GLOBAL MACRO
Bitcoin surged toward $100,000, reaching a record $98,400, fueled by optimism over President-elect Donald Trump's pro-crypto stance and the potential for supportive US regulations. The crypto market has gained $900 billion since Trump’s election win, with speculation growing about a White House role dedicated to digital-asset policy. SEC Chair Gary Gensler’s upcoming resignation is expected to ease regulatory pressures. However, uncertainties remain, as Trump's setbacks, such as his failed attempt to appoint Matt Gaetz as attorney general, suggest he may face challenges in fully implementing his agenda. Any signs of stricter regulations could dampen the current optimism in the crypto market.
- MicroStrategy completed a $3b convertible debt offering, the zero-interest notes, maturing in 2029. The conversion rate of 1.4872 shares per $1,000 principal represents a 55% premium over the stock’s recent price. The firm now holds 331,200 BTC worth over $30b, purchased at an average price of $49,874 per coin, with a total cost of $16.5b. Despite its Bitcoin-driven strategy, the stock dropped 20% to $397.28 on Thursday after Citron Research criticized its valuation and disclosed a short position.
- Bitcoin focused ETFs continue to draw inflows with the iShares Bitcoin ETF seeing $7.3b in inflows the past month, pushing total assets to $45.5b.
Chart. BTC at most overbought since March
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