🟠 Bitcoin Dips

MicroStrategy to raise $42B to buy BTC & Florida considers BTC investment

Author

Jordan Tuwiner
October 31, 2024

First time reading? I’m Jordan, and this is The Bitcoin Minimalist. Every Tuesday & Thursday, we scour 100s of sources to bring you need-to-know Bitcoin insights.

Good morning — Jordan here.

Happy Tuesday to the 16,914 Minimalist members reading today. 👋 

Writing this as we just dipped under $70K.

The next week or so should be interesting with the U.S. election coming up, plus a potential Fed rate cut next week.

Today we’re covering:

  • Florida explores Bitcoin in state pensions

  • Reddit sells all of its BTC

  • BlackRock derivatives may reshape BTC cycle

  • And everything else you need to know.

Estimated read time: 3 minutes and 2 seconds

Bitbo’s October 2024 price report was just published on Bitbo Pro.

Here’s a sneak peek:

“Bitcoin has returned to the March all-time high area of $73,800. Zooming out, it's formed a massive cup and handle pattern. $115,000 to $135,000 is likely the next area of this bull market.”

WHAT WE’RE WATCHING

Florida CFO Jimmy Patronis.

💼 Florida’s CFO Jimmy Patronis advocates for Bitcoin in the state’s $205 billion pension fund. He has suggested a Digital Currency Investment Pilot Program under the Florida Growth Fund. The proposal follows similar moves by states like Wisconsin and Michigan, with a report on feasibility requested by March 2025.

📢 Michael Saylor shared a fake pro-Bitcoin quote from Trump with his 3.6M followers. The quote, falsely claiming Trump would end taxes on crypto, originally appeared on the social media account Basedkarbon. Misinformation spread quickly, even reaching accounts like Kraken and Bitcoin Archive.

📊 Microsoft’s board will review a shareholder proposal to assess Bitcoin as a treasury asset. These institutional moves reflect rising interest in Bitcoin, yet mainstream media has largely ignored the developments.

💰 MicroStrategy plans to raise up to $42 billion over three years for Bitcoin purchases. Holding 252,220 BTC valued at over $18 billion, the company aims for a 6-10% BTC yield target, up from previous estimates.

📊 Bitbo introduces a new MVRV chart, showcasing Bitcoin's market value-to-realized value ratio. MVRV, calculated by dividing Bitcoin's price by realized price, helps assess if Bitcoin is over- or undervalued.

📈 BlackRock's spot Bitcoin ETF saw record inflows of $875M on Oct. 30. This marked its largest inflow day since launching in January. This inflow surpassed its previous high of $849M, contributing to 13 consecutive inflow days, totaling $4.08B. Other U.S. spot Bitcoin ETFs saw comparatively modest inflows.

🚀 James Check discusses how BlackRock's Bitcoin derivatives might disrupt Bitcoin’s four-year cycle by reducing volatility. Institutional investors are driving a shift toward more stable, long-term trends, using tools like Bitcoin options to hedge risks, potentially reshaping the cycle and fostering a “chop-solidation” phase where price remains steady, favoring accumulation.

IN THE LOOP

  • China is considering a $1.5 trillion stimulus package, potentially boosting Bitcoin demand.

  • President Joe Biden thanked Nigerian President Bola Tinubu for releasing detained Binance executive Tigran Gambaryan.

  • Reddit sold most of its Bitcoin holdings in Q3.

  • BRICS nations are exploring Bitcoin adoption for international trade to reduce dependence on the U.S. dollar.

  • Russia is restricting Bitcoin mining in energy-strapped regions to ease power grid strain.

  • MicroStrategy’s stock dropped after a Q3 earnings miss.

POLL

Do you think Bitcoin derivatives & options could disrupt the traditional four-year Bitcoin cycles?

Login or Subscribe to participate in polls.

TUESDAY’S POLL RESULTS

Where do you think Bitcoin's price will head next after crossing $71,000?

🟢🟢🟢 Above $80,000 - 74%

🔴 Below $70,000 - 26%

🟢 Above $80,000 - “It could easily drop back into the mid 60’s but the stars are lining up for much higher Bitcoin.” - Chris

🟢 Above $80,000 - "IBIT options approval.” - Ed

🟢 Above $80,000 - “Falcon Heavy launch is just starting. Moving above $70k is just the engines firing. We haven't even lifted off yet. BTC is 100% correlated with the halving cycles. Fasten your seat belts and return your tray tables and seats to their full and upright positions. ;)“ - Rob

VIDEO

Bitcoin is a portable, low-maintenance asset, while real estate demands ongoing costs like taxes and upkeep.

CHARTS & DATA

Hash rate - Bitcoin’s hash rate continues to climb. It’s currently sitting at an all-time high of 756.25 EH/s.

The yellow dotted line indicates a golden cross.

Golden Cross - Bitcoin’s 50 and 200 day moving averages just crossed, marking a “golden cross”. Generally this is seen as a positive signal for future price increases.

FROM THE ARCHIVE

📜 Today is Bitcoin Whitepaper day!

Bitcoin Whitepaper Day marks the release of the Bitcoin: A Peer-to-Peer Electronic Cash System, written by Satoshi Nakamoto on October 31, 2008.

Published amid the financial crisis, the whitepaper outlined Bitcoin’s decentralized, peer-to-peer network, Proof-of-Work mining, and a public ledger to prevent double spending.

MORE FROM BITBO

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