The Bitcoin Briefing, 20 September 2024
As we head over the hump of a traditionally challenging month for Bitcoin and the promise of ‘Uptober’ around the corner, we examine the biggest stories of the week.
Bitcoin Market News
Bitwise CIO Predicts Bitcoin Rally as Market Uncertainty Fades
Bitwise Chief Investment Officer Matt Hougan expects a strong Bitcoin rally in the fourth quarter of 2024. Current macroeconomic factors, including uncertainty around the US presidential election and Federal Reserve rate cuts, will likely lift by October and November. September has historically been a weak month for Bitcoin, with an average price drop of 4.5%. He pointed to “Uptober,” a period when Bitcoin historically performs better, offering hope for a market rebound once uncertainties around elections and monetary policy are resolved.
Trump Rolls Out New Cryptocurrency Business
Team members behind the World Liberty Financial crypto project, promoted by former President Donald Trump and his sons, confirmed they will launch a governance token, $WLFI. WLFI will be non-transferable and won't provide any economic rights, saying they only want token buyers seeking to participate in governance, not those after an economic return. The project raises concerns about whether Trump’s interest in Bitcoin was sincere.
Read more on The New York Times
BlackRock: Bitcoin is “A Hedge Against Global Financial Disorder”
BlackRock now sees Bitcoin as a “hedge against global disorder,” marking a significant shift for the $9 trillion asset manager, once sceptical of the digital asset. In a recent statement, the company described Bitcoin as a “global monetary alternative”. It emphasised its role in safeguarding against geopolitical instability and declining trust in traditional financial institutions, like banks and fiat currencies.
Bitcoin Exchange Reserves Drop to 2018 Levels
The number of Bitcoin held on exchanges significantly declined in September, dropping to levels last seen in mid-November 2018. Since the beginning of the month, Bitcoin exchange reserves have dropped from approximately 2.62 million BTC to 2.58 million BTC. A decrease in Bitcoin exchange reserves typically indicates that investors are moving their holdings off exchanges, opting for long-term storage in personal wallets. This action is often interpreted as a sign of confidence in Bitcoin’s future price potential, as it reduces the immediate supply available for trading, potentially setting the stage for a supply squeeze.
Bitcoin Trends
Crypto Bill Marks Key Legal Change for UK Bitcoiners
The UK has introduced a significant crypto regulation bill, marking a key legal change for Bitcoin holders. Part of a broader financial services bill it proposes expanding current banking and payment system rules to digital assets. This includes requiring stablecoin issuers to obtain licences from the Financial Conduct Authority to enhance financial stability in the crypto space.
Read more on Business Cloud
Bhutan Quietly Mining Massive Amounts Of Bitcoin
The government of Bhutan now owns more than $700 million worth of Bitcoin, which was earned through Bitcoin mining operations. The holdings position the small South Asian nation as the fourth largest holder of Bitcoin amongst countries, behind just the United States, China and the United Kingdom. Unlike most other countries who own significant amounts of Bitcoin, Bhutan has not acquired their Bitcoin holdings through law enforcement or asset seizures.
Microstrategy Calls Itself ‘Bitcoin Development Company’
Michael Saylor's MicroStrategy Purchased 18.3K more Bitcoins for $1.1 billion, bringing the firm’s total holdings to 244,800 Bitcoins, worth about $14 billion at current prices. The move came amid a corporate message that the former business software firm is now a Bitcoin development company. BitcoinTreasuries data shows that it is the biggest holder of the asset among all publicly listed companies in the world.
How SMEs Can Harness the Crypto Revolution
LondonLink’s very own Danny Barugh penned a piece about how small and medium-sized enterprises can benefit from cryptocurrency by leveraging stablecoins for faster, low-cost international payments and streamlining operations. While large firms use crypto for long-term investments, SMEs can harness its practical advantages to reduce fees, improve transaction times, and enhance market reach.
Bit of Bitcoin fun
Cybercriminals Prefer Fiat, Not Bitcoin
Whilst crime is never a fun topic, it’s time to set the record straight for those who say, “Cybercriminals use Bitcoin”. Bitcoin is indeed the preferred method of payment for ransomware criminals. However, it is also important to understand that ransomware represents a small portion, approx 0.33%, of overall cybercrime. According to the US Treasury’s 2024 National Money Laundering Risk Assessment Report, fiat is the preferred vehicle for cyber-criminals.
