MicroStrategy (MSTR) boosted its BTC holdings in November.
Coinbase (COIN) jumped 61.72% in November despite the ongoing SEC v Coinbase case.
BTC-spot ETF news continued to support hopes of a batch approval in January.
MicroStrategy Increases Bitcoin Holdings to 174,530 BTC
On Thursday, MicroStrategy (MSTR) announced the acquisition of 16,130 bitcoin (BTC) for approximately $593.3 million in fiat. The firm paid an average price of $36,785 per BTC.
The purchase took the total BTC holding to 174,530 BTC. MicroStrategy paid approximately $5.280 billion to acquire the total BTC holding, with an average purchase price of about $30,252 per BTC.
News of the purchase coincided with a BTC loss on Thursday, impacting the MicroStrategy stock price. Shares of MSTR fell by 1.74% vs a BTC loss of 0.37%.
Nonetheless, MSTR ended November up 17.69%, following a 28.97% gain in October. Year-to-date, MSTR surged 242% to November.
MSTR 011223 Daily Chart
Notably, the purchase comes as the markets bet on the SEC approving a batch of BTC-spot ETFs.
BTC-Spot ETF Updates Draw Interest
On Thursday, Bloomberg Intelligence Analysts James Seyffart and Eric Balchunas shared the latest on the BTC-spot ETF race.
Tagged the Bitcoin ETF Derby, Balchunas and Seyffart explored the likely inflows into the BTC-spot ETF market and who could take an early lead.
In a joint note, the ETF analysts had this to say,
“Ark’s spot Bitcoin ETF will likely get a quick $130 million in cash as the firm sells its GBTC stake and instead uses its own ETF for exposure to the cryptocurrency. This potential jump in volume and flows might provide an early edge over rivals – including Blackrock, whose ETF business is 184x the size of Ark’s and a favorite in the spot Bitcoin race.”
Later in the Thursday session, Seyffart shared a potential opening for the SEC to approve BTC spot ETFs, saying,
“Okay, the window for potential spot Bitcoin ETF approval is looking like its gonna be between Jan 5 & Jan 10, 2024 […].“
Coinbase Surged 61.72% in November, Tracking MicroStrategy
In November, Coinbase (COIN) jumped 61.72%. The market reaction to the Binance fine fueled demand for Coinbase shares. Significantly, the gains came despite the ongoing SEC v Coinbase case.
Investors await the court session in January 2024. The SEC and Coinbase will present oral arguments relating to the Coinbase motion to dismiss (MTD). In August 2023, Coinbase filed the MTD, arguing the SEC lacks the statutory authority to regulate crypto exchanges.
Coinbase has a prominent backer in its quest to quash the SEC charges. In August, Senator Cynthia Lummis filed an amicus curiae brief. The brief stated,
“Through this case, the SEC seeks primary influence over economic, political, and legal questions under active consideration by Congress and multiple agencies.”
“The SEC is not suited to the talks of crafting a holistic regulatory framework for crypto assets, particularly through a judicial enforcement action.”
If Judge Katherine Failla grants the MTD, it could significantly affect the US digital asset space. The SEC may even have to dismiss charges against Kraken. A Coinbase win could also end SEC plans to appeal the XRP Programmatic Sales ruling from the SEC v Ripple case.
COIN 011223 Daily Chart
BTC remained above the 50-day and 200-day EMAs, sending bullish price signals.
A BTC move through the November high of $38,490 would support a break above the $39,000 resistance level to target $40,000.
BTC-spot ETF news and regulatory activity will remain focal points.
A break below the $37,600 support level would bring the $36,400 support level into play.
The 14-Daily RSI reading of 61.74 indicates a BTC move to the $39,000 resistance level before entering overbought territory.
BTCUSD 011223 Daily Chart
ETH remained above the 50-day and 200-day EMAs, reaffirming bullish price signals.
An ETH move to $2,100 would support a break above the $2,143 resistance level to target $2,200.
However, a fall through the $2,021 support level would give the bears a run at the $1,926 support level.
The 14-period Daily RSI at 60.68 indicates an ETH move to the $2,143 resistance level before entering overbought territory.
With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.