- December 2, 2023
- Posted by: [email protected]
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Bitcoin (BTC) has recently experienced a surge in value, surpassing $38,000 with a more than 0.50% increase, driven partly by strategic moves from MicroStrategy to fortify its Bitcoin reserves. The software analytics firm engaged in a substantial $750 million stock offering and acquired $593 million worth of bitcoin, increasing its holdings to 174,530 bitcoins. Since August 2020, under the guidance of CEO Michael Saylor, MicroStrategy has been consistently accumulating Bitcoin as its primary reserve asset, with current Bitcoin assets valued at approximately $6.6 billion. The recent acquisition raised their average purchase price to $30,252.
Simultaneously, the cryptocurrency landscape is abuzz with activity as Majority Whip Tom Emmer advocates for enhanced stablecoin monitoring while expressing reservations about Central Bank Digital Currencies (CBDCs) as potential tools for surveillance. Additionally, BlackRock has proposed a “Revised In-Kind Model” for the Spot Bitcoin ETF, aiming to address SEC concerns and potentially secure approval. The SEC’s recent actions have injected optimism into the market, heightening expectations for the launch of a Spot Bitcoin ETF.
MicroStrategy’s strategic moves have positively impacted Bitcoin’s price, signaling ongoing institutional interest and investment in cryptocurrencies. Despite a modest decrease of 0.82% in MicroStrategy’s shares (NASDAQ:MSTR) following the announcement, the company has already realized a substantial profit of around $900 million on its Bitcoin investments, particularly when prices exceeded the $35K mark.
Tom Emmer’s strong opposition to CBDCs and his efforts to push legislation against government-issued CBDCs add a layer of significance to the cryptocurrency market. His resistance to stricter Treasury regulations over stablecoins introduces uncertainty, potentially influencing Bitcoin’s price positively.
The world’s largest asset manager, BlackRock, recently engaged with the U.S. Securities and Exchange Commission (SEC) to discuss its application for a spot Bitcoin ETF. BlackRock proposed a “revised in-kind” model, also known as a “prepay model,” to mitigate risks and manage balance sheet implications during redemption flows. Despite the SEC’s preference for the cash model, BlackRock continues to advocate for the in-kind creation model, contributing to the regulatory uncertainty.
The SEC’s initiation of public comment periods for spot Bitcoin ETF applications from Franklin Templeton and Hashdex further complicates the regulatory landscape. Analysts anticipate potential approvals by the deadline of January 10, 2024, contributing to the current uptick in Bitcoin’s price.
Bitcoin’s current trading at approximately $38,150 presents a reserved yet positive outlook. The 4-hour chart indicates stability, with key resistance at $38,249 and pivotal support at $37,572. The Relative Strength Index (RSI) stands at a moderately bullish 59.24, suggesting growth potential without signaling overbought conditions. The upward channel pattern visible on the chart supports this bullish sentiment, indicating sustained buying pressure. Traders may anticipate a test of the $38,249 resistance, with further resistance levels at $39,070 and $39,801 if momentum continues. The near-term outlook remains optimistic as long as Bitcoin remains above the pivot point.
