Bitcoin Reclaims $71,000 on Whale and ETF Demand
Bitcoin Reclaims $71,000 on Whale and ETF Demand
Bitcoin reclaimed $71,000 in Asian trading hours, driven by huge whale activity on Binance and a 47,000 BTC inflow into ETFs over two weeks. The price surge also liquidated over $143 million in short positions, with $73 million from BTC shorts, intensifying the upward trend. Traders are betting on a bullish market, anticipating favorable conditions from the upcoming US election.
Major cryptos followed Bitcoin’s rise, with meme coins like Dogecoin and Shiba Inu up 15% and 8%, respectively. The top 20 coins by market cap rose 3.3%, and crypto options indicate strong expectations for further highs, with bets placed on Bitcoin reaching $75,000 by November 8. Analysts note market sentiment suggests a price rally regardless of the election outcome.
Another common forecast is that, while a Trump presidency is generally bullish for Bitcoin, an election victory is being priced in right now, and we can expect a short dump after the eventual win.
MicroStrategy Stock Surges 250%, Leveraging Bitcoin Holdings
MicroStrategy’s stock (MSTR) has surged nearly 250% this year, outperforming Bitcoin as investors seek equity-based crypto exposure. The business intelligence firm holds over 252,220 BTC, valued at over $17 billion. While BTC’s 2024 gains stand at 60%, MicroStrategy’s debt-fueled Bitcoin purchases have made MSTR stock a powerful proxy for the cryptocurrency.
CEO Michael Saylor’s strategy positioned MicroStrategy as a unique player at the intersection of software and crypto markets. MSTR’s performance showcases how the firm’s approach allows stockholders to indirectly benefit from Bitcoin’s gains. The firm’s substantial Bitcoin treasury holdings, financed by strategic debt, underscore its commitment to cryptocurrency as a reserve asset.
Phantom Wallet Faced Downtime Amid GRASS Token Airdrop
Phantom, one of the best Solana wallets, experienced downtime on Monday, showing inaccurate balances for some users amid high demand from the GRASS airdrop. The outage, starting around 13:00 UTC and resolved by 16:40 UTC, led Phantom to assure users their funds were safe. Issues persisted on the status page, though the browser extension and mobile app remained operational.
The downtime occurred as Solana-based app Grass distributed 10% of its GRASS token supply to users. Phantom’s X account acknowledged ongoing efforts to restore full functionality and advised users to ignore simulation errors. This isn’t Phantom’s first downtime in 2024, with similar issues in February and August swiftly addressed by the team.
Crypto Groups Support Token Airdrop Suit Against SEC
Speaking of airdrops, The Blockchain Association and Crypto Council for Innovation filed a 30-page brief supporting Beba’s lawsuit against the SEC over token airdrops, arguing they don’t qualify as securities. The brief claims that under the Howey Test, airdrops involve no “investment of money” and therefore shouldn’t be classified as securities, pushing for regulatory clarity.
DeFi Education Fund argues that free tokens don’t meet the “investment contract” criteria of securities. The lawsuit reflects broader concerns that the SEC is “regulating by enforcement” and not setting clear guidelines. This approach discourages innovation and misinterprets token distributions like airdrops, which lack monetary investment and “common enterprise” aspects.
Data of the Day
According to CoinShares, digital asset investment products globally attracted $901 million in net inflows last week, mainly driven by Bitcoin-based funds and increased Republican poll support. October’s inflows reached $3.36 billion, representing 12% of assets under management, making it the fourth-highest month on record.
Bitcoin ETFs, particularly BlackRock’s IBIT, led with $997.6 million in inflows, while US crypto products brought in $906 million overall. Funds in Sweden, Canada, Brazil, and Hong Kong saw a combined $29.1 million in outflows, contrasting with strong US demand. Ethereum-based products experienced $34.7 million in weekly outflows, hitting a low ETH/BTC ratio not seen since April 2021.
More Breaking News
- Ethereum’s infrastructure limitations are pushing users and capital to Layer 2 networks and competing blockchains like Solana, analysts note.
- Donald Trump’s World Liberty Financial plans to develop a stablecoin following a $14 million initial token sale, sources reveal.
- Robinhood announced it will offer US presidential election event contracts, catering to retail demand for speculative betting, thanks to the success of Polymarket.
- Hong Kong expects to license even more crypto exchanges by year-end and plans tax incentives to boost crypto investment, officials shared.
- Japanese investment firm Metaplanet boosted its Bitcoin holdings to over 1,000 BTC, following a $10 million purchase that lifted shares 7.18%.
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