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Market Snapshot
Key Headlines
Bitcoin kicked off January roaring past $45,000—its loftiest peak in 21 months—but historically, January hasn’t been a friend to the flagship crypto. Data pulled from TradingView reveals that in the last half-decade, Bitcoin’s January gains have been a rare breed, surfacing just twice. While it surged 40% last January, the prior one saw a 16% nosedive. More recently, the coin dipped 8% within a single day, settling near the $42,000 mark on Wednesday. Yet, optimism lingers on the horizon: LMAX Digital highlights that if a U.S. spot Bitcoin ETF receives the green light, there’s potential for a fresh upswing. “Even though the market’s priced in much of the hype, with so much hanging in the balance, a stash of capital is waiting on the bench for firm confirmation,” notes their morning briefing. “We foresee a bounce of roughly 10% unfolding over a couple of days following approval.”
Adding a twist to the story, MicroStrategy’s (MSTR) executive chairman Michael Saylor moved to offload stock options worth $216 million on Tuesday, as revealed by a filing with the U.S. Securities and Exchange Commission. The paperwork shows Saylor’s intention to divest 310,000 options granted back in 2014, which are set to expire come April. During MicroStrategy’s Q3 earnings call, Saylor disclosed plans to sell 5,000 shares daily for the ensuing four months, contingent on a set minimum price threshold. This strategy was charted out in the quarter’s 10-Q filing, which capped his total potential sales at 400,000 vested options through April 26.
Jim Cramer, known for helming CNBC’s Mad Money and ex-hedge fund manager, flipped his once bearish outlook on bitcoin on Tuesday (BTC), in anticipation of the U.S. possibly approving a spot ETF and as the price climbed above $45,000 for the first time in nearly two years. “You can’t just snuff this out,” Cramer told CNBC’s David Faber. “Bitcoin’s a marvel of tech, and it’s time folks accept it’s here for good.” He also took a jab at another notorious bitcoin naysayer, the late Charlie Munger, remarking that Munger “was totally out of touch.” This shift contrasts strikingly with Cramer’s stance during the Sam Bankman-Fried trial in early October, when he expressed no interest in going long on crypto, saying “Mr Bitcoin is about to take a serious hit.” Before that, Cramer revealed he dumped most of his bitcoin stash in 2021 after China clamped down on mining operations.
Mid-Article Fact Nugget
Bitcoin’s market capitalization stands at over $800 billion as of early 2024, making it the largest cryptocurrency by market value. Over 19 million bitcoins have been mined to date, representing about 90% of the total supply capped at 21 million. January historically records an average return of -2% for Bitcoin, showcasing the month’s volatility within a predominantly bullish long-term trend.
Buzz Around the Blockchain
- EU banking regulators ramp up scrutiny over ties between traditional banks and crypto firms, per Financial Times
- Bitcoin miners cashed out $129 million worth of BTC in just 24 hours, pushing reserves down to their lowest point since May
- BRC-20 marketplace creators lock horns over a proposed network overhaul
