Weekly Roundup: SEC, MicroStrategy, Fed Rate Cut & More

Weekly Cryptocurrency News Summary: December 16-22, 2024

SEC Approves Nasdaq’s Bitcoin ETF Options: A Major Step Toward Broader Trading

The U.S. Securities and Exchange Commission (SEC) has approved Nasdaq Inc.’s application to list options on the iShares Bitcoin Trust ETF, a significant step before trading on derivatives tied to the ETF can begin. However, the contracts still require approval from the Options Clearing Corp. and the Commodity Futures Trading Commission. Other exchanges are also seeking approval to list options on the iShares fund and similar Bitcoin ETFs.

According to Bloomberg ETF analyst Eric Balchunas, the SEC’s approval is a major milestone that could boost liquidity and attract more investors. The iShares Bitcoin ETF, trading under the ticker IBIT, is the largest fund directly investing in Bitcoin, with $22.7 billion in assets since its approval earlier this year.

MicroStrategy Acquires 7,420 Bitcoin, Boosts Holdings to Over 252,000 BTC

MicroStrategy, a Nasdaq-listed software company, announced the acquisition of 7,420 Bitcoin for $458.2 million, funded through a debt offering. The purchase took place between September 13 and 19, with Bitcoin bought at an average price of $61,750. This latest acquisition increases the company’s total Bitcoin holdings to 252,220 BTC, valued at nearly $16 billion, acquired at an average price of $39,266.

MicroStrategy’s unique “bitcoin yield” metric rose to 5.1% this quarter, reflecting the percentage change in BTC holdings relative to fully diluted shares. The company, led by Executive Chairman Michael Saylor, remains the largest corporate Bitcoin holder and a pioneer in using Bitcoin as a treasury asset. Other firms, such as Marathon Digital and Metaplanet, have followed suit by issuing debt to accumulate Bitcoin. Despite the purchase, MicroStrategy’s stock dropped 1.5% along with broader market declines.

Bitcoin Poised for Gains Regardless of US Presidential Election Outcome

Bitcoin is experiencing a boost following the Federal Reserve’s rate cut, and analysts believe the upcoming US presidential election could further fuel its rise. Prominent crypto advocates, Tom Lee of Fundstrat and Michael Novogratz of Galaxy Digital, argue that Bitcoin stands to gain whether Donald Trump or Kamala Harris wins the presidency.

Trump, a crypto proponent, has pledged to fire SEC Chair Gary Gensler, a perceived adversary of the crypto industry, which could be bullish for Bitcoin. On the other hand, while Harris hasn’t taken a clear stance on crypto, analysts expect her to adopt a more supportive approach, especially given a dovish economic policy that could benefit risk assets like Bitcoin.

Standard Chartered’s Geoff Kendrick predicts Bitcoin could hit $125,000 if Trump wins and $75,000 with a Harris victory. Analysts agree that Bitcoin’s upward trajectory will likely continue, as it has since its inception in 2009, regardless of political outcomes.

Supreme Court of India’s YouTube Channel Hijacked by Crypto Scammers Promoting XRP

The official YouTube channel of the Supreme Court of India, with over 217,000 subscribers, was hijacked by crypto scammers promoting fraudulent Ripple (XRP) investments. Hackers rebranded the channel on September 20, deleted its content, and hosted a livestream featuring a fake interview with Ripple CEO Brad Garlinghouse, encouraging viewers to invest in a scam promising unrealistic returns. Phishing links in the stream allowed hackers to access victims’ crypto wallets and withdraw funds. YouTube removed the channel for violating its Community Guidelines, marking it as part of a growing trend of crypto-related YouTube hacks, including previous incidents with DidYouKnowGaming and the band Ben&Ben.

Bitcoin Poised for Surge Following Federal Reserve’s Interest Rate Cuts

Bitcoin’s value has surged following the U.S. Federal Reserve’s decision to cut interest rates by half a percentage point, rising from $59,500 to over $63,000, a 6% increase. Analysts forecast further gains, with potential inflows to Bitcoin and Ethereum ETFs, especially in the fourth quarter, which has historically been a strong period for Bitcoin, averaging a 90.33% price increase over the past decade.

Experts like Alice Liu of CoinMarketCap and Steven Lubka of Swan Bitcoin believe the favorable liquidity environment could drive Bitcoin toward a new all-time high. However, some caution remains, as Ruslan Lienkha from YouHodler noted the rate cut could indicate the Federal Reserve is trying to prevent a potential recession, casting uncertainty on the long-term outlook.

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