investors face and the importance of disciplined approaches to maximize returns.
Bitcoin has reached the $100,000 price milestone, marking a historic moment for the cryptocurrency market following a year of remarkable growth.
On Dec. 5, Bitcoin (BTC) broke the psychological $100,000 barrier, just weeks after surpassing the $90,000 mark on Nov. 12, as reported by TradingView.
Shortly after, Bitcoin set a new all-time high of $104,000 at 3:08 a.m. UTC, roughly 90 minutes after breaking the $100,000 threshold.
The surge was fueled by over $31 billion in net inflows from U.S. spot Bitcoin exchange-traded funds (ETFs) and a tightened supply due to Bitcoin’s fourth halving in April.
Donald Trump’s Victory Boosts Bitcoin Rally
Republican Donald Trump’s victory in the U.S. presidential election contributed to Bitcoin’s momentum, alongside speculation of a strategic Bitcoin national reserve and increased corporate adoption led by MicroStrategy’s Michael Saylor.
Additionally, Trump’s Dec. 4 nomination of crypto advocate Paul Atkins to replace Gary Gensler as SEC chair has sparked optimism.
This move could eliminate regulatory barriers that have hindered the crypto sector under the Biden administration.
Trump’s pro-crypto cabinet includes Scott Bessent and Cantor Fitzgerald CEO Howard Lutnick as nominees for Secretary of Treasury and Commerce, respectively, potentially creating the most crypto-friendly administration to date.
Bitcoin Up 126% in 2024
Bitcoin’s value has increased by 126% since Jan. 1, when it traded at $44,000.
Its market capitalization has now reached a record $2 trillion for the first time.
While Bitcoin’s 2024 rally is impressive, it isn’t its most dramatic.
In 2017, Bitcoin soared 1,900%, rising from $1,000 in January to $20,000 in December.
Similarly, between March 2020 and November 2021, it surged 1,250%, climbing from $5,100 to $69,000.
MicroStrategy’s (MSTR) Bitcoin buying spree has generated more than $17 billion in unrealized profits, according to data from MSTR Tracker.
Since 2020, the company has spent over $23 billion acquiring BTC as part of founder Michael Saylor’s unconventional corporate treasury strategy.
This strategy has paid off, with Bitcoin surpassing $100,000 per coin for the first time on Dec. 4.
The company’s BTC treasury is now valued at over $40 billion, according to MSTR Tracker.
Top-Performing Stock in 2024
MicroStrategy’s stock performance has outpaced Bitcoin itself, rising more than 475% year-to-date.
This makes it one of the top-performing stocks in the S&P 500, based on data from Google Finance and Slickcharts.
As of Dec. 5, MSTR has a market capitalization of approximately $92 billion, more than twice the value of its Bitcoin holdings.
Benchmark fintech analyst Mark Palmer raised his price target for MSTR shares from $450 to $650, citing the company’s aggressive buying strategy.
Currently, MSTR trades at about $394 per share, according to Google Finance.
Expanding Bitcoin Holdings
During its Aug. 1 earnings call, MicroStrategy introduced the concept of “Bitcoin yield,” a metric that tracks BTC holdings relative to outstanding shares.
The company committed to a massive three-year BTC buying spree, dubbed the “21/21 Plan,” aiming to raise $21 billion each in equity and debt to fund the effort.
Despite criticism, analysts note that MicroStrategy’s bold strategy has delivered exceptional returns for its shareholders.
“The dramatic impact on the company’s share price has provided ample justification, as its stock has outperformed almost every large company in the US during the past four-plus years,” said Palmer.
With 400,000 BTC as of Dec. 5, MicroStrategy’s Bitcoin-centric approach continues to attract attention and drive significant gains.
President-elect Donald Trump has named Paul Atkins as his choice to lead the U.S. Securities and Exchange Commission (SEC), replacing Gary Gensler.
In a Dec. 4 announcement on Truth Social, Trump highlighted Atkins’ extensive experience, stating:
“Paul is the CEO and Founder of Patomak Global Partners, a risk management consultancy. As Co-Chairman of the Digital Chamber’s Token Alliance since 2017, he has worked on and studied the digital assets industry.”
Trump further praised Atkins’ tenure as SEC Commissioner from 2002 to 2008, saying, “Paul strongly advocated for transparency and protecting investors.”
This nomination fulfills Trump’s campaign promise to appoint a pro-crypto leader to the SEC, a commitment he emphasized during his keynote speech at the Bitcoin 2024 conference in Nashville, Tennessee.
Outgoing SEC Chair Gary Gensler, known for his aggressive stance against cryptocurrencies, resigned on Nov. 21 after months of industry backlash.
Market and Industry Reactions
Gensler’s resignation, coupled with the election results, triggered a surge in crypto markets. Analysts predict that altcoin rallies will extend into 2025 as Atkins assumes office on Jan. 20.
Following Gensler’s exit announcement, several firms, including Bitwise, VanEck, 21Shares, and Canary Capital, filed applications for a Solana ($SOL) exchange-traded fund (ETF).
Katrina Paglia, Chief Legal Officer at Pantera, stated that SEC lawsuits targeting blockchain projects would likely “quietly go away” under new leadership.
Industry Challenges Under Gensler
During his tenure, Gensler’s SEC initiated 104 lawsuits against crypto firms from 2021 to 2023, costing the industry $426 million in legal fees.
The Blockchain Association criticized the lack of clear regulations, writing in October 2024, “The time of law-fare against our industry must end.”
Atkins’ appointment signals a potential shift toward more industry-friendly policies.