Welcome to this week’s edition of This Week in Crypto! Bitcoin is making headlines again, pushing close to the $100,000 mark with record-breaking gains. Meanwhile, MicroStrategy continues its Bitcoin shopping spree with their latest purchase of 51,780 Bitcoin. Lastly, SEC Chair Gary Gensler is preparing to step down, sparking conversations about what could come next for crypto regulation. Let’s dive into the details!
Quick Look at This Week’s Stories:
- Bitcoin’s Record Month: Bitcoin posts a 40% monthly gain, bringing it just shy of $100,000.
- MicroStrategy Stock Surge: MicroStrategy’s stock has soared 500% this year amid Bitcoin’s recent price increase.
- Gensler’s Departure: SEC Chair Gary Gensler is set to leave in January, opening the seat to a new, potentially crypto-friendly successor.
Bitcoin Prints Record 40% Monthly Gains, Nears $100K
Bitcoin has seen an explosive rise in November, printing a record 40.8% monthly gain that puts it within striking distance of the $100,000 mark for the first time in history. The price rise has come in the weeks following the U.S. presidential election. The wave of renewed investor appetite for digital assets like Bitcoin coincided with this surge, as shown by data from Bitstamp.
Crypto market sentiment has been largely positive, as shown by stablecoin inflows to exchanges hitting a monthly high of $9.7 billion. Investor optimism has also reached a notable peak, with the Crypto Fear & Greed Index moving up to 82, reflecting “extreme greed.”
Additionally, United States Bitcoin (BTC) exchange-traded funds (ETFs) broke $100 billion in net assets for the first time on Nov. 21, according to data from Bloomberg Intelligence. Bitcoin ETFs have dominated the landscape since spot BTC ETFs launched in January. Currently, Bitcoin ETFs collectively manage approximately $104 billion and are on track to surpass gold ETFs, which hold around $120 billion in assets. As the end of November nears, the crypto community is watching closely to see if Bitcoin will cross the coveted six-figure valuation.
MicroStrategy Stock Surges 500% Year-To-Date as Bitcoin Gains
MicroStrategy, the largest public holder of Bitcoin, has enjoyed a remarkable 500% increase in its stock value this year, fueled largely by Bitcoin’s price increase. With 331,200 BTC on its balance sheet, the company’s unrealized gains stand at an impressive $15.51 billion, based on the latest Dropstab data. The performance makes MicroStrategy one of the biggest winners in the tech and crypto space this year, with only Nvidia seeing a larger percentage gain in 2024.
The company further cemented its Bitcoin-forward stance by purchasing an additional 51,780 BTC worth $4.6 billion, at an average price of $88,627 per Bitcoin. This acquisition marks the largest Bitcoin purchase on record for MicroStrategy, and pushes its total holdings to 331,200 BTC. Despite these successes, some caution that MicroStrategy’s reliance on Bitcoin’s market movements leaves it exposed to significant volatility, should the market experience a downturn.
SEC Chair Gary Gensler to Step Down in January 2025
The United States Securities and Exchange Commission (SEC) has announced that Gary Gensler will step down from his role as Chair on January 20, 2025, coinciding with the inauguration of President-elect Donald Trump. Gensler, known for his tough stance on cryptocurrencies, leaves behind a legacy marked by over 100 enforcement actions against various crypto firms. His approach earned him both praise and criticism, with many arguing that his policies stifled innovation in the crypto industry.
Gensler’s departure opens the door for a potential change in regulatory direction. As Trump assumes office, a more crypto-friendly SEC Chair could be appointed, with speculation pointing towards either SEC Commissioner Mark Uyeda or Hester Pierce. Both have voiced criticisms of Gensler’s approach in the past, and industry participants are eager to see if a new administration could bring more favorable regulations for the rapidly evolving cryptocurrency space.
