Incoming President Donald Trump nominates Scott Bessent of hedge fund Key Square Group as the next U.S. Treasury Secretary, leading to a rally in global stock markets. The Dow Jones index rose by 440 points, reaching a new historical high, while the dollar fell and U.S. bond yields dropped significantly. MicroStrategy (MSTR), which claims to be a Bitcoin development company, bought 55,500 Bitcoins, but Bitcoin fell to 93K last night, with market funds shifting to Ethereum, which stabilized at $3,400, making it the only cryptocurrency among the top ten by market cap to rise yesterday.
(Hedge fund president Scott Bessent appointed as U.S. Treasury Secretary, will stablecoin regulation be in sight?)
MicroStrategy buys Bitcoin again
MicroStrategy (MSTR), which claims to be a Bitcoin development company, announced last night that it bought 55,500 Bitcoins for $5.4 billion, with an average cost of $97,862. As of November 24, 2024, MicroStrategy has acquired 386,700 Bitcoins at an approximate cost of $21.9 billion, with an average cost of $56,761.
Founder Michael Saylor boldly stated: Since the beginning of the year, MSTR has achieved a 59.3% BTC yield, providing shareholders with a net gain of approximately 112,125 BTC, averaging about 341 BTC per day. Based on a Bitcoin price of $100,000, this translates to approximately $11.2 billion for shareholders year-to-date, or about $34.1 million in daily gains.
Bitcoin dropped to 93K
After MicroStrategy announced its Bitcoin purchase, BTC plummeted, reaching a low of $92,600 this morning, with a 24-hour decline of over 4%.
Funds are shifting to Ethereum, with ETH stabilizing at $3,400
Wintermute analysts indicate that capital is shifting from Bitcoin to Ethereum, with derivative market activity showing increasing confidence in ETH's recent rise. ETH surged to $3,546 last night, making it the only cryptocurrency among the top ten by market cap to rise yesterday.
As the open interest contracts on exchanges reached a historical high over the weekend, the capital flow over the past few trading days has favored Ethereum.
This week's Thanksgiving holiday may lead to intensified market volatility due to reduced trading volume
This week's focus is on Wednesday's Personal Consumption Expenditures (PCE) price index, the Fed's preferred inflation indicator, with economists predicting a 2.3% year-over-year increase in the October PCE index. U.S. stocks will be closed on Thursday for the Thanksgiving holiday, with early closing on Friday, and trading volume is expected to be light this week. However, in a reduced volume scenario, market volatility could intensify, and investors should be aware of trading risks.
This article discusses MicroStrategy buying Bitcoin again, BTC dropping to 93K, and market funds shifting to Ethereum, originally appeared on Chain News ABMedia.
