Market Wrap: Monday, November 25, 2024 

As we kick off the last week of November, Bitcoin is once again trying to test the elusive 100k mark, after falling short of hitting six figures last week. Given the volume of news and events over the past few weeks, I thought it would be useful to summarize the main sources driving the inflows that helped push Bitcoin to its current levels.  

Bitcoin ETFs saw record breaking inflows in the days following the US election. On November 7th ETFs notched $1.36bn in inflows, breaking the previous record inflow of $1.04bn set on March 12, 2024. Currently, the total assets under management (AUM) for BTC ETFs exceeds $108bn. Since November 6th, ETFs have accumulated over $7.3bn of inflows, with $3.35bn occurring last week alone.

Michael Saylor’s Microstrategy bought $4.6bn worth of Bitcoin at an average price of $88,627 per BTC, between November 11-17.  This acquisition was funded by proceeds from a share sale that closed on October 30th. Saylor also announced that the firm has acquired an additional $5.4bn of Bitcoin at an average price of $97,862 over the past week. The company now holds 386,700 Bitcoin acquired for $21.9bn, at an average price of $56,761 per coin.

MARA Holdings, a Bitcoin mining company, recently completed a $1bn convertible note offering, with the purpose of using the proceeds to acquire more Bitcoin. Currently, MARA holds approximately 27,562 BTC valued at approximately $2.6bn and is fully committed to a Bitcoin treasury policy. View the press release here. 

Bitcoin futures open interest has soared this month, signaling an increase in leveraged positioning through futures contracts. Similarly, options open interest has increased. With increased leverage comes an increased risk of positioning squeezes and liquidations, which exceeded half a billion dollars over the weekend.

Image source: Coinglass

New nominees in the Trump administration are contributing to increased interest in cryptocurrency. Recently, Scott Bessent, a veteran hedge fund manager with a pro-crypto stance, was nominated for Treasury Secretary. This follows the resignation of Gary Gensler’s from the SEC, and nominations of Robert F. Kennedy Jr. for Department of Health and Human Services Secretary and Cantor Fitzgerald CEO Howard Lutnik for the Department of Commerce. Meanwhile, the newly established Department of Governmental Efficiency (D.O.G.E.) helped DOGE rise to 43 cents last week. As we await the SEC nominations, it is expected that the focus will remain on nominees supportive of digital assets.

The Macro Week Ahead

This week, investors will be closely observing the FOMC minutes for insights into the Fed’s perspective while also monitoring the slew of economic data to be released from both the US and Europe.  

Financial Advice Disclaimer: Nothing in this article constitutes professional or financial advice, performance data or any recommendation that any specific cryptocurrency, portfolio, index, investment product, transaction or investment strategy is suitable for any specific person. You assume the sole responsibility of evaluating the merits and risks associated with all financial decisions and should seek the advice of a registered financial advisor when in doubt.