On Monday (December 9), after Bitcoin rebounded above $100,000, the price experienced sharp fluctuations and dropped back. The U.S. Treasury rarely acknowledged that Bitcoin is primarily used for value storage, while Amazon shareholders proposed including Bitcoin on the balance sheet to hedge against inflation. This aligns with the trend of companies, including Microsoft and Tesla, exploring Bitcoin as an asset.
According to Watcher.Guru: "The latest news is that the U.S. Treasury compared Bitcoin to digital gold, mentioning that Bitcoin's primary use seems to be as a store of value, also known as digital gold."
Forbes reported that the U.S. Treasury referred to Bitcoin as "digital gold" in its report. The report's authors stated: "Bitcoin's primary use seems to be as a store of value in the decentralized finance (DeFi) world, also known as digital gold. So far, speculative interest seems to have played a prominent role in the growth of the digital token."
Earlier last week, Federal Reserve Chairman Powell stated at the Deal Book conference (New York Times) that Bitcoin could rival gold.
"It's like gold, only it's virtual," Powell said. "People don't see it as a means of payment or a store of value. It's highly volatile; it's not a competitor to the dollar but rather a competitor to gold."
Dennis Porter, CEO of the Satoshi Act Fund, posted: "The U.S. Treasury just declared Bitcoin as digital gold, but some still think $100,000 for Bitcoin is too expensive."
His fund has helped draft several state-level Bitcoin and crypto rights bills. He added: "Our price will be higher." He was referring to Bitcoin's price.
Amazon shareholders are calling on the board to consider investing in Bitcoin and to contemplate adding Bitcoin to its balance sheet as a hedge against inflation. This aligns with the trend of companies, including Microsoft and Tesla, exploring Bitcoin as an asset.
CoinTelegraph noted that the National Center for Public Policy Research, a Washington D.C.-based think tank advocating for free markets, has submitted a shareholder proposal to Amazon, urging the company to allocate at least 5% of its assets to Bitcoin to protect the value of its financial assets, even citing the success of MicroStrategy's Bitcoin financial strategy.
According to the proposal, the Consumer Price Index (CPI), which is used to measure inflation (currently at 4.95%), is a "very poor indicator" of real currency depreciation. The authors believe the real inflation rate could be twice the reported CPI data.
The content pointed out that this significantly erodes Amazon's $88 billion in cash and short-term cash equivalents. To protect shareholder value, Bitcoin should be used to hedge this risk. The National Center for Public Policy Research stated: "As of December 6, 2024, the price of Bitcoin has risen 131% from the previous year, averaging outperforming corporate bonds by 126%. Over the past five years, Bitcoin's price has risen 1246%, averaging outperforming corporate bonds by 1242%."
MicroStrategy and its founder Michael Saylor have promoted a corporate Bitcoin financial strategy, which is increasingly favored by corporations and pension funds.
According to MicroStrategy Tracker data, the Bitcoin held by the company is currently worth over $40 billion—making MicroStrategy's profit approximately $17 billion.
Mining company MARA (formerly Marathon Digital) followed MicroStrategy's example by completing a $1 billion convertible note issuance at a 0% interest rate in November 2024. MARA used these funds to purchase 6,474 Bitcoins for its corporate treasury.
AI company Genius Group also announced in November that it converted its treasury assets into Bitcoin, purchasing 110 Bitcoins at an average price of about $90,932 each, beginning its Bitcoin reserve appreciation.
Bitcoin Technical Analysis
CoinTelegraph pointed out that Bitcoin faces resistance near the psychological key level of $100,000, but bulls are not in a hurry to exit.
The tight consolidation near $100,000 has improved the prospects for an upward breakout. If buyers push the price above $104,088, bullish momentum could strengthen, and Bitcoin could soar to $113,331 and then to $125,000.
The 20-day moving average at $95,285 is a key short-term support level to watch. If this level is breached, it would indicate that bulls are eager to take profits. Bitcoin could fall to $90,000 and then to the 50-day simple moving average at $84,110.
The currency pair has been trading above the moving average, indicating a slight bullish advantage. An upward trend is expected to face strong resistance in the $101,900 to $104,088 range. A breakout above this area could propel Bitcoin to $113,331.
Conversely, falling and closing below the moving average may tempt short-term bulls to take profits. This could pull the price down to $90,000, which may attract buyers. If the price rebounds from $90,000 and rises above the moving average, it would signal the formation of a range. Bitcoin may trade between $90,000 and $104,088 for some time.