Mini Program: Daily Cryptocurrency Dynamics Summary
1. Data: Bitcoin balance on exchanges continues to decline to 2.312 million
According to HODL15Capital statistics, the balance of Bitcoin on exchanges continues to decline, and the total balance of major exchanges is currently about 2.312 million BTC. In the past month, 116,200 BTC have been reduced, and since the beginning of 2024, a total of 315,800 BTC have been reduced, a decrease of 12.8%. Specifically, Coinbase has the largest balance reduction, with 38,311 BTC outflows in the past 30 days and a total outflow of 281,840 BTC since the beginning of the year; Binance has reduced 29,369 BTC in the past 30 days and 6,860 BTC outflows throughout the year. It is worth noting that OKX is the only exchange that has seen growth, with an increase of 33,834 BTC since the beginning of the year.
2. The Trump administration may allow more crypto companies to go public
The Trump administration may allow more cryptocurrency companies to go public, and the regulatory environment may change in the future, providing crypto companies with more financing channels and development opportunities. It is reported that the initial public offering market may soon be open to stablecoin provider Circle Internet Financial, trading platform Kraken and other companies that have expressed their desire to go public.
3. Analysis: If MicroStrategy is included in the QQQ ETF, it is essentially equivalent to "adding more Bitcoin to the index"
Jeff Park, head of alpha strategy at Bitwise, said that if MicroStrategy is included in the Nasdaq 100 Index and the $312 billion Invesco QQQ ETF (QQQ), it would essentially be equivalent to "adding more Bitcoin to the index."
4. CryptoQuant: Bitcoin exchange reserves fall to lowest level in years
According to The Block, Bitcoin exchange reserves have plummeted to their lowest level in years, indicating that investors' confidence in long-term holding of Bitcoin is growing. CryptoQuant data shows that more than 171,000 Bitcoins have been withdrawn from major crypto exchanges since Trump won the US election on November 5. This trend has reduced the liquid supply of Bitcoin, indicating that investors are transferring their holdings to cold wallets, which may be part of their long-term strategy. Exchange reserves have been declining since 2021, reflecting a broader long-term holding trend. According to CryptoQuant, exchange reserves were about 3.2 million Bitcoins in October 2021 and have now fallen to 2.46 million, the lowest level in years. Similarly, data from Glassnode shows that its illiquid supply indicator (that is, Bitcoins held by long-term investors and not actively traded) has increased by 185,000 in the past 30 days to a record 14.8 million Bitcoins. This accounts for about 75% of the current circulating supply (about 19.79 million).
5. Mining company Foundry cut about 60% of its employees, reducing the total number of employees from 250 to about 80 to 90
According to foreign media reports, Bitcoin mining company Foundry is undergoing business restructuring and has laid off about 60% of its employees. The layoffs cover both the US and international teams, reducing the total number of employees from 250 to about 80 to 90. Foundry said the move is aimed at focusing on core businesses, including continuing to operate the world's largest Bitcoin mining pool (accounting for about 30% of global computing power) and supporting the development of new businesses of its parent company Digital Currency Group (DCG), such as the recently launched subsidiary Yuma. Although Foundry's self-operated mining business is expected to generate $80 million in revenue this year, its layoffs are seen as part of DCG's overall restructuring. DCG and its subsidiaries were severely hit after the collapse of FTX. At the same time, Foundry plans to split its self-operated mining business into an independent subsidiary in order to attract more capital and promote longer-term development.
6. Source: Trump has nominated Paul Atkins, who supports encryption, as chairman of the US SEC
According to Unchained Crypto, US President-elect Donald Trump has nominated Paul Atkins, who supports the crypto industry, as chairman of the U.S. Securities and Exchange Commission (SEC). It is reported that Atkins is the first libertarian to serve as an SEC commissioner during the Bush administration and has long supported the crypto industry. Sources said that Trump has contacted Atkins, but he has yet to formally accept the nomination. As a replacement, Atkins needs to be confirmed by the Senate, otherwise Trump may directly appoint him during the Senate recess. Atkins co-founded Token Alliance in 2017, focusing on cryptocurrency policy and providing compliance consulting to digital financial companies for a long time. People familiar with Atkins's thinking said that the position is not attractive to him because a lot of work needs to be done to turn around the bloated agency and because it will require him to resign from his existing business position.
7. Research: MicroStrategy's asset value will only be lower than its liabilities if Bitcoin falls to $18,826
According to Cointelegraph, capital consultant Jeff Walton released research showing that MicroStrategy can ignore the bear market price of the Bitcoin market plummeting to $20,000, and the company’s Bitcoin assets will not be significantly affected. Research shows that although the price of Bitcoin could fall by 80%, MicroStrategy would still be able to withstand this price collapse. Although MicroStrategy’s Bitcoin exposure is higher than ever and the company continues to buy more Bitcoin, analysis suggests that even a long-term price correction will not have a significant impact on MicroStrategy and CEO Michael Saylor. question. Walton calculated that MicroStrategy’s assets would fall below its liabilities only if the price of Bitcoin fell to $18,826. The practice of adding Bitcoin risk to corporate balance sheets has been criticized. Moreover, Bitcoin has indeed experienced an 80% retracement before. For example, between November 2021 and November 2022, BTC/USD fell from $69,000 to as low as $15,600. For Walton, however, the arguments against corporate adoption of Bitcoin have little logic.
8. Coinbase CEO: The US government should not sell Bitcoin. About 12.5% of Coinbase's assets are Bitcoin.
Coinbase CEO Brian Armstrong said on social media that the U.S. government's sale of Bitcoin was a "major strategic mistake" and believed that it should not sell its Bitcoin holdings. In addition, he revealed that about 25% of Coinbase's net asset value (excluding debt) is cryptocurrencies, of which about half is Bitcoin, accounting for 12.5% of total net asset value. He pointed out that since most of Coinbase's liabilities are still denominated in US dollars, it is currently difficult to bear higher Bitcoin allocation risks, but is open to increasing the proportion of holdings and welcomes community discussions on this.
9. Bitcoin mining company MARA plans to acquire a wind farm in Texas, USA to mine Bitcoin
According to Bloomberg, according to documents submitted by Bitcoin mining company MARA Holdings Inc. to the Federal Energy Regulatory Commission, MARA acquired the North Texas wind farm in Hansford County from a joint venture between National Grid Plc and the Washington State Investment Commission. The transaction price has not been disclosed. MARA plans to use the facility's 114 megawatts of power to mine Bitcoin when the wind is windy and stop operations when there is no wind. "Instead of moving power to where the market is, we can move the market to where the power is," said Fred Thiel, chairman and CEO of MARA, in an interview. He also added that the facility could operate about 30% of the time, eliminating dependence on the power grid. Thiel said that MARA's plan to mine only when the wind is blowing makes economic sense because its mine will accommodate the previous generation of mining machines that would otherwise be retired; the sale is expected to be completed in the first quarter of 2025; he is interested in purchasing more wind farms over time.
10. French lawmakers propose to treat crypto assets such as Bitcoin as unproductive property and tax their unrealized gains
According to Bitcoin Archive, French Senator Sylvie Vermeillet proposed to classify Bitcoin and other digital assets as non-productive property in the 2025 budget, similar to real estate and luxury assets, and tax their unrealized asset gains. French Finance Minister Laurent Saint-Martin supports this move, believing that it is unfair to exempt Bitcoin from tax while taxing real economic assets.
11. South Korea plans to allow universities and local governments to cash out cryptocurrency donations next year
Starting next year, institutions such as universities and local governments in South Korea may be able to cash in cryptocurrency donations, according to hankyung. This is because the South Korean government has developed a plan to gradually allow companies to open fiat currency accounts for virtual assets, which has been restricted before. The Financial Services Commission (FSC) of South Korea plans to release a "Roadmap for Allowing Companies to Open Virtual Assets Fiat Currency Accounts" (tentative name) by the end of this month, according to reports. Currently, to trade won on Korean crypto exchanges, it is necessary to open a real-name account associated with the transaction at a commercial bank. Although there is no explicit regulation prohibiting companies from opening such accounts, banks have been restricting the issuance of accounts based on the authorities' "Anti-Money Laundering Guidelines." The financial authorities plan to first allow the opening of real-name accounts for non-profit legal entities such as central government departments, local governments, public institutions, and universities (Phase 1). The second phase plans to allow the opening of fiat currency accounts for related business parties such as cryptocurrency exchanges. The government said it will consider allowing general companies (Phase 3) and financial companies (Phase 4 and 5) to open legal person accounts in the medium and long term.
12. South Korea's 5060s group is accelerating its entry into the crypto market, and bank deposits have decreased by 27 trillion won in 5 months
Affected by the "Trump market", the heat of the Korean crypto market continues to heat up, and people born in the 50s and 60s have invested part of their pension funds in crypto assets. According to data, the current deposit balance of major banks in South Korea has decreased by 27 trillion won in 5 months. At the same time, the number of user accounts over 60 years old on major domestic exchanges Upbit and Bithumb increased by 30.4% from the end of 2021, and the average investment amount reached 8.72 million won, the highest among all age groups. The price of Bitcoin rose by 40% in a single month, and the increase of XRP was more than 5 times. In addition, the postponement of crypto income tax for two years further stimulated the investment boom.
Article forwarded from: Jinshi Data
