The Bitcoin Briefing, 5 September 2024
This week, central banks' role in Bitcoin’s prosperity is in sharp focus, with significant moves made across Europe, the Middle East, and Asia all contributing to flattish performance.
Bitcoin Market News
Central Banks Are Betting On Michael Saylor's Microstrategy
According to new filings, multiple central banks in Norway and Switzerland are now exposed to Microstrategy stock. Microstrategy’s extensive Bitcoin holdings validate that traditional markets and Bitcoin continue to overlap, a growing trend since the launch of spot Bitcoin ETFs on major United States stock exchanges.
Bank of Japan Governor Hints at More Rate Hikes; BTC Drops 0.4%
The divergent monetary policy paths of the BOJ and the Fed mean potential yen strength and pain for risk assets, including cryptocurrencies. According to Bloomberg, Bank of Japan Governor Kazuo Ueda reiterated that the central bank will raise interest rates further if the economy and inflation develop as expected. While the yen rallied, BTC and S&P 500 futures registered moderate losses.
Central Banks' Gold Buying Surges, Yet Bitcoin Outperforms
Central banks ramped up their gold reserves in 2024, with a record 483 tonnes purchased in the year's first half. Key contributors to the surge include the National Bank of Poland, the Reserve Bank of India, and the Central Bank of Turkey. Concerns over the reliability of Western reserve assets partly drive gold’s popularity. Despite gold’s strong performance, up 23% year-to-date, Bitcoin has outperformed it with a 37% increase.
Bitcoin Leads $305m Outflows as Strong US Economic Data Hits Crypto
According to CoinShares' latest weekly report, crypto investment products experienced significant outflows last week, totalling $305 million, as negative sentiment spread across various providers and regions. The report attributed these outflows to stronger-than-expected US economic data, noting that this data “diminished the likelihood of a 50-basis point interest rate cut.”
Bitcoin Trends
Bitcoin Vs. AI - Who’s Draining The Power Grid Faster?
Energy rivalry between Artificial Intelligence and Bitcoin mining is heating up as competition reshapes energy demands. Analysts expect AI to outperform Bitcoin miners in energy demand by 2027. AI data centres forecast they will consume anywhere from 85 to 134 TWh of electricity compared to Bitcoin mining, which uses around 120 TWh annually.
Australia’s Bitcoin ATM Boom
In September 2022, Australia had just 73 Bitcoin ATMs. Since then, that number has skyrocketed to 1,162, according to data from Coin ATM Radar. This growth places Australia third globally in total ATM installations, behind only the U.S. and Canada, which have 31,861 and 3,004 machines, respectively.
Could Trump Win Delay Crypto Regulation Relief?
Former President Donald Trump, who continues to tout himself as the pro-crypto candidate, has targeted US Securities and Exchange Commission Chair Gary Gensler, labelling him as the industry's biggest villain. However, US investment bank TD Cowen speculates that Gensler could remain a commissioner, potentially delaying expected regulatory relief for the crypto sector until late 2026.
Democrats Exclude Bitcoin And Crypto From 2024 Platform, Aligning With Past Hostility
Despite the growing significance of Bitcoin and digital assets, neither Kamala Harris nor Tim Walz, who are running for president and vice president in the upcoming election this November, has prioritised the inclusion of Bitcoin and crypto in the party's agenda. In contrast, the Republican Party has embraced Bitcoin, making it a central part of their platform.
Hilbert Capital and Xapo Bank Collaborate to Launch Bitcoin Hedge Fund
Swedish public company Hilbert Group’s asset management division has partnered with Gibraltar private bank Xapo Bank to launch a bitcoin-denominated hedge fund expected to attract over $200 million in initial investments.
Bit of Bitcoin fun
Sweet Justice: Prosecutors Seize 23.5 Bitcoin From Toblerone-Wielding Robbers
In one bizarre incident, housebreaking robbers threatened a man with a Toblerone chocolate bar for his Bitcoin stash. The incident was reported in Scotland and has only now gained attention this month as Scottish prosecutors seized 23.5 Bitcoin and exchanged them for cash – marking a legal first for the country.
