Did you cash in this year?
Justin Arzadon
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The broader crypto market and bitcoin rallied on the news that SEC Chair Gary Gensler will be resigning. Both hit new all-time highs; however, bitcoin was unable to cross US$100k.
Bitcoin and Ethereum were up 8.65% and 9.34% respectively over the seven days to 24 November. Bitcoin’s market capitalisation is above US$1.94 trillion. The global crypto market cap is up to ~US$3.36 trillion, while bitcoin’s market dominance sits at 57.8%.
| Price | High | Low | Change from previous week | |
| BTC (in US$) | $98,462 | $99,605 | $89,141 | 8.65% |
| ETH (in US$) | $3,427 | $3,420 | $3,038 | 9.34% |
Source: CoinMarketCap. As at 24 Nov 2024. Past performance is not indicative of future performance. Performance is shown in US dollars and does not take into account any USD/AUD currency movements.
Source: Glassnode. Past performance is not indicative of future performance.
Crypto news we’re watching
Gensler to depart on 20 January 2025
Last Thursday, the US Securities and Exchange Commission (SEC) announced that Chairman Gary Gensler will be stepping down. Gensler confirmed the news through a post on X and the SEC website that he will step down on 20 January 2025. Gensler’s term was not due to end until 2026.
In his role as Chairman from 2021, Gensler took a ‘regulation by enforcement’ approach with crypto companies and had several disputes with the crypto industry, including a legal fight with Grayscale to block bitcoin ETFs.
This paves the way for President-elect Donald Trump to select a replacement. Trump had vowed to fire Gensler if he were to make it into office. Trump has not made a selection on who will replace the outgoing Chair, but it is expected that whoever it is will be ‘friendlier’ to crypto and Wall Street.1
Trump’s pick for Treasury Secretary
US President-elect Donald Trump has made his pick for Treasury Secretary. Hedge fund manager and crypto enthusiast Scott Bessent is in line to be the economic adviser to the President, as long as the Senate confirms him.
In a Fox interview back in July, Bessent said: “I have been excited about (Trump’s) embrace of crypto and I think it fits very well with the Republican Party, the ethos of it. Crypto is about freedom and the crypto economy is here to stay.”2
CRYP company spotlight
MicroStrategy buys more
MicroStrategy recently acquired another US$4.6 billion in bitcoin. According to filings with the SEC, the company made a couple of large purchases in September, followed by further buying of 78,780 bitcoin between 31 October and 17 November.
MicroStrategy has already announced it will be looking to raise more funds for additional bitcoin purchases.
The firm now holds a total of 331,200 bitcoin, making it the largest institutional holder. The aggregate price paid by MicroStrategy is roughly US$16.5 billion, which is well below the current value3.
MicroStrategy is held in the Betashares Crypto Innovators ETF (ASX: CRYP)4. CRYP provides exposure to global companies at the forefront of the crypto economy.
Bitcoin (BTC): Total Supply Held by Short-Term Holders
This metric is the total amount of circulating supply held by short term holders. Long- and Short-Term Holder supply is defined with respect to the entity’s averaged purchasing date with weights given by a logistic function centred at an age of 155 days and a transition width of 10 days.
According to data from Glassnode, since 3 October, a significant number of new buyers have been entering the market, taking the number of BTC from 2.52 to 3.15.
Source: Glassnode. Past performance is not indicative of future performance.
Bitcoin (BTC): HODL waves
This metric bundles all active supply age bands, aka HODL waves. Each coloured band shows the percentage of BTC in existence that was last moved within the time period denoted in the legend.
According to data from Glassnode, as at [date], 36.5% of bitcoin has been held less than 1 year, 32% between 1 and 5 years, and 31.2% for over 5 years.
Altcoins generally performed well over the last seven days, but a couple of standouts among the top Top 10 were Ripple XRP and Cardano ADA, which were up 41% and 49% respectively over the last 7 days, and 133% and 171% respectively over the year to 24 November.
Helping push the price higher was news of Gensler resigning from the SEC. Ripple was caught up in a lawsuit with the SEC that started in December 2020. Although the lawsuit is over, the SEC continues to seek remedies from Ripple in the form of large fines5. With a new Chairman of the SEC coming in, some are speculating that other cryptocurrencies will also have a chance at having an ETF listed over them.
Investing in crypto assets or companies servicing crypto-asset markets should be considered very high risk. Exposure to crypto assets involves substantially higher risk when compared to traditional investments due to their speculative nature and the very high volatility of crypto-asset markets.
Investing in crypto assets or crypto-focused companies is not suitable for all investors and should only be considered by investors who (i) fully understand their features and risks or after consulting a professional financial adviser, and (ii) who have a very high tolerance for risk and the capacity to absorb a rapid loss of some or all of their investment. Any investment in crypto assets or crypto-focused companies should only be considered as a very small component of an investor’s overall portfolio.
Investing in crypto assets or crypto-focused companies is not suitable for all investors and should only be considered by investors who (i) fully understand their features and risks or after consulting a professional financial adviser, and (ii) who have a very high tolerance for risk and the capacity to absorb a rapid loss of some or all of their investment. Any investment in crypto assets or crypto-focused companies should only be considered as a very small component of an investor’s overall portfolio.
References:
1. https://www.cnbc.com/2024/11/21/sec-chair-gensler-will-step-down-jan-20-making-way-for-trump-replacement.html
2. https://www.coindesk.com/policy/2024/11/22/trump-plans-to-name-pro-crypto-hedge-fund-manager-scott-bessent-as-treasury-secretary/
3. https://finance.yahoo.com/news/microstrategy-buys-4-6-billion-131526958.html
4. As at 22 November 2024. No assurance is given that this company will remain in the portfolio or will be a profitable investment.
5. https://cryptopotato.com/bitcoin-en-route-to-100k-ripple-explodes-66-weekly-cardano-eyes-1-this-weeks-crypto-recap/
Off the Chain is published every second Tuesday. It provides the latest news on bitcoin and the rest of the crypto market, along with analysis and insights into the world of crypto.
It provides general information only and is not a recommendation to invest in any crypto asset, crypto-focused company or investment product.
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