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Bitcoin Posts Its First Weekly Decline Since Trump’s Victory
Bitcoin marked its first weekly decline since Donald Trump’s election victory as the Federal Reserve’s cautious policy outlook tempered optimism over the president-elect’s embrace of the crypto sector.
The largest digital asset was down more than 7% for the seven-day period through 9:27 a.m. Monday in Singapore, the biggest such drop since September. A wider crypto market gauge, encompassing smaller tokens such as Ether and meme-crowd favorite Dogecoin, suffered a sharper decline of about 10%.
The Fed on Wednesday delivered a third straight interest-rate cut while signaling a slower pace of monetary easing next year to keep inflation in check, sending global stocks into a tailspin. The hawkish pivot also damped the speculative spirits unleashed in the crypto market by Trump’s pledge of friendly regulations and his backing for a national Bitcoin stockpile. A record outflow from US exchange traded funds investing directly in Bitcoin last week will weigh on prices in the near term, said Sean McNulty, director of trading at liquidity provider Arbelos Markets.
Crypto Giant Tether Invests $775 Million in Video Platform Rumble
Rumble said Friday it entered an agreement for a $775 million investment from the cryptocurrency company Tether.
Tether agreed to purchase about 103.3 million shares of Rumble at $7.50, totaling $775 million.
The video platform said it anticipates using $250 million to support growth initiatives. It plans to use the remaining proceeds for a self tender offer for up to 70 million of its Class A common stock at $7.50 a share.
Rumble shares soared 54% in overnight trading.
Bitcoin Buyer MicroStrategy added to Nasdaq 100 Index
MicroStrategy will join the Nasdaq 100 effective Dec. 23.
MicroSrategy’s market cap has swelled to nearly $89 billion this year, after its stock rallied 477%.
The data mining company has transformed itself into a proxy for cryptocurrency bitcoin. Since 2020, it has amassed bitcoin holdings worth more than $41 billion at current market value, making it one of the world’s largest holders of the cryptocurrency.
Trump Appoints Bo Hines to Presidential Council on Digital Assets
President-elect Donald Trump announced that Bo Hines, a former college football player who ran unsuccessfully for the House of Representatives in 2022, to lead his “Crypto Council” as the Executive Director of the Presidential Council of Advisers for Digital Assets.
“In his new role, Bo will work with David [Sacks] to foster innovation and growth in the digital assets space, while ensuring industry leaders have the resources they need to succeed,” Trump wrote.
Trump also earlier appointed Stephen Miran to head his Council of Economic Advisers. Miran has previously stated that regulations inhibit innovation in the crypto sector.
Bitcoin Spot ETF Flow
The overall net outflow of the US Bitcoin spot ETF on Friday was $276.93 million. The total net asset value of Bitcoin spot ETFs is $109.72 billion, and the ETF net asset ratio (market value compared to total Bitcoin market value) is 5.75%.
Source: SoSoValue
The Bitcoin spot ETF with the highest net inflow on December 20 was Grayscale Bitcoin Mini Trust (BTC), with a net inflow of $6.41 million. Following that was Franklin Bitcoin ETF (EZBC), with a net inflow of 5.61 million, according to SoSoValue.
Source: SoSoValue
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