🇨🇳 China's Effect on Bitcoin

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.

Today we’re covering:

• China cuts rates,

• Positive Bitcoin developments,

• Analyst suggest Bitcoin may be close to breakout,

• And everything else you need to know.

—Jordan

WHAT WE’RE WATCHING

🇨🇳 China's central bank announced a $140 billion stimulus, including a 50 bps reserve requirement ratio cut, to revive its economy and property market. Analysts suggest this could boost Bitcoin, as prior Chinese liquidity injections spurred significant BTC rallies.

🐋 A dormant Bitcoin miner from 2009 has moved 10 BTC to Kraken over three weeks, signaling potential selling. The latest transaction, involving 5 BTC, occurred on Tuesday. This follows recent activity from other "Satoshi era" wallets, including a 15-year-old wallet moving $16 million worth of BTC last week.

💰 BlackRock's Bitcoin ETF now requires Coinbase to complete Bitcoin withdrawals within 12 hours to address investor concerns over custodial practices. Despite speculation, Coinbase CEO Brian Armstrong confirmed all ETF transactions are settled onchain, with annual audits by Deloitte.

🗳️ VanEck argues Kamala Harris could be more beneficial for Bitcoin than Donald Trump. While Trump supports deregulation, Harris’s stricter policies might weaken the U.S. dollar, driving more people toward Bitcoin. Bitcoin’s established regulatory clarity could give it a competitive edge under a Harris administration.

📊 Bitcoin may be on the verge of a breakout, says analyst Rekt Capital, based on historical cycles following halving events. Bitcoin typically breaks out 154-161 days post-halving, with the latest halving occurring 157 days ago. BTC is up 9% this September, beating its previous September record.

✅ The SEC has approved BlackRock's spot Bitcoin ETF options for listing on the NASDAQ. The iShares Bitcoin Trust (IBIT) will offer institutional investors a way to hedge Bitcoin exposure. This marks another step toward Bitcoin’s mainstream acceptance, with options providing more flexible trading strategies.

💼 Bitwise CIO Matt Hougan revealed that 70% of top financial advisors at a recent summit now own Bitcoin in their personal portfolios. This marks a sharp rise from prior years. Although client allocations are still limited, Hougan suggests that wider adoption may follow within 6-12 months.

📈 Bitcoin developments continue to surge, according to Marty Bent. The Ark protocol launched its first mainnet transactions, offering a new way to make off-chain payments. Bhutan holds over 13,000 BTC, leveraging its hydroelectric power for mining. Meanwhile, the Fed's 50 basis point rate cut signals potential economic instability, fueling Bitcoin's appeal.

IN THE LOOP

Donald Trump joked about using Bitcoin to address the $35 trillion U.S. debt while expressing optimism about its future.

Gold hit a record high of $2,600+ per ounce while Bitcoin surged to over $64K following the Fed’s rate cut and rising geopolitical tensions.

BlackRock runs its own Bitcoin node to validate the BTC held by its spot Bitcoin ETF.

Telegram will now share user data with authorities in criminal investigations following CEO Pavel Durov's arrest in France.

Selling Bitcoin may offer short-term gains, but its long-term potential as a hedge against fiat's decline makes holding more appealing, according to an analyst.

Forbes removed an article criticizing the BBC's exaggerated Bitcoin water usage claims, raising concerns about transparency and journalistic integrity.

POLL

TUESDAY’S POLL RESULTS

Do you agree with Arthur Hayes that the Fed's rate cut is politically motivated?

👍 Yes, for election purposes- 66%

👎 No, the cut was necessary - 31%

Other - 3%

👍 Yes - “Financial markets are overcooked and required a rate cut to justify valuations.” - Grant

VIDEO

Bhutan, known for prioritizing happiness, has quietly become the fourth-largest government holder of Bitcoin, leveraging its hydro-power resources for green mining.

CHARTS & DATA

Halving Effect [Video] - Our newest chart, based on PlanB’s idea, shows Bitcoin returns with and without the halving. While past results don’t guarantee future results, the evidence is clear that the halving is a major drive of Bitcoin’s price and market cycles.

Mayer Multiple - The Mayer Multiple is almost back at 1.0.

Power Law - Despite recent gains, the Bitcoin price at around $63,500 is still well below the power law projected price of ~$90,700.

Rainbow HPR - Out of 4 price projection models, the Rainbow HPR projection is currently the most accurate.

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Halving Clock: Track the countdown to the Bitcoin halving with our Bitcoin halving clock.