MicroStrategy, a prominent business intelligence firm, has witnessed a remarkable paper gain of $900 million on its substantial holding of 158,400 Bitcoins.
This significant surge in value has been primarily driven by the growing optimism surrounding the potential approval of spot Bitcoin exchange-traded funds (ETFs).
The company, founded by Michael Saylor, has continued to bolster its Bitcoin reserves, acquiring an additional 6,067 BTC since the third quarter, including a substantial purchase of 155 Bitcoins in October, as outlined in MicroStrategy’s November 1st financial report.
CEO Phong Le expressed the company’s unwavering commitment to its Bitcoin strategy, emphasizing that they have no plans to deviate from this path, especially with the promising prospect of increased institutional adoption on the horizon.
Despite a 3% year-on-year increase in revenue, reaching $129.5 million in the last quarter, MicroStrategy found itself in the red, reporting a net loss of $143.4 million.
This outcome highlights the company’s strong focus on accumulating and holding Bitcoin as a core part of its financial strategy.
During the third quarter (July 1 to Sept. 30), Bitcoin experienced a temporary dip, falling by 11.5% from $30,480 to $26,970.
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MicroStrategy seized this opportunity to increase its Bitcoin holdings by purchasing 6,067 BTC at an average price of $27,590.
In addition to their Bitcoin investments, MicroStrategy is also confident in the positioning of their artificial intelligence-integrated business analytics products.
Their software licenses and subscription services demonstrated impressive growth, rising by 16% and 28% year-over-year, respectively.
Phong Le expressed his belief in MicroStrategy’s ability to benefit from both the positive trends in the Bitcoin market and the expansion of their business intelligence (BI) offerings, stating,
“We believe MicroStrategy is well situated to capitalize on both the tailwinds in Bitcoin and growth in our BI business.”
Following the release of these financial results, MicroStrategy’s stock price (MSTR) surged by 2.7% in after-hours trading, reaching $438 according to Google Finance.
This upward movement underscores the market’s approval of the company’s strategic direction and its bullish stance on Bitcoin.
Invesco and Galaxy’s spot Bitcoin exchange-traded fund (ETF), BTCO, has reached a notable milestone in its application process.
The ETF’s ticker, BTCO, has recently made its appearance on the Depository Trust and Clearing Corporation’s (DTCC) website, a development observed within the past six days. Comparatively, there was no record of BTCO listed on October 25.
However, it is essential to emphasize that the inclusion of a ticker in the “ETF Products” section of the DTCC’s site does not guarantee the eventual approval of the product.
A spokesperson from DTCC clarified that it is a customary practice for the organization to add securities to the NSCC (National Securities Clearing Corporation) security eligibility file “in preparation for the launch of a new ETF to the market.”
The spokesperson further noted that being listed does not serve as an indicator of the outcome of any pending regulatory or approval processes.
The application for the joint spot Bitcoin ETF, managed collaboratively by the global investment firm Invesco and the crypto asset fund Galaxy Digital, was reactivated on June 21.
This decision to renew the application occurred amidst a surge of similar filings for spot Bitcoin ETF products, a trend set in motion by the prominent investment firm BlackRock, which submitted its groundbreaking application for a spot Bitcoin ETF on June 15.
As the BTCO ticker finds its place on the DTCC’s website, it signifies a step forward in the application process, but the final outcome remains uncertain.
The ETF landscape continues to evolve, influenced by a wave of applications and regulatory developments, with industry players eagerly awaiting clarity on the future of these financial instruments.
In October 2023, Bitcoin achieved its highest monthly closing price since May 2022, experiencing a remarkable uptrend throughout the month. Data from Cointelegraph Markets Pro and TradingView verified that Bitcoin bulls successfully maintained their upward momentum into November 1st.
This surge in the cryptocurrency’s value was reminiscent of October’s initial breakout, and it marked the second-best performing month of 2023, with Bitcoin gaining an impressive 28.5%.
This performance only trailed behind January, which had a 39.6% increase.
Renowned trader Bluntz cautioned against underestimating the significance of the current bullish trend, drawing parallels to similar occurrences in October 2020 and April 2019, where Bitcoin entered extended bullish phases.
Moustache, another prominent figure in the crypto trading community, pointed to the TK Crossover indicator, which signaled a rare bull market trigger.
This indicator, derived from the Ichimoku Cloud and involving Tenkan-sen and Kijun-sen trendlines, produced a bull flag at the monthly close, indicating a potential sustained upward trend.
However, on-chain monitoring resource Material Indicators offered a slightly more conservative view, suggesting that while bullish momentum still persisted, it appeared to be weakening compared to the previous month.
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They anticipated a possible retest of the $33,000 level, though it might not occur until after an attempt at $36,000.
Market participants remained vigilant, as a significant macroeconomic event was on the horizon. The United States Federal Reserve was set to announce its interest rate policy in the context of a challenging inflation environment.
Federal Reserve Chair Jerome Powell was also scheduled to deliver a speech and hold a press conference.
Market expectations were leaning toward the Federal Open Market Committee (FOMC) maintaining the current elevated interest rates, with a probability of nearly 98% according to CME Group’s FedWatch Tool.
Prominent trader Crypto Tony weighed in on the potential impact of this announcement on Bitcoin’s price action, predicting increased volatility and market movements as the Fed’s decisions and data were released.
He personally anticipated a pause in interest rate hikes and a subsequent rise in Bitcoin’s price, possibly reaching the $36,000 mark after an initial temporary downturn.
In summary, Bitcoin’s performance in October 2023 was exceptional, with significant gains and indications of a potential sustained bullish trend.
However, the market remained watchful of the upcoming Federal Reserve announcement, which could introduce further volatility and shape the cryptocurrency’s future movements.
Crypto exchange-traded products (ETPs) have experienced a remarkable surge in investor interest, marking their highest weekly inflows in over a year, as reported by CoinShares, a prominent asset management platform.
The data released on October 30 reveals that inflows for the week ending October 27 amounted to a staggering $326 million, dwarfing the previous week’s meager $66 million.
ETPs are investment instruments that offer exposure to the performance of specific assets, with crypto ETPs typically tracking the prices of major cryptocurrencies like Bitcoin and Ether.
Many investors opt for these funds to gain crypto exposure, avoiding the complexities of holding these digital assets directly, as ETP shares can be held in conventional brokerage accounts.
In the world of ETPs, “inflows” occur when the fund’s price rises more rapidly than the underlying asset, prompting the fund to acquire more of the asset, generally considered a bullish indicator.
Conversely, “outflows” transpire when the fund is forced to sell the asset due to declining note or share prices relative to their target, typically seen as bearish.
CoinShares’ latest report underscores the impressive nature of this surge in investor interest, with the $326 million weekly inflow being the most substantial since July 2022, a span of 15 months. Moreover, this marked the fifth consecutive week of positive ETP inflows.
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One potential explanation for this sudden uptick in inflows, according to CoinShares, may be the mounting optimism among investors regarding the potential approval of a spot-based Bitcoin ETF by the U.S. Securities and Exchange Commission (SEC).
Such approval could pave the way for substantial inflows into U.S.-based funds upon acceptance.
Despite the significant rise in inflows, this week’s figures only rank as the 21st largest increase ever recorded, as per CoinShares.
The lion’s share of the weekly inflows went into Bitcoin ETPs, accounting for a remarkable 90% of the total.
Solana’s SOL also benefited from the prevailing market optimism, garnering $24 million in inflows. However, Ether funds experienced an adverse trend, witnessing outflows of $6 million.
Despite numerous applications submitted over the years, the SEC has yet to grant approval for a spot Bitcoin ETP.
Some companies, like Van Eck, recently amended their applications to address the agency’s concerns, while Hashdex engaged with the SEC on October 25 in pursuit of approval for their spot Bitcoin ETP.
The Depository Trust and Clearing Corporation (DTCC) has added the ticker symbol for Invesco and Galaxy’s spot Bitcoin exchange-traded fund (ETF), known as BTCO, to its website, signaling a significant step forward in the application process for these two asset management firms.
This development has taken place within the last six days, as the web archiver Wayback Machine did not display any listing for the BTCO ticker on October 25.
It’s important to note that having a ticker added to the list of “ETF Products” on the DTCC’s website does not guarantee the future approval of the product.
A DTCC spokesperson emphasized that this is a standard practice aimed at preparing for the launch of a new ETF in the market.
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The spokesperson clarified that being listed is not indicative of the outcome of any pending regulatory or approval processes.
The joint spot Bitcoin ETF managed by Invesco, a global investment firm, and Galaxy Digital, a crypto asset fund, had its application reactivated on June 21.
This decision to resubmit the application to the Securities and Exchange Commission (SEC) occurred in response to a surge in similar filings for spot Bitcoin ETF products.
The wave of applications was initiated by BlackRock, a prominent investment giant, which submitted its groundbreaking application for a spot Bitcoin ETF on June 15.
The addition of BTCO to the DTCC’s list indicates the progress made by Invesco and Galaxy Digital in navigating the regulatory landscape for their Bitcoin ETF.
However, it’s essential to understand that regulatory approval remains a separate and crucial step in the process.
The ETF industry is closely watching these developments, as the potential approval of Bitcoin ETFs could open up new opportunities for investors and further legitimize cryptocurrencies as an asset class.
Bulgaria’s oldest football club, Botev Plovdiv FC, has taken a significant step towards cryptocurrency adoption by integrating Bitcoin (BTC) and the Lightning Network into its payment systems, as well as joining the decentralized protocol, Nostr.
This move aims to enhance fan engagement and bring the benefits of digital currencies to the world of sports.
Starting immediately, fans can make peer-to-peer payments using Bitcoin at Botev Plovdiv FC’s fan shops and stands during matches in the top-flight Bulgarian Parva Liga.
The club also has plans to expand Bitcoin payments for ticketing and its online store, making it easier for supporters to interact with the club.
Anton Zingarevich, the club’s president, expressed his excitement about the integration and the potential of the Lightning Network, stating that they envision Bitcoin payments becoming as commonplace as the internet in daily life.
He believes this initiative aligns with the club’s vision and offers unparalleled convenience to fans and stakeholders.
The adoption of Bitcoin was made possible through a partnership with BTCPay Server, a reputable Bitcoin payment processor known for its open-source architecture, secure infrastructure, and low merchant fees.
CryptoDesk.bg, in collaboration with Bitcoinize.com, provided the necessary payment hardware and point-of-sale devices.
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George Manolov, Bitcoin director at Botev Plovdiv FC, emphasized the vast opportunities that Bitcoin offers in terms of technology, social impact, and finance. He expressed enthusiasm for leading innovative initiatives in sports and elevating the club’s stature.
In addition to integrating Bitcoin, the club has revamped its online presence, updating its official website and expanding its English social media channels.
Furthermore, Botev Plovdiv FC has joined Nostr, a decentralized protocol that offers censorship-resistant social media, strengthening its commitment to decentralized technologies.
This move towards Bitcoin and decentralized technologies echoes the pioneering efforts of Real Bedford, a UK-based football club that was the world’s first to adopt Bitcoin.
Peter McCormack, chairman of Real Bedford, commended Botev Plovdiv FC’s decision, emphasizing how Bitcoin adoption can bring success to clubs while raising awareness about the cryptocurrency.
McCormack, who integrated Bitcoin at Real Bedford in 2021, believes that Bitcoin’s unique characteristics act as a “cheat code for life.”
He anticipates more football and sports teams to follow suit and adopt the “cheat code” strategy to build their clubs on solid financial foundations.
To celebrate their cryptocurrency adoption, Botev Plovdiv FC allowed fans attending their home game against Lokomotiv Plovdiv to pay using Bitcoin and the Lightning Network.
This announcement, made on Bitcoin white paper day, further underscores the club’s support for Bitcoin and its commitment to embracing innovation in the world of sports.
According to Mark Nuvelstijn, the CEO of Bitvavo, the looming Bitcoin mining reward halving in 2024 may not necessarily trigger a supply shock in the market due to the dynamics of supply and demand.
Nuvelstijn, who co-founded the Netherlands-based cryptocurrency exchange, shared his insights on the state of the Bitcoin market during the European Blockchain Convention in Barcelona.
Nuvelstijn’s perspective is grounded in the idea that as demand for Bitcoin grows, so does its price. He noted that this price increase will continue until it reaches equilibrium with demand.
Consequently, he is optimistic that exchanges like Bitvavo will be able to meet the demands of traders, as they act as intermediaries matching buy and sell orders.
In discussing Bitcoin exchange-traded fund (ETF) applications filed in the United States, Nuvelstijn highlighted the increasing attention and interest in the cryptocurrency market.
He pointed out that the recent substantial surge in the Bitcoin price, up by 20% to 30% over two weeks, is indicative of this growing interest. Bitvavo has also witnessed a surge in web traffic, customer visits, and app usage, resulting in an influx of new customers.
Nevertheless, the CEO emphasized that this is still a pre-event, as the ETF approvals have not materialized yet.
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Bitvavo, primarily focused on the Netherlands and Belgium, has plans for expansion into other European jurisdictions such as France, Spain, and Italy.
Nuvelstijn anticipates that the European Union’s Markets in Crypto-Assets (MiCA) regulation will play a pivotal role in advancing market maturity and facilitating cross-border business operations.
MiCA is expected to harmonize regulations across European countries, simplifying the licensing process and promoting a more conducive environment for crypto and financial services.
Additionally, Nuvelstijn sees MiCA as a catalyst for greater integration between traditional financial services and cryptocurrency companies, predicting a blending of business models in the financial sector.
Furthermore, a report from a Standard Chartered analyst in July 2023 suggests that the rising institutional demand for Bitcoin may drive its price to approximately $120,000 by the end of the year.
This increase is attributed to enhanced mining profitability, reducing the necessity to sell newly mined coins.
As Bitcoin’s ecosystem continues to evolve, the industry remains dynamic, with market participants like Bitvavo adapting to meet the evolving demands of the crypto market.
Salvadoran President Nayib Bukele has taken the bold step of filing paperwork for his reelection bid in the upcoming 2024 presidential election, slated for February.
Bukele, known for his advocacy of Bitcoin, garnered strong public support when his party officially nominated him for a second term on October 26.
Addressing a large gathering of Salvadorans, he declared, “Five more [years], five more and not one step back. We need five years to continue improving our country.”
Bukele ascended to power in 2019, marking a historic shift away from the two-party dominance that had lasted for three decades between the Nationalist Republican Alliance and the Farabundo Martí National Liberation Front.
However, despite his popularity among the local populace, critics, including Salvadoran lawyer Alfonso Fajardo, argue that the country’s constitution forbids consecutive presidential terms.
Fajardo pointed out, “Nayib Bukele is running for reelection in El Salvador despite the fact that it’s prohibited in 7 articles of the constitution.
The constitution was drafted after our peace accords, after our bloody civil war. This is unconstitutional.”
Notably, in September 2021, El Salvador’s Supreme Court ruled in favor of presidential consecutive reelections, thereby clearing the way for Bukele’s candidacy. Bukele’s party, New Ideas, boasts the support of a significant 70% of the country’s voting population, dwarfing its closest competitor, which only received 4% of the total votes.
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Despite opposition, including a lawsuit from one of New Ideas’ competitors, FMNLB, alleging the unconstitutionality of Bukele’s Bitcoin adoption program, the initiative proceeded as planned.
El Salvador officially made Bitcoin legal tender three months later in September 2021.
The Bukele administration has also embraced tech-friendly policies, such as the elimination of taxes on technological innovations, aimed at bolstering the nation’s economy.
Gabor Gurbacs, a strategy advisor at VanEck, even speculated that El Salvador has the potential to become the “Singapore of the Americas.”
Bukele’s popularity has been bolstered by his resolute crackdown on MS-13, a transnational gang that had contributed to El Salvador’s status as the country with the highest homicide rates in the world six years ago.
Thanks to these efforts, El Salvador’s homicide rate has plummeted by a remarkable 92.6% since its peak of 106 per 100,000 inhabitants in 2015, now standing at just 7.8 in 2022.
The nation now boasts one of the lowest crime rates in Latin America.
However, it’s crucial to note that Bukele’s approach has not been without controversy, as the United Nations and other critics argue that El Salvador violated human rights laws by imprisoning 65,000 individuals without affording them legal rights to defend themselves.
With the presidential election scheduled for February 4, 2024, El Salvador is poised for a pivotal moment in its political landscape as Nayib Bukele seeks to continue his transformative leadership.
Institutional interest in Bitcoin investment vehicles has surged amid growing anticipation of potential regulatory changes in the United States.
Data from sources such as Bloomberg reveals that Bitcoin exchange-traded funds (ETFs) and similar instruments are experiencing near-record weekly inflows.
The prospect of the United States permitting a Bitcoin spot price-based ETF has not only influenced the price of Bitcoin but has also positively impacted the broader cryptocurrency ecosystem.
Alongside cryptocurrency exchanges and mining companies, institutional investment options that have faced challenges in recent times are witnessing a resurgence in demand.
According to Eric Balchunas, a senior ETF analyst at Bloomberg, at least two well-known investment options experienced significant trading volume during the week ending October 27.
One of them was the ProShares Bitcoin Strategy ETF (BITO), the first futures-based ETF to receive regulatory approval in the U.S. in 2021.
BITO saw a trading volume of $1.7 billion during the week, marking its second-highest weekly volume since its launch.
Another noteworthy performer was the Grayscale Bitcoin Trust (GBTC), which saw a trading volume of $800 million.
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This increased activity helped narrow the discount of GBTC shares to the Bitcoin spot price, reaching its lowest level in two years.
William Clemente, co-founder of crypto research firm Reflexivity, commented that ETF trading is now “back in full steam,” highlighting the renewed interest in these investment vehicles.
GBTC has experienced a remarkable resurgence in recent months, even before Bitcoin’s 15% price increase in the previous week. Legal victories in the journey towards converting GBTC into a spot ETF provided momentum for this revival.
Currently, Grayscale’s product trades with an implied share price that is just 13.1% below the BTC spot price, according to data from CoinGlass.
Despite the optimism surrounding GBTC, investment management firm ARK Invest has reduced its holdings of GBTC in line with its share price gains.
ARK Invest is also planning to launch a Bitcoin spot ETF, and GBTC currently accounts for 10.24% of its ARK Next Generation Internet ETF—a notable change since November 2022.
In conclusion, the potential for regulatory changes in the United States regarding Bitcoin investment vehicles has sparked a surge in institutional interest and trading activity.
This trend, along with the narrowing discount of GBTC shares to the Bitcoin spot price, suggests a growing confidence in cryptocurrency investment options among institutional investors.
Bitcoin (BTC) has achieved remarkable milestones by reaching all-time highs against several inflation-ridden fiat currencies in a span of just 30 hours from October 23 to 24.
Notably, these currencies include the Argentine peso, Nigerian naira, Turkish lira, Laotian kip, and the Egyptian pound.
It’s important to emphasize that this surge in Bitcoin’s value is primarily attributed to the continuous devaluation of these national currencies, which has been further exacerbated by Bitcoin’s recent 16% price surge.
The situation for the naira and lira is particularly dire, as they plummeted to their lowest exchange rates against the United States dollar on October 24 and 25, respectively.
The Argentine peso is also not faring well, currently resting at a mere 0.85% above its all-time low against the U.S. dollar.
According to data from the International Monetary Fund (IMF), the Venezuelan bolivar leads the world with an alarming annual inflation rate of 360%, followed closely by the Zimbabwean dollar at 314%, the Sudanese pound at 256%, and the Argentine peso at 122%.
The Turkish lira and Nigerian naira also feature on this distressing list, ranking sixth and fifteenth, respectively, with annual inflation rates of 51% and 25%.
Cryptocurrency enthusiasts have long considered digital assets like Bitcoin and stablecoins as effective hedges against rampant inflation, and the recent data only strengthens this narrative.
Notably, Nigeria, Turkey, and Argentina are among the countries with high cryptocurrency adoption rates globally, as per a September 12 report by Chainalysis.
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However, it’s worth mentioning that these countries’ governments have not always been aligned with the cryptocurrency industry.
Nigeria, for instance, initially banned local banks from providing services to cryptocurrency exchanges in February 2021.
Yet, progress has been made, with Nigeria signaling its intention in December 2022 to pass a bill recognizing cryptocurrencies as “capital for investment,” citing the need to align with global practices.
In Turkey, despite a strong interest in cryptocurrencies among the populace, the central bank banned the use of cryptocurrencies for payments of goods and services in April 2021.
Simultaneously, they have been actively exploring the creation of a central bank digital currency (CBDC) to digitize the Turkish lira.
Meanwhile, Argentina’s inflation crisis remains a key concern, with a presidential election scheduled for November. The presidential candidates, Javier Milei and Sergi Massa, have differing approaches.
Massa, currently the country’s minister of economy, aims to launch a CBDC swiftly to address the persistent inflation problem and intends to keep the U.S. dollar away from Argentinians.
In contrast, Milei advocates for adopting the U.S. dollar and abolishing Argentina’s central bank as part of his vision for economic reform. The election outcome will likely shape the country’s economic trajectory significantly.