Weekly Update: 4th of December
What happened between the 27th of November and the 4th of December?
- US Bitcoin spot ETFs record $6.4 billion in inflows in November. Read more
- While Bitcoin’s price has slightly stagnated, altcoins have taken off, hinting that altcoin season is on the horizon. Read more
- Tether has halted the minting of its Euro-backed stablecoin, EURT, in light of the upcoming European Markets in Crypto-Assets (MiCA) Regulation. Read more
- A Brazilian lawmaker has introduced a bill to create the Strategic Sovereign Bitcoin Reserve, allocating up to 5% of the nation’s $372 billion financial assets. Read more
US Bitcoin ETFs aim for a strong close
In November, U.S. Bitcoin spot ETFs experienced over $6.4 billion in inflows. This surge was driven by Donald Trump’s presidential victory, with many anticipating a friendlier and more pro-digital assets approach in the U.S. Leading the pack was BlackRock’s IBIT ETF, which accounted for over $5.6 billion of inflows, approximately 87% of the total monthly inflow. This influx contributed to Bitcoin’s meteoric rise in November, rallying 45% to $99,000. While Bitcoin’s price has stagnated slightly, we still expect these inflows to continue, potentially pushing Bitcoin past the $100,000 mark by the end of 2024.
Is altcoin season upon us?
Between November 27th and December 4th, Bitcoin approached the $100,000 mark multiple times but failed to breach this historic level. As a result, Bitcoin’s price stabilized around $95,000. However, we are currently observing a decline in Bitcoin’s dominance—its market capitalization as a percentage of the total digital assets market capitalization. This decreasing dominance, coupled with a stable Bitcoin price, suggests that liquidity is shifting toward altcoins. This is evident in sudden price increases in Ripple, Chainlink, and Avalanche; nearly all altcoins are showing an upward trend. If this trend continues, we may be at the start of an altcoin season, where altcoins begin to outperform Bitcoin
Tether halts the minting of its Euro-backed stablecoin
On November 27th, stablecoin issuer Tether (USDT) announced that it is halting support for its euro-pegged stablecoin (EURT) in light of the upcoming European Markets in Crypto-Assets (MiCA) Regulation. Holders of the EURT stablecoin have until November 25, 2025, to redeem their tokens.
Although unfortunate, Tether will likely feel little impact from the discontinuation of the stablecoin, as EURT has a market capitalization of $27 million compared to Tether’s dollar-pegged stablecoin USDT, which stands at $131 billion. Furthermore, while Tether is discontinuing its euro stablecoin, the company has invested in various MiCA-compliant stablecoins, including the Dutch firm Quantoz. This suggests that Tether is opting for an indirect approach to the euro stablecoin market.
A Brazilian lawmaker proposes to create the Strategic Sovereign Bitcoin Reserve
In Brazil, a lawmaker has proposed a bill to introduce a Strategic Sovereign Bitcoin Reserve, which would allow the country to allocate up to 5% of its ~$372 billion in international reserves to Bitcoin through a phased acquisition strategy. The goal of the bill is to enhance Brazil’s economic resilience to currency fluctuations and geopolitical uncertainties. Slowly but surely, we are witnessing the rise of Bitcoin Strategic Reserves, including discussions at both state and national levels in the United States. We expect that more countries will increasingly engage in these discussions, and by 2025, we might see the first (small) country implement a modest reserve.
In other digital assets news
- Surprise, surprise, Microstrategy has acquired an additional 15,400 Bitcoin for $1,5 billion, bringing its total Bitcoin reserves to 402,100 Bitcoin.
- The U.S. Government has transferred roughly 19,800 Bitcoin, worth approximately $1.9 billion, to Coinbase Prime, causing some speculation that the Government might start selling its confiscated Bitcoin.
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