• Bitcoin Reaches New All Time High

• ETH Spot ETFs Break Records

• ‘Shrimp Wallets’ Boom as Bitcoin ‘Whales’ Sell Big

• 2 Weeks Until Next Crypto Rally

• And more…

Market Data Prices as of 6:00am ET

This Update Is Brought To You By Bitbo

We are excited to announce Bitbo’s newest trading chart:

Bitcoin block subsidy & subsidy value →

Block Subsidy Value: This shows how much each block's new Bitcoin is worth in USD. We calculate this by taking the number of new Bitcoin per block and multiplying it by Bitcoin's price on that specific day.

Subsidy in BTC: This tracks how many new Bitcoin miners get for solving each block. Every four years or so, this reward gets cut in half - it started at 50 BTC, then went to 25, then 12.5, then 6.25, and will keep halving into the future.

BITCOIN REACHES NEW ALL TIME HIGH

Bitcoin soared to unprecedented highs on Sunday, before rising again to over $107K yesterday afternoon. At time of writing, Bitcoin price has continued to rise, and currently sits at $107,147.

This achievement signals Bitcoin's evolution into a mainstream financial asset, bolstered by institutional backing, advancements in ETF offerings, and growing integration into corporate finance strategies.

Bitcoin's recent price surge has left investors buzzing.

So, what’s driving this impressive rally? Let’s break it down:

1️⃣ Donald Trump’s recent comments on crypto: In a recent CNBC Interview current President-elect hinted at plans to “do something great” with cryptocurrencies, sparking speculation about a potential US Bitcoin strategic reserve.

If Trump's Bitcoin reserve plan becomes a reality, it has the potential to redefine the global financial system.

Analysts are forecasting Bitcoin’s value could soar past $800,000 per coin, driving its market capitalization to an astonishing $15 trillion.

Such a development would solidify cryptocurrency as a cornerstone of both national financial policies and global economic strategies.

2️⃣ MicroStrategy’s major milestone: The company, a long-time Bitcoin advocate, made waves with its inclusion in the Nasdaq-100 index.

Additionally, CEO Michael Saylor teased yet another Bitcoin purchase, with a possible announcement coming today.

(Pro tip: Saylor’s done this before, tweeting similar hints just before big buys!)

3️⃣ Federal Reserve rate cut expectations: The market is bracing for another interest rate cut this Wednesday, with CME FedWatch placing the odds at a staggering 97.1% for a 0.25% reduction.

This move could further strengthen Bitcoin's appeal as an alternative store of value.

With these factors combined, Bitcoin's upward trajectory might just be getting started.

ETH SPOT ETFS BREAK RECORDS

The growing popularity of Ethereum spot exchange-traded funds (ETFs) has reached new heights, with an unprecedented $855 million net inflow recorded during the week of December 9–13, 2024, according to Sosovalue.

Leading the charge, BlackRock’s ETH ETF (ETHA) secured $523 million in inflows, followed by Fidelity’s FETH with $259 million.

Grayscale’s ETHE also attracted significant attention, reflecting a broader wave of institutional interest in Ethereum.

Daily inflows as of December 13 underscore the momentum: ETHA added $9.5 million, ETHE gained $7.2 million, and FETH brought in $6.86 million in new investments.

ETH’s Potential Rally Toward $5,000?

Ethereum’s price climbed to $4,092 on Monday, marking a 1.8% gain in 24 hours.

Analysts at CryptoQuant suggest the cryptocurrency could soon breach the $5,000 mark, fueled by supply-demand dynamics and surging network activity.

The report highlights Ethereum’s realized price, a key valuation metric reflecting the average acquisition cost of ETH, which supports an upper price limit of $5,200.

With growing confidence in Ethereum from institutional players, the cryptocurrency appears poised for a major breakout.

MindLabPro: The world's most advanced nootropic formula.

Designed to boost your everyday brainpower. For enhanced cognitive function and peak daily performance.

• 11 premium-grade research-backed nootropic nutrients.

• 100% plant-based & stim-free. In prebiotic vegan capsules.

• For focus, clarity, memory, mood, motivation & more.

‘SHRIMP’ WALLETS BOOM AS BITCOIN ‘WHALES’ SELL BIG

‘Shrimp’ Wallets Surge 21.9% as Long-Term Holders Sell 827,783 BTC - What Gives?

The number of Bitcoin shrimp wallets—those holding less than 1 BTC—is expected to jump by 9%, says Axel Adler, a prominent analyst.

These wallets currently total 323,000 and are projected to reach 351,000 soon.

This rise began when Bitcoin traded at $61,000, with 265,000 shrimp addresses at the time.

Since then, their growth rate has soared to 21.9%, coinciding with Bitcoin’s current valuation of $101,720.

The uptick in shrimp wallets highlights growing interest among retail investors, who are actively purchasing Bitcoin despite its hefty price tag of over $100,000.

Adler remarked on X that these buyers demonstrate unwavering faith in Bitcoin’s long-term growth, even as prices hit historic highs.

Conversely, long-term Bitcoin holders—those holding for more than 155 days—appear to be offloading their assets.

Over the past month (as of Dec. 9), they sold 827,783 BTC, sparking speculation about a potential market peak.

Analysts caution that if buying demand doesn’t keep pace, this selling pressure could lead to a price correction.

However, not all experts agree on the likelihood of a sharp decline.

Bitfinex analysts argue that future price dips may be milder than the 10% drop seen in early December, thanks to reduced sell-side pressure and fewer realized profits.

This could pave the way for more stable pricing trends.

The contrasting behaviors of retail shrimp investors and long-term holders underscore a fascinating shift in the Bitcoin market. 

Retail buyers remain bullish, snapping up Bitcoin even at high prices, while long-term holders exercise caution.

This evolving dynamic will play a pivotal role in shaping Bitcoin’s future performance, influencing both short-term volatility and long-term trends.

Bitcoin is the ultimate asset for your retirement. Create a tax shelter for exponential returns! Speak to one of the specialists at Swan Bitcoin today.

Swan has built incredible tools to allow you to measure the impact that Bitcoin could have on your portfolio.

Book A Swan IRA Consultation - 15 min

Check out the Swan retirement calculator and plug in your details to measure the potential of Bitcoin in your retirement account.

TWO WEEKS UNTIL NEXT CRYPTO RALLY

Bitcoin is poised for a meteoric rise, with projections suggesting it could reach $150,000 to $450,000 next year.

By 2034, the cryptocurrency market is expected to achieve an extraordinary $100 trillion market cap.

These bold predictions come from Raoul Pal, CEO of Real Vision, who remains optimistic about the future of digital assets despite ongoing market volatility.

The resilience of crypto is evident, with major blockchain networks breaking records for transaction speed and adoption rates surging across various sectors.

The involvement of institutional investors and AI in blockchain technology has further bolstered its growth trajectory.

In a recent conversation with Dan Tapiero, CEO of One Roundtable Partners, Pal delves deeper into this anticipated crypto boom.

Watch the full discussion to uncover more fascinating insights into what could be the dawn of a transformative era in digital finance.

Heatbit Trio is the world’s only heater-purifier that mines Bitcoin at 10 TH/s and makes you ≈30,000 SATS / mo

Get 5% Off with Coupon Code »CLOUDAICRYPTO»

OTHER NEWS

• El Salvador aligns with the IMF by making Bitcoin acceptance optional, securing a $1.3 billion financial package and fostering international support.

• El Salvador identifies $3 trillion in gold reserves and debates transitioning this wealth into Bitcoin to capitalize on the digital asset's long-term potential.

• Amboss debuts Magma AI, a machine learning tool designed to optimize liquidity management and improve business operations on the Lightning Network.

• Fran Finney, widow of Bitcoin pioneer Hal Finney, joins Nostr and garners over one million satoshis, continuing her connection to Bitcoin’s legacy.

• David Sacks, Trump’s appointed AI and crypto czar, calls for a review of “Operation Choke Point 2.0” amid claims of its damaging effects on the crypto industry.

• BlackRock advises investors to allocate up to 2% of portfolios to Bitcoin, showcasing growing institutional confidence as ETF assets top $113 billion.

• Byte Federal, a Bitcoin ATM operator, reports a data breach exposing sensitive data from 58,000 users, including Social Security numbers and addresses.

• Developers from Ginger Wallet uncover a vulnerability in the WabiSabi protocol that could allow attackers to trace user transactions and compromise privacy.

• Bernstein analysts predict that quantum computing threats to Bitcoin remain decades away, even as Google advances its quantum technology with the Willow chip.

• The Economist highlights Bitcoin’s shift from speculative asset to a more traditional risk-on investment, increasingly tied to broader financial markets.

• Alabama’s state auditor proposes creating a Bitcoin reserve to bolster the state’s economy, attract investment, and establish a leadership role in Bitcoin adoption.

RECOMMENDATIONS

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.