
<h2 class="wp-block-heading" id="h-topline">Topline</h2>



<p>Shares of MicroStrategy rallied Monday after the corporate bitcoin holder earned a spot in a key stock index, an apparent institutional vote of confidence in the company whose stock has been red hot amid the cryptocurrency boom.</p>



<h2 class="wp-block-heading" id="h-key-facts">Key Facts</h2>



<p>MicroStrategy stock gained 4% at market open, enjoying a bump from the Nasdaq&nbsp;<a href="https://www.nasdaq.com/press-release/annual-changes-nasdaq-100-indexr-2024-12-13" rel="noreferrer noopener" target="_blank">announcing</a>&nbsp;after Friday’s close that the Virginia-based company would join its Nasdaq 100 stock index next Monday.</p>



<p>The inclusion on the Nasdaq 100, which is the basis for the popular Invesco QQQ exchange-traded fund, should result in about $2.1 billion in net buying of MicroStrategy shares as portfolios adjust to the move, according to Bernstein analyst Gautam Chhugani.</p>



<p>Also boosting the share price of MicroStrategy, which trades under the ticker MSTR, was a weekend rally for bitcoin, which hit a&nbsp;<a href="https://www.reuters.com/markets/currencies/bitcoin-powers-above-105000-first-time-2024-12-15/" rel="noreferrer noopener" target="_blank">fresh</a>&nbsp;all-time high Monday of over $106,000; almost all of MicroStrategy’s underlying value is tied to its bitcoin horde rather than a more traditional revenue-based business model.</p>



<p>MicroStrategy stock has gained a robust 573% in 2024, outstripping bitcoin’s 150% gain and the S&amp;P 500’s 29% return.</p>



<p>Shares of the other two new Nasdaq 100 entrants, Axon Enterprise and Palantir, had less stark reactions, with Taser stun gun maker Axon stock up 1% and analytics-based defense contractor Palantir trading flat.</p>



<h2 class="wp-block-heading" id="h-what-does-mstr-do">What Does Mstr Do?</h2>



<p>MicroStrategy&nbsp;<a href="https://www.microstrategy.com/investor-relations" rel="noreferrer noopener" target="_blank">describes</a>&nbsp;itself as the “world&#8217;s first and largest Bitcoin Treasury Company.” Part of the dot-com boom at the turn of the millennium, MicroStrategy shifted its focus beginning in 2020 from its software business to becoming the most prominent voice advocating for bitcoin as a long-term store of value akin to gold. The company owns 439,000 bitcoins in its strategic reserve, equivalent to $46 billion, or 2.2% of the world’s total bitcoin supply. Some 40% of MicroStrategy’s bitcoins have been acquired over the last 40 days, according to Chhugani, dating back to the election of Donald Trump, an outspoken bitcoin ally. MicroStrategy has taken the rare step of issuing debt to fund its bitcoin purchases. “If you are not a Bitcoin believer, this is scary, but MSTR’s Bitcoin strategy is a long term high-conviction ‘buy &amp; hold’ strategy with the view to hold Bitcoin till it surpasses Gold and beyond,” Chhugani wrote Monday.</p>



<h2 class="wp-block-heading" id="h-contra">Contra</h2>



<p>MicroStrategy certainly has its critics, including investment firm Citron Research, which&nbsp;<a href="https://x.com/CitronResearch/status/1859608654590202325?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1859608654590202325%7Ctwgr%5E285e05254ab72981c19f7dd4fb2010b21edd4c81%7Ctwcon%5Es1_&amp;ref_url=https%3A%2F%2Ffinance.yahoo.com%2Fnews%2Fmicrostrategy-stock-plummets-16-after-new-short-bet-with-bitcoin-trading-at-record-highs-151747801.html" rel="noreferrer noopener" target="_blank">announced</a>&nbsp;a short position on MicroStrategy stock last month, calling the stock “overheated” and “completely detached” from bitcoin fundamentals. With a market capitalization of about $100 billion, MicroStrategy trades more than two times higher than its bitcoin holdings, with its other operations hardly offering much further support, as its software business brought in less than $120 million last quarter.</p>



<h2 class="wp-block-heading" id="h-big-number">Big Number</h2>



<p>2,700%.<strong>&nbsp;</strong>That’s how much MicroStrategy stock has returned over the last five years. That easily outranks the roughly 2,200% and 1,600% gains from the S&amp;P’s top performers during that stretch in artificial intelligence darling Nvidia and Elon Musk-led electric vehicle company Tesla, respectively, according to FactSet.</p>



<h2 class="wp-block-heading" id="h-forbes-valuation">Forbes Valuation</h2>



<p>MicroStrategy’s outspoken founder and chairman Michael Saylor is worth more than $10 billion, <a href="https://www.forbes.com/profile/michael-saylor/">making him</a> the 254th-richest person in the world. His net worth has more than doubled <a href="https://www.forbes.com/billionaires/">since</a> March.</p>


Key Speakers At The Bitcoin 2024 Conference

MicroStrategy Stock Jumps On Nasdaq 100 Inclusion—Bitcoin Giant Up 570% This Year


<h2 class="wp-block-heading" id="h-topline">Topline</h2>



<p>The price of Bitcoin crossed $100,000 for the first time and hit an all-time high of nearly $104,000 late on Wednesday, as the world’s most valuable cryptocurrency continued its post-election bull run as President-elect Donald Trump has vowed to embrace crypto-friendly policies.</p>



<h2 class="wp-block-heading" id="h-key-facts">Key Facts</h2>



<p>Bitcoin hit an all-time high of $103,900 on Wednesday night before settling at around $103,100 just before midnight, up 7.62% in the past 24 hours.</p>



<p>The $100,000 mark was breached for the first time late on Wednesday evening after the token’s price hovered just under $98,000 for nearly two weeks in what initially appeared to be a flattening of the post-election bull run.</p>



<p>Bitcoin’s price has risen more than 36% since election day, when it was valued at around $75,600.</p>



<p>Ether, the second most valuable crypto token, also appeared to be buoyed by Bitcoin’s surge and rose to $3,870 on Wednesday night, up more than 5.4% in the past 24 hours.</p>



<h2 class="wp-block-heading" id="h-news-peg">News Peg</h2>



<p>Earlier on Wednesday, Trump announced Paul Atkins as his pick for the Securities And Exchange Commission’s chair role. Trump alluded to his pro-crypto view in his&nbsp;<a href="https://truthsocial.com/@realDonaldTrump/posts/113595807734621827" rel="noreferrer noopener" target="_blank">announcement</a>, describing Atkins as someone who “recognizes that digital assets &amp; other innovations are crucial to Making America Greater than Ever Before.” Last month, current SEC Chair Gary Gensler&nbsp;<a href="https://www.sec.gov/newsroom/press-releases/2024-182" rel="noreferrer noopener" target="_blank">announced</a>&nbsp;his plans to step down in January. The crypto world reacted to the news of Gensler’s exit with&nbsp;<a href="https://decrypt.co/292941/crypto-industry-bids-farewell-gary-gensler" rel="noreferrer noopener" target="_blank">relief and joy</a>&nbsp;as the SEC under his leadership had undertaken several enforcement actions against crypto companies—including major exchanges.</p>



<h2 class="wp-block-heading" id="h-big-number">Big Number</h2>



<p>133.41%. The rise in Bitcoin’s price since the start of this year, when it was at $44,200.</p>



<h2 class="wp-block-heading" id="h-key-background">Key Background</h2>



<p>The post-election surge in Bitcoin and other cryptocurrency prices has come as Trump has vowed to be the “crypto president,” and move away from the Biden administration’s regulatory actions against the industry. The president-elect has promised to transform the U.S into the “crypto capital of the planet,” and has vowed to “keep 100% of all the bitcoin the U.S. government currently holds or acquires into the future.” The pro-crypto embrace is a major shift in stance for Trump who previously&nbsp;<a href="https://www.bbc.com/news/business-57392734" rel="noreferrer noopener" target="_blank">expressed skepticism</a>&nbsp;about the industry and called it a “scam” and a disaster waiting to happen.</p>



<h2 class="wp-block-heading" id="h-further-reading">Further Reading</h2>



<p><a href="http://www.forbes.com/sites/dereksaul/2024/11/13/bitcoin-price-crosses-90000-for-first-time-ever-amid-trump-crypto-surge/">Bitcoin Price Crosses $90,000 For First Time Ever Amid Trump Crypto Surge</a>&nbsp;(Forbes)</p>



<p><a href="https://www.forbes.com/sites/siladityaray/2024/12/02/ripples-xrp-is-now-the-fourth-largest-cryptocurrency-after-100-billion-post-election-surge/">XRP Is Now The Fourth Largest Cryptocurrency After $100 Billion Post-Election Surge</a> (Forbes)<a href="https://www.forbes.com/sites/siladityaray/"></a></p>


Mid-section of young Asian woman using smartphone in city at night, against illuminated street lights bokeh, working with Bitcoin technologies, investing or trading Bitcoin on cryptocurrency. Business on the go

Bitcoin Surges Past $100,000 For The First Time


<h2 class="wp-block-heading" id="h-topline">Topline</h2>



<p>Bitcoin prices eclipsed $90,000 for the first time Wednesday, the latest milestone for the world’s largest cryptocurrency in its massive post-election rally.</p>



<h2 class="wp-block-heading" id="h-key-facts">Key Facts</h2>



<p>Bitcoin climbed to over $90,000 by about 9:30 a.m. EST, or 2:30 p.m. Greenwich Mean Time (prices for the constantly traded crypto market are most commonly referenced in GMT).</p>



<p>The digital asset quickly ripped further, trading at more than $91,000 by 10 a.m. EST.</p>



<p>Bitcoin is up more than 30% since election night, when it sat below $70,000.</p>



<h2 class="wp-block-heading" id="h-big-number">Big Number</h2>



<p>$1.8 trillion. That’s the total market value of bitcoin, more than doubling since the end of 2023, <a href="https://coinmarketcap.com/currencies/bitcoin/" target="_blank" rel="noreferrer noopener">according</a> to CoinMarketCap.</p>



<h2 class="wp-block-heading" id="h-surprising-fact">Surprising Fact</h2>



<p>Bitcoin crossed the $90,000 threshold just three days after surpassing $80,000 for the first time.</p>



<h2 class="wp-block-heading" id="h-key-background">Key Background</h2>



<p>2024 was already a strong year for bitcoin prices, with the token up 7o% by the end of October. Much of those gains were concentrated early in the year as the Securities and Exchange Commission’s approval of spot bitcoin exchange-traded funds (ETFs), opening the door for new institutional capital into the digital asset. The post-election rally came as crypto traders celebrated the election of Donald Trump, who&nbsp;<a href="https://www.cnn.com/2024/11/10/investing/bitcoin-record-trump/index.html" rel="noreferrer noopener" target="_blank">championed</a>&nbsp;bitcoin and the broader crypto industry on the campaign trail.</p>


Over the shoulder view of young woman making financial plans and investment analysis via laptop and smartphone

Bitcoin Price Crosses $90,000 For First Time Ever Amid Trump Crypto Surge


<h2 class="wp-block-heading" id="h-topline">Topline</h2>



<p>The price of Bitcoin breached $82,000 for the first time ever early on Monday, continuing its post-election bull run as President-elect Donald Trump has promised to bolster the industry while several pro-crypto candidates won down-ballot races.</p>



<h2 class="wp-block-heading" id="h-key-facts">Key Facts</h2>



<p>The world’s most valuable cryptocurrency hit an all-time high of $82,197 in early Monday trading, up more than 19.5% compared to last week.</p>



<p>Bitcoin breached the $80,000 mark for the first time on Sunday after a big weekend rally—breaking the election night high of $75,000.</p>



<p>The price of Ether—the second most valuable crypto token—has risen by an even biggest 28.7% over the past week to $3,165.</p>



<p>Other popular crypto tokens including Dogecoin, Solana’s SOL and Binance’s BNB have also surged in value in the past week—with volatile and popular meme coin DOGE’s price rising by 83%.</p>



<p>The crypto price boom has led to surge in the share price of related stocks like Coinbase—whose price has surged 50% in the past five days and is up another 15.6% in pre-market trading early on Monday to $312.92.</p>



<p>Trump is expected to usher in a new wave of crypto-friendly policies with ease after Republicans flipped control of the Senate Tuesday and are on the brink of maintaining their majority in the House.</p>



<h2 class="wp-block-heading" id="h-how-high-could-bitcoin-prices-by-the-end-of-this-year">How High Could Bitcoin Prices By The End Of This Year?</h2>



<p>While&nbsp;<a href="https://www.forbes.com/sites/dereksaul/2024/11/04/heres-where-analysts-expect-bitcoin-prices-will-head-under-harris-and-trump/">estimates have varied</a>&nbsp;slightly, most analysts agreed a Trump win would lead to a boom in cryptocurrency prices. Bernstein analysts led by Gautam Chhugani said Bitcoin can rise to $80,000 to $90,000 over the next two months if the “pro-crypto candidate” Trump won. Last month, Standard Chartered analyst Geoff Kendrick wrote he expects Bitcoin to hit $125,000 by the end of the year in the event of a Trump win.</p>



<h2 class="wp-block-heading" id="h-key-background">Key Background</h2>



<p>Trump has embraced the crypto industry as a counter to the Securities and Exchange Commission’s stricter regulatory approach under President Joe Biden, vowing to make the U.S. the “crypto capital of the planet.” Trump’s pro-crypto stance marks a reverse course from his previous skepticism of the industry, which&nbsp;<a href="https://www.bbc.com/news/business-57392734" rel="noreferrer noopener" target="_blank">he called</a>&nbsp;a “scam” and a disaster waiting to happen in 2021. Trump has vowed “to keep 100% of all the bitcoin the U.S. government currently holds or acquires into the future,” he told an audience at a bitcoin conference in Nashville in July, and he has repeatedly promised to “fire” SEC Chairman Gary Gensler, who has taken more than 100 regulatory actions against crypto during his tenure, according to&nbsp;<a href="https://www.cnbc.com/2024/11/06/trump-claims-presidential-win-here-is-what-he-promised-the-crypto-industry-ahead-of-the-election.html" rel="noreferrer noopener" target="_blank">CNBC</a>. Trump earned endorsements from crypto leaders, including billionaires Marc Andreessen, Cameron Winklevoss and Tyler Winklevoss, while Vice President-elect, Sen. JD Vance, R-Ohio, is a longtime bitcoin investor. Trump and his campaign have also personally invested in digital currency—Trump’s joint fundraising committee began accepting donations via Coinbase in May, and he debuted his own family&nbsp;<a href="https://www.forbes.com/sites/saradorn/2024/09/16/trump-used-to-think-crypto-was-a-scam---now-hes-launching-his-own-crypto-platform-run-by-his-sons/">cryptocurrency platform</a>, World Liberty Financial, in September.</p>



<h2 class="wp-block-heading" id="h-news-peg">News Peg</h2>



<p>The crypto industry was the largest corporate donor in the 2024 election cycle, according to a report by the progressive consumer advocacy group,&nbsp;<a href="https://www.citizen.org/article/big-crypto-big-spending-2024/" rel="noreferrer noopener" target="_blank">Public Citizen</a>, which found donations from the industry accounted for 44% of all corporate money contributed as of August. The vast majority of the money was funneled through the super PAC Fairshake and two affiliated super PACs, Defend American Jobs, which backs Republicans, and the pro-Democrat Protect Progress. The groups—financed primarily by crypto companies Coinbase and Ripple—spent a combined $135 million supporting industry-friendly candidates in federal races, according to&nbsp;<a href="https://www.nytimes.com/2024/11/06/technology/crypto-industry-spending-election.html" rel="noreferrer noopener" target="_blank">The New York Times.</a>&nbsp;The investment appears to have paid off: as of Sunday, 268 pro-crypto candidates had been elected to the House and 19 in the Senate, according to the non-profit,&nbsp;<a href="https://www.standwithcrypto.org/races" rel="noreferrer noopener" target="_blank">Stand With Crypto</a>, compared to 122 newly elected House members and 12 senators it deems “anti-crypto.”</p>



<h2 class="wp-block-heading" id="h-tangent">Tangent</h2>



<p>Aside from Trump, one of the biggest wins for the crypto industry came in the Ohio Senate race, where blockchain entrepreneur and GOP candidate Bernie Moreno defeated incumbent Sen. Sherrod Brown. Brown served as the chair of the Senate Banking Committee and was a vocal opponent of efforts to loosen cryptocurrencies-related regulations. Coinbase CEO and co-founder Brian Armstrong reacted to the result of the Ohio Senate race by&nbsp;<a href="https://x.com/brian_armstrong/status/1854029871040835614" rel="noreferrer noopener" target="_blank">tweeting</a>, “Being anti-crypto is simply bad politics.”</p>



<h2 class="wp-block-heading" id="h-further-reading">Further Reading</h2>



<p><a href="https://www.forbes.com/sites/dereksaul/2024/11/04/heres-where-analysts-expect-bitcoin-prices-will-head-under-harris-and-trump/">Here’s Where Analysts Expect Bitcoin Prices Will Head Under Harris And Trump</a>&nbsp;(Forbes)</p>



<p><a href="https://www.forbes.com/sites/saradorn/2024/09/16/trump-used-to-think-crypto-was-a-scam---now-hes-launching-his-own-crypto-platform-run-by-his-sons/">Trump Used To Think Crypto Was A &#8216;Scam&#8217; — Now He&#8217;s Launching His Own Crypto Platform Run By His Sons</a>&nbsp;(Forbes)</p>



<p><a href="https://www.forbes.com/sites/saradorn/2024/05/21/trump-campaign-now-accepts-crypto-donations/">Trump Campaign Now Accepts Crypto Donations</a> (Forbes)<a href="https://www.forbes.com/sites/saradorn/"></a></p>


Bitcoin Crosses $82,000 For The First Time—Boosted By Trump’s Win


<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



<p>Set to occur on Saturday is the highly anticipated bitcoin halving event, a somewhat mysterious phenomenon that occurs every four years, which should theoretically provide a major tailwind to bitcoin prices flatlining in recent weeks.</p>



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



<p>The halving event refers to the 50% reduction in the new bitcoins available daily to digital miners who unlock tokens on the blockchain via a complex, energy-intensive process.&#8221;</p>



<p>Halving previously occurred in 2012, 2016 and 2020, and is programmed directly into the bitcoin ecosystem to occur every four years, with the fourth instance widely expected to come Saturday, or within a few days, cutting the amount of bitcoins available for mining each day from 900 to 450.</p>



<p>Between 19 million and 20 million bitcoins now exist, with only&nbsp;<a href="https://www.forbes.com/sites/digital-assets/article/the-21-million-question---is-bitcoin-supply-really-capped/?sh=16f31a4a7984">21 million</a>&nbsp;tokens ever programmed to exist, and halvings are designed to keep the supply of bitcoin limited, and maintaining the decentralized currency’s storage of value.</p>



<p>By lowering the supply, some expect the 2024 halving will drive demand for bitcoin, and therefore its price, which happened in the immediate aftermath of the three other events.</p>



<p>Bitcoin&nbsp;<a href="https://www.coindesk.com/learn/bitcoin-halving-explained/" rel="noreferrer noopener" target="_blank">rose</a>&nbsp;8,069% in the 12 months after the 2012 halving, 284% following the 2016 halving and 559% after the 2020 halving.“It’s pretty much Economics 101” that bitcoin prices go up after halving, according to Sevens Report analyst Tom Essaye, who explained that so long as demand doesn’t decrease and new supply goes down, the “only thing left to move is price.”</p>



<h2 class="wp-block-heading" id="h-contra">CONTRA</h2>



<p>It’s far from a given that bitcoin demand will stay steady or increase, and three halving data points hardly make enough of a trend to definitively declare how bitcoin prices will behave during this halving cycle. It’s often hard to sift through the opinions of bitcoin revilers and zealots, but the former will tell you that bitcoin is already overvalued considering its limited use cases. But bitcoin’s ludicrous market-beating returns in recent years are hard for even the biggest pessimist to dismiss: The $61,000 per token bitcoin fetched Wednesday is roughly seven times its price at the 2020 halving, 90 times its 2016 level and 4,000 times its 2012 level.</p>



<h2 class="wp-block-heading" id="h-so-why-are-bitcoin-prices-down">SO WHY ARE BITCOIN PRICES DOWN?</h2>



<p>Bitcoin is about 17% below its all-time high of $73,768 set last month, with Saturday’s flash&nbsp;<a href="https://www.forbes.com/sites/tylerroush/2024/04/13/bitcoin-plummets-after-iran-launches-attack-on-israel/?sh=14a5c6681f70">10% crash</a>&nbsp;as Iran launched a drone attack on Israel exemplifying the fragile nature of the rally. Bernstein analyst Gautam Chhugani explained to clients Wednesday that it’s actually “new demand catalysts” overlapping with prior halvings that helped drive price increases, explaining that the current cycle’s catalyst actually already happened: January’s approval of spot bitcoin exchange-traded funds, which unlocked billions of dollars of new capital into bitcoin and contributed most strongly to the positive price action, as bitcoin remains up nearly 300% dating back to the beginning of last year. Chhugani expects bitcoin to reach as high as $150,000 next year, a highly bullish forecast that is more than double even its all-time high.</p>



<h2 class="wp-block-heading" id="h-tangent">TANGENT</h2>



<p>Halvings are likely a boon for bitcoin holders, but it’s a major challenge for miners, considering it quite literally halves their potential revenue stream – imagine if regulation allowed McDonald’s to sell Big Macs but no fries. Shares of CleanSpark (up 38%), Marathon Digital (down 36%) and Riot Platforms (down 48%), the three most prominent publicly traded American bitcoin miners, have all underperformed bitcoin this year, Chhugani noted, adding that the halving may actually be a good thing for investors as the pressure can lead to consolidation and more profitable companies.</p>


Crypto in Tbilisi as Devotees Begin to Contemplate a Market Bottom

Bitcoin Halving: Here’s Why Some Expect Prices To Soar


<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



<p>The price of bitcoin dropped by 7% on Saturday over the course of less than an hour, as prices for other cryptocurrencies also sharply declined after Iran launched an attack on Israel.</p>



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



<p>The price of bitcoin was&nbsp;<a href="https://www.forbes.com/digital-assets/assets/bitcoin-btc/?sh=57fc0c8a4357">down</a>&nbsp;7% to $62,570 as of 4:40 p.m. Saturday afternoon, after the cryptocurrency briefly fell to a low on the day of $60,908 minutes earlier.</p>



<p>The price of ethereum fell over 9% to $2,923, while prices for Binance coin and solana dropped 9% and nearly 18%, respectively.</p>



<p>Prices for several less-traded cryptocurrencies dropped by at least 15%, including avalanche (20%), XRP (20%) and the meme token dogecoin (18%).</p>



<h2 class="wp-block-heading" id="h-big-number">BIG NUMBER</h2>



<p>$73,750. That’s what the&nbsp;<a href="https://www.forbes.com/advisor/in/investing/cryptocurrency/bitcoin-down-to-64000-after-record-high/">price</a>&nbsp;for bitcoin was on March 24, the all-time high price for the cryptocurrency.</p>



<h2 class="wp-block-heading" id="h-key-background">KEY BACKGROUND</h2>



<p>Concerns over increased geopolitical conflict in the Middle East have impacted U.S. markets in recent days. The Dow Jones Industrial Average&nbsp;<a href="https://www.cnn.com/2024/04/12/investing/stocks-oil-banks-geopolitics/index.html" rel="noreferrer noopener" target="_blank">dropped</a>&nbsp;by 475 points Friday, after the White House said the U.S. and Israel were preparing for a potential attack by Iran. JPMorgan Chase CEO Jamie Dimon told investors geopolitical conflict was cause for concern, noting it could “be determinative on what happens to the global economy if oil and gas prices go too high,” CNN&nbsp;<a href="https://www.cnn.com/2024/04/12/investing/jpmorgan-chase-bank-earnings-q1/index.html" rel="noreferrer noopener" target="_blank">reported</a>.</p>



<h2 class="wp-block-heading" id="h-further-reading">FURTHER READING</h2>



<p><a href="https://www.forbes.com/sites/jamesfarrell/2024/04/13/iran-launches-drone-attack-on-israel/?sh=343044cb2130">Iran Launches Drone Attack On Israel</a> (<em>Forbes</em>)<a href="https://www.forbes.com/sites/tylerroush/"></a></p>


Iran-Reaction, IRGC Missile And UAV Attack On Israel

Bitcoin Plummets After Iran Launches Attack On Israel


<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



<p>Bitcoin slumped to its lowest price in weeks Tuesday, as the world’s largest cryptocurrency’s all-time high achieved last week looks to be fleeting.</p>



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



<p>Bitcoin fell 7% to below $63,000 by 2 p.m. Greenwich Mean Time (10 a.m. EDT), the time zone typically used for cryptocurrencies as the digital assets are traded constantly.</p>



<p>Tuesday was bitcoin’s lowest price since March 5.</p>



<p>Bitcoin is now down about 15% from its all-time high of nearly $73,800 set last Thursday.</p>



<p>Other cryptocurrencies have similarly slumped, and prices of the next three largest digital assets – ether, Solana and Binance coin – are down more than 7% apiece over the last 24 hours.</p>



<h2 class="wp-block-heading" id="h-what-s-behind-bitcoin-s-price-drop">WHAT’S BEHIND BITCOIN’S PRICE DROP?</h2>



<p>There’s no singular catalyst for the recent bitcoin selloff, but several factors are likely at play. Bitcoin’s price is historically much more volatile than stock prices, which combined with traders’ tendency to take profits following a massive runup in asset prices can cause notable downward swings. There’s also significantly elevated trading activity for bitcoin as spot bitcoin exchange-traded funds (ETFs) flooded institutional money into crypto, with daily dollar-value bitcoin volumes registering their 10 largest values over the last three weeks alone, according to Yahoo Finance&nbsp;<a href="https://finance.yahoo.com/quote/BTC-USD/history?p=BTC-USD" rel="noreferrer noopener" target="_blank">data</a>. Finally, there’s been a noticeable uptick in liquidations for bitcoin futures contracts,&nbsp;<a href="https://www.theblock.co/data/crypto-markets/futures/btc-liquidations" rel="noreferrer noopener" target="_blank">according</a>&nbsp;to Coinglass, which can send bitcoin prices lower as exchanges force users to close their leveraged bitcoin positions.</p>



<h2 class="wp-block-heading" id="h-big-number">BIG NUMBER</h2>



<p>$320 billion. That’s about how much the combined market capitalization of the global crypto market is down over the last week,&nbsp;<a href="https://www.coingecko.com/en/all-cryptocurrencies" rel="noreferrer noopener" target="_blank">according</a>&nbsp;to CoinGecko. Bitcoin’s $180 billion slide accounts for much of the decline.</p>



<h2 class="wp-block-heading" id="h-key-background">KEY BACKGROUND</h2>



<p>Bitcoin’s returns remain eye popping, as its roughly 40% gain over the last six months and 130% year-to-date far outpace those of leading stock indexes. The rally, which erased the steep decline suffered by bitcoin in 2022 as the crypto industry turned sideways amid higher borrowing costs and revelations of high-profile bad actors like FTX’s Sam Bankman-Fried, came as equity prices rose and investors grew excited about the prospects of the ETFs, which went live in January, attracting billions of dollars of fresh capital.<a href="https://www.forbes.com/sites/dereksaul/"></a></p>


Hand holding bitcoin

Bitcoin Falls Another 7%—Down 15% From Last Week’s Record


<p>Last week, on Thursday, February 15, the Ethiopian Government&#8217;s investment arm, <a href="https://eih.et/" target="_blank" rel="noreferrer noopener">Ethiopian Investment Holdings</a> (EIH), signed a memorandum of understanding with Hong-Kong-based West Data Group&#8217;s Center Service PLC to commence mining bitcoin.</p>



<p>The partnership is under a general agreement for a groundbreaking $250 million data mining project &#8220;that is dedicated to establishing cutting-edge infrastructure for data mining and artificial intelligence training operations in Ethiopia,&#8221; according to the EIH. Ethiopia is positioning itself as a leader in the data centre space in Africa, which is estimated to grow to $5.4 billion by 2027, according to Aritzon Advisory and Intelligence.</p>



<p>As noted by Kal Kassa, CEO for Ethiopia at&nbsp;<a href="https://www.hashlabsmining.io/" target="_blank" rel="noreferrer noopener">Hashlabs Mining</a>, “the development is part of the Ethiopian Government&#8217;s aim to drive economic growth by leveraging technology and energy sources to attract foreign investments.”</p>



<p>The EIH has yet to confirm the details of its bitcoin mining operations or respond to requests for comment by other publications. Nevertheless, as the project matures, we can expect to get more clarity from them on the particulars of the arrangement.</p>



<h2 class="wp-block-heading" id="h-bitcoin-mining-in-ethiopia">Bitcoin Mining In Ethiopia</h2>



<p>Despite the ban on crypto trading in the country, 2022 saw the ratification of favorable data mining laws that permit &#8220;high-performance computing&#8221; and &#8220;data mining,&#8221; which is where bitcoin mining falls under. In the last two years, this has opened the floodgates to miners seeking its comparatively positive reception to bitcoin mining, coupled with its abundance of energy sources—chiefly hydro—to its optimal weather and cheap energy costs.</p>



<p>According to data from Bitcoin mining services company Luxor Technologies, in 2023, Ethiopia ranked fourth behind the USA, Hong Kong, and Asia as one of the top destinations for Bitcoin mining rigs. Russian bitcoin mining company Bitcluster has already built the first 120 MW bitcoin mining facility, and companies such as Hashlabs Mining have started building bitcoin mines in Ethiopia for their global clients.</p>



<p>In a few years, according to a forecast by a senior executive at Bitmain and reported by Bloomberg, Ethiopia&#8217;s energy potential could rival Texas&#8217;s generation capacity, which currently accounts for an astounding 28.5% of the US&#8217;s 40% global hash rate.</p>



<p>Nevertheless, bitcoin miners are cautious about the future of regulation in the country. As other regions have shown, bitcoin mining has no permanent regulatory cushion. It is also too early to predict whether Ethiopia will switch its stance on bitcoin mining as Iran and Kazakhstan did when it started competing with domestic energy demand.</p>



<p>Regardless, the government is keen on expanding its inflow of foreign currency to mitigate its economic challenges and views mining as a compelling investment opportunity to realise that goal.</p>



<h2 class="wp-block-heading" id="h-the-future-of-nation-state-mining-in-africa"><strong>The Future Of Nation State Mining In Africa</strong></h2>



<p>With the energy infrastructure yet to match demand on the ground for electricity in several African countries, using bitcoin mining has continued to become an attractive avenue to bring electricity to millions.</p>



<p>In Ethiopia, for example, over 40% of its population, roughly 120 million people, are without electricity. Yet, the country has an installed capacity generation of over 5,000 MW and anticipates a projected additional install capacity generation of ~5,150 MW following the completion of the Grand Ethiopia Renaissance Dam (GERD), the largest hydroelectric project in Africa.</p>



<p>Following the examples of mining projects elsewhere in Africa, such as&nbsp;<a href="https://www.forbes.com/sites/abubakarnurkhalil/2023/05/24/africans-are-pioneering-the-bright-yet-complicated-green-future-of-bitcoin-mining/?sh=6d70d31654ac">Gridless</a>&nbsp;and&nbsp;<a href="https://www.forbes.com/sites/digital-assets/2023/11/20/nigerian-bitcoin-miner-trojan-mining-launch-500kw-hydro-mining-site/">Trojan Mining</a>, Ethiopia too can leverage its abundant excess green energy to provide electricity to its citizens via bitcoin mining. It can serve as a blueprint for other African countries with comparable energy sources to follow and navigate similar economic problems.</p>



<p>Further, the inclusion of bitcoin mining into the Ethiopian economy could contribute $2 &#8211; $4 billion to its GDP, according to data from&nbsp;<a href="https://projectmano.com/" target="_blank" rel="noreferrer noopener">Project Mano</a>, an open collective seeking to educate the government on the potential benefits of bitcoin to the country’s economy.</p>



<p>The economic benefits of Ethiopia strategically leveraging its abundant energy resources for Bitcoin mining are vast and far-reaching. It is only a matter of time before other African nations join the bandwagon.</p>



<p>Bitcoin mining will ultimately be a pivotal tool in addressing the economic challenges of various African countries.</p>


aaaxxxxx

Ethiopia To Become The First African Country To Start Bitcoin Mining


<p><strong>The Himalayan Kingdom quietly spent millions building its own bitcoin mining operation. Now, using satellite imagery, <em>Forbes</em> has uncovered the secret locations of the world’s largest state-owned mines.</strong></p>



<p>Dozens of shipping containers lie hidden behind a hillside south of Thimphu, the Himalayan capital of Bhutan, one of the world’s most isolated nations. Inside, millions of dollars of bitcoin mining machines work unceasingly to amass the valuable currency that now fascinates the country’s monarch — and his kingdom. Under the reign of Jigme Khesar Namgyel Wangchuck, the “Dragon King,” Bhutan has been quietly transformed into a crypto Shangri-La with its government dedicating land, funding and energy to operations like these, which it hopes will avert a looming economic crisis.</p>



<p>But Bhutanese officials have never disclosed the location or scope of these facilities. And when it became the first country to have founded a sovereign bitcoin mine approximately four years ago, few outside of Bhutan knew. Its government only began commenting on its digital asset investments after&nbsp;<a href="https://www.forbes.com/sites/iainmartin/2023/04/15/the-tiny-kingdom-of-bhutan-secretly-held-millions-of-dollars-in-cryptocurrency/"><em>Forbes</em>&nbsp;first reported details</a>&nbsp;of its multi-million-dollar portfolio earlier this year, which were exposed by the bankruptcies of fallen crypto lenders BlockFi and Celsius, with whom it had banked significant holdings.</p>



<p>Now, <em>Forbes</em> has identified the sites of what appear to be four mines run by the Thunder Dragon kingdom, based on sources with knowledge of Bhutan’s crypto investments and confirmed through satellite imagery from Planet Labs, Satellite Vu and Google Earth. They show long rectangular mining units, data center cooling systems and high capacity power lines and transformers that run from Bhutan’s hydroelectric plants to the sites. They have never been publicly disclosed.</p>



<p>One facility — the pilot location for Bhutan’s bitcoin mining efforts, a source said — was built near Dochula Pass, an area that holds cultural and political significance for its 108 memorial shrines dedicated to fallen Bhutanese soldiers. Planet Labs and Google Earth satellite imagery indicate that earthmoving began on the site in 2020 with construction appearing to have finished in late 2022. Aerial views show a cluster of green and white-roofed mining units enclosed by miles of forest. Though just steps from a busy highway, Google Street View suggests it is completely hidden from unknowing passersby. A second source told&nbsp;<em>Forbes</em>&nbsp;that the ground has been leveled along this stretch of road to provide additional cover for the site.</p>



<p>A second mine is located near Trongsa, a town east of Thimphu and ancestral seat of the current Wangchuck dynasty. A third is situated in the heavily forested district of Dagana, near a middle school that caters to children in the rural community.</p>



<p>What appears to be the kingdom’s fourth and largest mine sits on the bones of a contentious — and failed — $1 billion government megaproject called “<a href="https://www.nationalcouncil.bt/assets/uploads/docs/acts/2014/Bhutan_Education_City_Act_2012_eng9th.pdf" target="_blank" rel="noreferrer noopener">Education City</a>,” an effort to establish an international center “for education and knowledge” in Bhutan. The mine runs alongside the country’s first paved road, Phuentsholing-Thimphu national highway, but is concealed behind mountainous terrain. Only transformers and power lines betray the fact that a bitcoin mine now occupies the site. Historical satellite imagery shows that its construction began around December 2021, coinciding with the import of $193 million in “processing units,” according to customs data from the Ministry of Finance. The imports were appended with the same tariff code used by bitcoin mining hardware companies.</p>



<p>Bhutan had pitched the&nbsp;<a href="https://www.nationalcouncil.bt/assets/uploads/docs/acts/2014/Bhutan_Education_City_Act_2012_eng9th.pdf" target="_blank" rel="noreferrer noopener">Education City</a>&nbsp;project to its citizens as a means to secure their future amid rising youth unemployment,&nbsp;<a href="https://kuenselonline.com/migration-of-bhutanese/" target="_blank" rel="noreferrer noopener">surging emigration numbers</a>&nbsp;and brain drain. Roughly 1.5% of Bhutan’s population&nbsp;<a href="https://www.reuters.com/world/asia-pacific/bhutans-jobs-woes-drive-an-exodus-australia-2023-07-28/" target="_blank" rel="noreferrer noopener">emigrated last year</a>&nbsp;to Australia alone, many seeking job opportunities and better pay. In Bhutan, the minimum wage is set at just $45 per month and approximately 12% of its population lives below the poverty line, according to local newspaper&nbsp;<a href="https://kuenselonline.com/labour-ministry-reviewing-the-national-minimum-daily-wage/" target="_blank" rel="noreferrer noopener"><em>Kuensel</em></a>.</p>



<p>Education City was supposed to change that. In 2009, Bhutan’s government paid consulting firm McKinsey &amp; Co. some $9 million to help design a $1 billion &#8220;world-class regional hub for health, education, finance, ICT services.&#8221; Nestled between the confluence of two rivers, the 1,000-acre campus would be a beacon of the country’s experimental Gross National Happiness economic model, and a higher ed hub for Asia. It was to host satellites of some of the most prestigious universities in the world, as well as R&amp;D facilities, laboratories, hotels and event centers. And according to the Bhutanese government, it would promote &#8220;Brand Bhutan,&#8221; creating a &#8220;green and sustainable economy,&#8221; &#8220;culturally and spiritually sensitive industries&#8221; and a &#8220;knowledgeable society.&#8221;</p>



<p>It did none of those things. Plagued by political scandals, mismanagement and innumerable delays, Education City was scrapped in 2014. But left behind were roads, bridges, a water supply and, crucially, power lines — building blocks for a bitcoin mine.</p>


<div class="wp-block-image">
<figure class="aligncenter is-resized"><img decoding="async" src="https://imageio.forbes.com/specials-images/imageserve/655cdfb1f26e45135e0fe07a/Infrastructure-consistent-with-that-of-a-bitcoin-mine-in-the-rural-region-of-Dagana-/0x0.jpg?format=jpg&amp;width=1440" alt="Infrastructure consistent with that of a bitcoin mine in the rural region of Dagana. " style="width:750px;height:auto"/><figcaption class="wp-element-caption">Infrastructure consistent with that of a bitcoin mine in the rural region of Dagana.&nbsp;<small>IMAGE © PLANET LABS PBC</small></figcaption></figure></div>


<p>The kingdom’s sovereign investing arm, Druk Holdings &amp; Investment (DHI), confirmed the mines’ existence. “Sites for bitcoin-mining related facilities in Bhutan have been selected based on the logistical needs of the operations such as power supply and a variety of other factors,” it told&nbsp;<em>Forbes</em>&nbsp;through an outside communications firm. It declined to comment on their locations, however, stating that “DHI does not disclose commercially sensitive details of its operations.”</p>



<p>Bitcoin was a Hail Mary addition to Bhutan’s economic masterplan. The kingdom’s finances have long been underpinned by tourism revenues and the export of a massive surplus of hydropower to its neighbor India. But the Covid pandemic tanked the&nbsp;<a href="https://jp.reuters.com/article/bhutan-tourism-environment-climate-idAFL8N3A93GD#:~:text=In%202019%2C%20before%20the%20pandemic,earn%20the%20country%20foreign%20exchange." target="_blank" rel="noreferrer noopener">$88.6 million</a>&nbsp;annual revenue the country collected from $65-a day visa fees, requiring an urgent course correction. According to multiple sources, Bhutanese government officials began holding talks with bitcoin miners and suppliers sometime in 2020.</p>



<p>DHI, which oversees Bhutan’s bitcoin operations, told local newspaper&nbsp;<a href="https://thebhutanese.bt/dhi-confirms-that-it-is-mining-digital-assets/" target="_blank" rel="noreferrer noopener"><em>The Bhutanese</em></a>&nbsp;that it “entered the mining space” when the cryptocurrency’s price was $5,000 (it was last valued at this level in April 2019 but is now worth $36,000). Bhutan’s own import data and satellite imagery suggest that its operations truly ramped up in 2020. In May, when&nbsp;<em>Forbes</em>&nbsp;asked DHI to confirm that timing, a spokesperson for the fund would say only that a series of bitcoin investments were made “in a period in 2019.” They added that DHI was “currently net positive in our digital asset position.”&nbsp;<a href="https://www.cnbc.com/2022/12/23/bitcoin-price-calls-in-2022-how-the-market-got-it-wrong.html" target="_blank" rel="noreferrer noopener">Bitcoin’s price collapsed</a>&nbsp;from $69,000 in November 2021 to under $17,000 last December.</p>



<p><a href="https://thebhutanese.bt/bitcoin-powers-a-50-hike-for-public-servants/" target="_blank" rel="noreferrer noopener"><em>The Bhutanese</em></a>&nbsp;reported in June that DHI was planning to sell down its bitcoin stockpile to fund a 50% salary hike for government officials worth $72 million, as Bhutan faces an economic and political crisis with a trade deficit running down its&nbsp;<a href="https://thebhutanese.bt/bitcoin-powers-a-50-hike-for-public-servants/" target="_blank" rel="noreferrer noopener">hard currency reserve</a>&nbsp;to just $689 million. (This will cover just 14 months of imports while the country’s constitution requires 12 months of reserves.)</p>



<p>Several sources inside Bhutan told&nbsp;<em>Forbes</em>&nbsp;that the mines are now an open secret, though neither the Bhutanese government nor DHI have formally disclosed their existence. In emails to&nbsp;<em>Forbes</em>, DHI has consistently declined to comment on the scope or financing of its cryptocurrency regime.</p>



<p>DHI, which also operates the nation’s flagship airline, hydroelectric power plants and a cheese factory, does not provide any breakdown of revenues or investment in bitcoin mining in its annual accounts beyond noting it had raised foreign currency bonds to fund the project. Bhutan’s Ministry of Finance has been equally quiet. Outside academics and insiders who specialize in monitoring global bitcoin activity told&nbsp;<em>Forbes</em>&nbsp;that the country’s mining activities remain a conundrum. DHI claimed that it was “not involved in decisions as to the use of funds that DHI pays out to the Government.”</p>



<p>But the kingdom left a breadcrumb trail. Trade data accessed through the Observatory of Economic Complexity, an open source platform that visualizes global trade patterns, indicates that more than $220 million in chips used for bitcoin mining were shipped from China to Bhutan between 2021 and 2022. DHI declined to answer questions about them, citing “NDAs with contractual parties.” And Bhutan’s Ministry of Energy data reveals a massive 63% spike in power usage by industry in 2022.</p>


<div class="wp-block-image">
<figure class="aligncenter is-resized"><img decoding="async" src="https://imageio.forbes.com/specials-images/imageserve/655cdf7af7758dcd00342f24/Green-roofed-units-in-Trongsa--the-ancestral-seat-of-the-Wangchuck-dynasty-/0x0.jpg?format=jpg&amp;width=1440" alt="Green-roofed units in Trongsa, the ancestral seat of the Wangchuck dynasty." style="width:728px;height:auto"/><figcaption class="wp-element-caption">Green-roofed units in Trongsa, the ancestral seat of the Wangchuck dynasty.<small>IMAGE © PLANET LABS PBC</small></figcaption></figure></div>


<p>Meanwhile, Bhutan, which has for years sold off surplus energy to India, has massively ramped up imports, purchasing $20.7 million worth of electricity in 2023, according to&nbsp;<a href="https://kuenselonline.com/growing-domestic-demand-cuts-electricity-export-revenue-by-27-percent/" target="_blank" rel="noreferrer noopener"><em>Kuensel</em></a>. Government officials&nbsp;<a href="https://kuenselonline.com/growing-domestic-demand-cuts-electricity-export-revenue-by-27-percent/" target="_blank" rel="noreferrer noopener">recently</a>&nbsp;warned that this bill would balloon to $72 million over the coming winter with imports needed for five months to cover demand.</p>



<p>The Asian monsoon season means that Bhutan has always experienced droughts when its hydropower plants stand largely idle for three months, requiring it to import electricity from India’s largely coal-powered grid. Bhutan’s investment in bitcoin mining has, however, hinged on reliable access to cheap and clean energy.</p>



<p>“Bhutan prioritises power supply for domestic consumption. Industry and business — including projects related to bitcoin mining — are accorded lower priority,” DHI’s spokesperson said. In the winter months when hydropower generation typically decreases, “mining activity may be shut down subject to electricity availability.”</p>



<p>However, the four state-owned mines&nbsp;<em>Forbes</em>&nbsp;believes it has identified might not even be Bhutan’s largest. In 2022, the country entered a partnership with Singaporean bitcoin mining giant, Bitdeer, which made Bhutan the seat of its Asian expansion. In March,&nbsp;<a href="https://www.planet.com/stories/gedu-XyMPiYu4g" target="_blank" rel="noreferrer noopener">Bitdeer broke ground</a>&nbsp;on a mine in the southern town of Gedu, according to satellite imagery from Planet Labs, bringing 100 megawatts (MW) online in August, the company said. DHI, which owns Bhutan’s national power company, will be supplying electricity to the site. Bitdeer disclosed in a July update that it was already running 11,000 miners and had ordered an additional 15,000 machines. When completed, the 600 MW facility will consume more energy than the rest of the nation,&nbsp;<a href="https://asia.nikkei.com/Economy/Bhutan-puts-Bitcoin-mining-plan-in-motion-to-power-up-economy" target="_blank" rel="noreferrer noopener"><em>Nikkei</em></a>&nbsp;reported.</p>



<p>Recently, Bitdeer staff have been approaching investors at industry conferences such as Mining Disrupt for a $500 million “<a href="https://www.bloomberg.com/news/articles/2023-05-03/bhutan-plans-500-million-fund-for-bitcoin-btc-and-crypto-mining-in-himalayas" target="_blank" rel="noreferrer noopener">green crypto mining</a>” fund. DHI&nbsp;<a href="https://asia.nikkei.com/Economy/Bhutan-puts-Bitcoin-mining-plan-in-motion-to-power-up-economy" target="_blank" rel="noreferrer noopener">estimates</a>&nbsp;it will support 300 to 400 jobs and a new computing sector in Bhutan — echoing the country’s moonshot pitch for the defunct Education City. Bitdeer CEO Matt Linghui Kong told Forbes in a statement that the company is “getting a lot of interest” in the fund and is currently in negotiations with multiple investors who it declined to name.</p>



<p>The new fund and jobs could be desperately needed, with the Asian Development Bank forecasting that Bhutan’s economy would slow to 4.6% this&nbsp;<a href="https://kuenselonline.com/bhutans-economy-to-slow-down-to-4-6-percent-this-year-adb/" target="_blank" rel="noreferrer noopener">year</a>. The government’s own economists called for economic reforms and budget cuts to stave off a&nbsp;<a href="https://kuenselonline.com/bhutans-economy-to-slow-down-to-4-6-percent-this-year-adb/" target="_blank" rel="noreferrer noopener">financial crisis</a>.</p>



<p>For now, Bhutan’s appetite for blockchain-based solutions seems undimmed by these challenges. Earlier this month, on the king and queen’s 12th wedding anniversary, it unveiled an experimental&nbsp;<a href="https://kuenselonline.com/bhutan-national-digital-identity-application-launched-in-thimphu/" target="_blank" rel="noreferrer noopener">decentralized digital identity app</a>. Its first test subject and digital citizen? The crown prince.</p>



<p><em>With additional reporting and satellite imagery analysis by&nbsp;</em><a href="https://www.stimson.org/ppl/eyler/" target="_blank" rel="noreferrer noopener"><em>Brian Eyler</em></a><em>, a senior fellow at the Stimson Center and director of its Southeast Asia Program and its Energy, Water, and Sustainability Program.</em></p>


Bhutan

Bhutan Built A Bitcoin Mine On The Site Of Its Failed ‘Education City’


<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



<p>The price of Bitcoin fell below $26,000 Thursday—its lowest level since June—amid a broader crypto market slump after the&nbsp;<em>Wall Street Journal</em>&nbsp;<a href="https://www.wsj.com/tech/behind-the-curtain-of-elon-musks-secretive-spacex-revenue-growth-and-rising-costs-2c828e2b?mod=hp_lead_pos5" target="_blank" rel="noreferrer noopener">reported</a>&nbsp;that SpaceX has taken a significant write-down on its Bitcoin holdings and sold the cryptocurrency.</p>



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



<p>The price of the world’s most valuable cryptocurrency stood at $26,400 early on Friday, down nearly 8% in the previous 24 hours and 10% compared to last week.</p>



<p>Earlier on Thursday evening, the price of Bitcoin had dropped even lower, to around $25,400 before a slight recovery.</p>



<p>Ether, the world’s second-largest cryptocurrency, also took a similar hit and fell to $1,680—down 6.6% in the previous 24 hours.</p>



<p>Other major tokens like Binance’s BNB, Cardano and Solana are also down more than 6%</p>



<h2 class="wp-block-heading" id="h-big-number">BIG NUMBER</h2>



<p>16%. That’s how much the price of Ripple’s XRP token has fallen in the past 24 hours, significantly worse than all other major cryptocurrencies. XRP’s steeper fall is a result of a federal judge’s&nbsp;<a href="https://www.wsj.com/livecoverage/stock-market-today-dow-jones-08-17-2023/card/judge-in-sec-ripple-case-opens-path-to-partial-appeal-after-july-ruling-Qj9YAsJsOP72ufpmQfCx" target="_blank" rel="noreferrer noopener">decision</a>&nbsp;on Thursday to allow the SEC to partially appeal a&nbsp;<a href="https://www.bloomberg.com/news/newsletters/2023-07-13/what-does-ripple-xrp-ruling-in-sec-case-mean-for-crypto" target="_blank" rel="noreferrer noopener">ruling</a>&nbsp;in its case against Ripple.</p>



<h2 class="wp-block-heading" id="h-key-background">KEY BACKGROUND</h2>



<p>Thursday evening’s crypto selloff began after the&nbsp;<em>Wall Street Journal</em>&nbsp;<a href="https://www.wsj.com/tech/behind-the-curtain-of-elon-musks-secretive-spacex-revenue-growth-and-rising-costs-2c828e2b?mod=hp_lead_pos5" target="_blank" rel="noreferrer noopener">reported</a>&nbsp;that Elon Musk’s SpaceX wrote down the value of its bitcoin holdings by a total of $373 million in the previous two calendar years. The company has also sold off its crypto holdings, the report added, although it is unclear when this sale happened. Musk and his companies have been a key mover of cryptocurrency prices, with the market often seeing significant movement based on the billionaire’s tweets. However, the SpaceX selloff follows a similar move by Musk’s other company, Tesla, which&nbsp;<a href="https://tesla-cdn.thron.com/static/EIUQEC_2022_Q2_Quarterly_Update_Deck_J8VLIK.pdf?xseo=&amp;amp;response-content-disposition=inline%3Bfilename%3D%22tsla-q2-22-update.pdf%22" target="_blank" rel="noreferrer noopener">disclosed in an earnings report last year</a>&nbsp;that it had sold 75% of its Bitcoin holdings.</p>



<h2 class="wp-block-heading" id="h-further-reading">FURTHER READING</h2>



<p><a href="https://www.wsj.com/tech/behind-the-curtain-of-elon-musks-secretive-spacex-revenue-growth-and-rising-costs-2c828e2b?mod=hp_lead_pos5" target="_blank" rel="noreferrer noopener">A Rare Look Into the Finances of Elon Musk’s Secretive SpaceX</a>&nbsp;(Wall Street Journal)</p>



<p>Forbes Daily: Get our best stories, exclusive reporting and essential analysis of the day’s news in your inbox every weekday.Sign Up</p>



<p>By signing up, you accept and agree to our&nbsp;<a href="https://www.forbes.com/terms-and-conditions" target="_blank" rel="noreferrer noopener">Terms of Service</a>&nbsp;(including the class action waiver and arbitration provisions), and&nbsp;<a href="https://www.forbes.com/privacy" target="_blank" rel="noreferrer noopener">Privacy Statement</a>.</p>



<p><a href="https://www.bloomberg.com/news/articles/2023-08-18/bitcoin-plunge-spurs-liquidations-as-spacex-s-token-sale-weighs?srnd=premium" target="_blank" rel="noreferrer noopener">Bitcoin Plunge Spurs Liquidations as SpaceX’s Token Sale Weighs</a> (Bloomberg)</p>


Cryptocurrency Mining In Africa As Poor Sheperdherder Proves A Point

Bitcoin Drops To Lowest Level Since June Amid Wider Crypto Sell-Off

More Than Half Of All Bitcoin Trades Are Fake


<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



<p>Bitcoin suffered its biggest drop in three months on Tuesday, falling nearly 10% in the wake of a worse-than-expected August inflation report, as investors fear the Federal Reserve will raise interest rates for a third time this year, potentially sparking a so-called&nbsp;<a href="https://www.forbes.com/advisor/investing/cryptocurrency/what-is-crypto-winter/">crypto winter</a>.</p>



<h2 class="wp-block-heading">KEY FACTS</h2>



<p><a href="https://www.forbes.com/digital-assets/assets/bitcoin-btc/?sh=4bd808ef4357">Bitcoin</a>&nbsp;continued a months-long fall Tuesday afternoon, dropping 9.35% to $20,304.73, following new Labor Department&nbsp;<a href="https://www.forbes.com/sites/jonathanponciano/2022/09/13/inflation-climbed-83-in-august-slowing-for-second-month-straight-as-gas-prices-plunged/?sh=440a3b3266c5">data</a>&nbsp;that showed an 8.3% rise in consumer prices over the past 12 months ending in August, slowing for the second straight month, but still higher than economists had expected.</p>



<p>Bitcoin had been steadily climbing after briefly&nbsp;<a href="https://www.forbes.com/sites/brianbushard/2022/08/27/bitcoin-drops-below-20000-amid-recession-fears/?sh=11693c4f77f4">dropping</a>&nbsp;below $20,000 on August 27, but is less than a third of what it was at its peak of $67,037 last November.</p>



<p>It’s the largest drop since&nbsp;<a href="https://www.forbes.com/sites/jonathanponciano/2022/08/18/crypto-winter-watch-all-the-big-layoffs-record-withdrawals-and-bankruptcies-sparked-by-the-2-trillion-crash/?sh=6ec3191f3309">June</a>, when bitcoin fell from $28,636 on June 11 to $20.556 on June 16—it continued its downward trend to a low of $19,327 on July 1, and economists warned that a looming recession could erase the progress cryptocurrencies had made during the Covid-19 pandemic, when shares skyrocketed.</p>



<p>Elon Musk-backed cryptocurrency&nbsp;<a href="https://www.forbes.com/digital-assets/assets/dogecoin-doge/?sh=2c9bed213ab3">Dogecoin</a>&nbsp;also fell 5.85% Tuesday, trading at 6 cents, while&nbsp;<a href="https://www.forbes.com/digital-assets/assets/ether-eth/?sh=20ebec4a7b0e">Ether</a>&nbsp;dropped $7.96% to $1,586.92, and crypto broker&nbsp;<a href="https://www.forbes.com/companies/coinbase/?sh=d9d9449699f6">Coinbase</a>&nbsp;dropped 8.61%, to $75.44.</p>



<h2 class="wp-block-heading">KEY BACKGROUND</h2>



<p>Although low interest rates and Covid-19-related government stimulus checks fueled bitcoin’s rise in 2020, two rounds of interest rate hikes from the Federal Reserve this summer made investing riskier. Last month, Federal Reserve Chair Jerome Powell&nbsp;<a href="https://www.forbes.com/sites/jonathanponciano/2022/08/26/down-plunges-1000-points-after-fed-chair-powell-warns-inflation-requires-restrictive-policy-for-some-time/?sh=3d6e98691dd2">warned</a>&nbsp;soaring inflation might “take some time” to ease and require the Fed to act “forcefully.” In the week ending June 17,&nbsp;<a href="https://www.forbes.com/sites/jonathanponciano/2022/08/18/crypto-winter-watch-all-the-big-layoffs-record-withdrawals-and-bankruptcies-sparked-by-the-2-trillion-crash/?sh=6ec3191f3309">outflows</a>&nbsp;from bitcoin totaled roughly $423 million, after falling to an 18-month low, according to crypto firm CoinShares.</p>



<h2 class="wp-block-heading">TANGENT</h2>



<p>Stocks&nbsp;<a href="https://www.forbes.com/sites/madelinehalpert/2022/09/13/dow-plunges-900-points-after-hotter-than-expected-inflation-report/?sh=4932c9342a63">tumbled</a>&nbsp;throughout the day Tuesday in the wake of the Labor Department’s consumer price index report, with the Dow Jones dropping 3.87% to $31,163.99 and the tech-heavy Nasdaq falling 3.76% to $61.70 as of Tuesday afternoon, erasing recent stock gains as the price of food, medical care and shelter increased, despite falling gas prices.</p>



<h2 class="wp-block-heading">FURTHER READING</h2>



<p><a href="https://www.forbes.com/sites/madelinehalpert/2022/09/13/dow-plunges-900-points-after-hotter-than-expected-inflation-report/?sh=65ab9c5f2a63">Dow Sinks 900 Points After Inflation Report Shows Stubbornly High Prices</a>&nbsp;(Forbes)</p>



<p><a href="https://www.forbes.com/sites/brianbushard/2022/08/27/bitcoin-drops-below-20000-amid-recession-fears/?sh=11693c4f77f4">Bitcoin Drops Below $20,000 Amid Recession Fears</a>&nbsp;(Forbes)</p>



<p><a href="https://www.cnbc.com/2022/09/13/bitcoin-slumps-7percent-reversing-gains-after-inflation-report-disappoints.html" target="_blank" rel="noreferrer noopener">Bitcoin slumps 7% after inflation report causes investors to flee risky assets</a>&nbsp;(CNBC)</p>



<p><strong><em>By Brian Bushard, Forbes Staff</em></strong></p>


Digital Composite Image Of Cropped Hands Using Computer Keyboard By Bitcoin Icons

Bitcoin Drops Nearly 10% After Inflation Report—Its Biggest Drop Since June

Business fund investor planning for investment in crisis

Crypto Winter Watch: All The Big Layoffs, Record Withdrawals And Bankruptcies Sparked By The $2 Trillion Crash


<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



<p>The Ukraine government and organizations supporting its fight against a Russia invasion have amassed more than $52 million in cryptocurrency donations—and already deployed at least $14 million—amid an influx of support as the country starts accepting a wider array of tokens and digital assets, including proceeds from the sale of one of the most expensive non-fungible tokens in history.</p>



<h2 class="wp-block-heading">KEY FACTS</h2>



<p>Wallet addresses linked to the Ukrainian government and nongovernmental organizations supporting its military have received nearly 60,000 donations since Russian President Vladimir Putin&nbsp;<a href="https://www.forbes.com/sites/joewalsh/2022/02/23/russia-orders-special-military-operation-in-ukraine/?sh=6145da562321">ordered</a>&nbsp;an invasion of Ukraine early Thursday, including an all-time high of more than 10,000 on Wednesday morning, according to blockchain analytics firm Merkle Science.</p>



<p>The donations include $6.5 million in proceeds from a&nbsp;<a href="https://www.coindesk.com/tech/2022/03/02/ukrainian-flag-nft-raises-675m-for-countrys-war-efforts/" target="_blank" rel="noreferrer noopener">Ukrainian flag NFT</a>&nbsp;auctioned off Wednesday by the Ethereum-based group Ukraine DAO—marking the tenth most expensive NFT ever sold, according to Tom Robinson, chief scientist at blockchain analytics company Elliptic.</p>



<p>As of 12 p.m., wallet addresses directly linked to the Ukrainian government have received about $34 million in bitcoin, ether, tron and polkadot, including $5.8 million from Polkadot founder Gavin Wood and a highly sought-after CryptoPunk NFT worth over $200,000, Elliptic&nbsp;<a href="https://www.elliptic.co/blog/live-updates-millions-in-crypto-crowdfunded-for-the-ukrainian-military" target="_blank" rel="noreferrer noopener">notes</a>; the government also started accepting dogecoin Wednesday morning.</p>



<p>On Twitter Wednesday morning, Ukraine’s Kuna Exchange founder Michael Chobanian, whose firm has been helping the country manage the cryptocurrency received,&nbsp;<a href="https://twitter.com/ChobanianMike" target="_blank" rel="noreferrer noopener">noted</a>&nbsp;about $14 million worth of the donations had already been used, with a majority of spending happening exclusively in cryptocurrency transactions.</p>



<p>In an interview with CoinDesk on Tuesday, Chobanian <a href="https://www.coindesk.com/policy/2022/03/01/ukraines-defense-ministry-decides-where-crypto-funds-are-spent/" target="_blank" rel="noreferrer noopener">said</a> funds have gone to Ukraine&#8217;s military and special forces to help purchase equipment, food and gas, but he stopped short of providing additional specifics &#8220;due to a level of secrecy involved.&#8221;</p>



<p>He also said ether and bitcoin—which have represented about 69% of donations, per Merkle Science—were his “preferred” method for spending, given their ease of convertibility.&nbsp;</p>



<h2 class="wp-block-heading">KEY BACKGROUND</h2>



<p>Ukrainian officials took to Twitter on Saturday to&nbsp;<a href="https://www.forbes.com/sites/jonathanponciano/2022/02/26/ukraine-receives-4-million-in-crypto-donations-within-hours-including-19-million-tied-to-julian-assange-nft-auction/?sh=754901853062">ask</a>&nbsp;for cryptocurrency donations to help in the fight against the Russian military after a number of nongovernmental organizations and volunteer groups successfully raised more than $5 million within days. Coming a week after the Ukrainian parliament&nbsp;<a href="https://www.cnbc.com/2021/09/08/ukraine-legalizes-bitcoin-and-cryptocurrencies.html" target="_blank" rel="noreferrer noopener">passed</a>&nbsp;a bill to legalize cryptocurrencies, the donations to Ukraine “add to a trend of nation-states turning to crypto assets as a means of raising funds,” Elliptic noted in a&nbsp;<a href="https://www.elliptic.co/blog/ukrainians-turn-to-bitcoin-to-crowdfund-the-fight-against-russia" target="_blank" rel="noreferrer noopener">report</a>&nbsp;this month. “Iran is using bitcoin mining as a way to monetize its energy reserves, while North Korea is&nbsp;<a href="https://www.bbc.com/news/world-asia-60281129" target="_blank" rel="noreferrer noopener">believed</a>&nbsp;to be stealing cryptocurrency to support its missile development program.”</p>



<h2 class="wp-block-heading">WHAT WE DON&#8217;T KNOW</h2>



<p>Though Ukraine’s government has made use of a large portion of proceeds, it&#8217;s still unclear whether it has yet sold any of the NFTs it’s received. The CryptoPunk donated Tuesday evening reportedly last sold for about $31,300 in February 2021, roughly one sixth of its latest estimated value.</p>



<h2 class="wp-block-heading">SURPRISING FACT</h2>



<p>Despite the booming support in cryptocurrency, the large majority of aid is still expected to come in the form of traditional currency. On Tuesday, the United Nations put out a&nbsp;<a href="https://www.unhcr.org/news/press/2022/3/621e0aa74/un-seeks-us17-billion-humanitarian-needs-soar-ukraine-neighbouring-countries.html" target="_blank" rel="noreferrer noopener">call</a>&nbsp;to raise $1.7 billion for humanitarian support in Ukraine and for refugees in neighboring countries.&nbsp;</p>



<h2 class="wp-block-heading">FURTHER READING</h2>



<p><a href="https://www.coindesk.com/policy/2022/03/01/ukraines-defense-ministry-decides-where-crypto-funds-are-spent/" target="_blank" rel="noreferrer noopener">Ukraine&#8217;s Defense Ministry Decides Where Crypto Funds Are Spent</a>&nbsp;<em>(CoinDesk)</em>&nbsp;</p>



<p><a href="https://www.forbes.com/sites/jonathanponciano/2022/02/26/ukraine-receives-4-million-in-crypto-donations-within-hours-including-19-million-tied-to-julian-assange-nft-auction/?sh=754901853062">Ukraine Receives $4 Million In Crypto Donations Within Hours—Including $1.9 Million Tied To Pak, Julian Assange NFT Collection</a>&nbsp;<em>(Forbes)</em></p>



<p><a href="https://www.forbes.com/sites/forbesstaff/2022/02/25/bitcoin-donations-to-ukrainian-army-surpass-4-million/">Bitcoin Donations To Ukrainian Army Surpass $4 Million</a>&nbsp;<em>(Forbes)</em></p>



<p><a href="https://www.forbes.com/sites/jonathanponciano/2022/02/28/russia-may-use-cryptocurrency-to-try-and-evade-sanctions-but-heres-why-it-will-be-hard/">Russia May Use Cryptocurrency To Try And Evade Sanctions—But Here&#8217;s Why That Will Be Hard</a>&nbsp;<em>(Forbes)</em></p>



<p> </p>


Sakura Bitcoin Exchange Inc. Store in Shibuya

Crypto Donations To Ukraine Top $52 Million As Funds Pour In From Bitcoin, Ether, PolkaDot And NFTs


<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



<p>Bitcoin tumbled 16% overnight Saturday amid a wider plunge of cryptocurrencies as investors pared riskier bets with financial markets unsettled by the spread of the omicron coronavirus variant.</p>



<h2 class="wp-block-heading">KEY FACTS</h2>



<p>Bitcoin, the No. 1 cryptocurrency by market value, was trading at $47,558.47 as of 9:30 a.m. Saturday, down 16% from a day earlier, according to<a href="https://www.coingecko.com/en" target="_blank" rel="noreferrer noopener">&nbsp;CoinGecko</a>.</p>



<p>It had fallen as much as 20% before recovering some of its losses.</p>



<p>As of Saturday morning, Ether, the second-largest digital token, was off 13.1%; Binance Coin, the third-largest token, was down 11%; Solana, the fifth-largest token, had given up 17.2%, according to<a href="https://www.coingecko.com/en" target="_blank" rel="noreferrer noopener">&nbsp;CoinGecko</a>.</p>



<p>Meme coin Dogecoin <a href="https://www.coingecko.com/en" target="_blank" rel="noreferrer noopener">shed</a> nearly a fifth of its market value and Shiba Inu coin declined 14.9%.</p>



<h2 class="wp-block-heading">KEY BACKGROUND</h2>



<p>The drop in cryptocurrencies came after a volatile week in financial markets. The omicron variant has led countries around the world to restrict travel amid worries that vaccines may not be as effective against the strain. Fed Chairman Jerome Powell indicated earlier this week the central bank could accelerate the tapering of its pandemic bond-buying program, with inflation looking more persistent than policy makers had believed.</p>



<h2 class="wp-block-heading">FURTHER READING</h2>



<p><a href="https://www.wsj.com/articles/bitcoin-price-tumbles-after-wall-street-selloff-11638621435" target="_blank" rel="noreferrer noopener">Bitcoin Price Tumbles After Wall Street Selloff</a>&nbsp;(<em>Wall Street Journal</em>)</p>



<p><a href="https://www.bloomberg.com/news/articles/2021-12-04/bitcoin-plunges-more-than-20-amid-tumble-in-cryptocurrencies?sref=X2kHL3Gj" target="_blank" rel="noreferrer noopener">Bitcoin Plunges Over 20% in Another Sign of Global Market Nerves</a> (Bloomberg)</p>



<p><em><strong>By Lisa Kim, Forbes Staff</strong></em></p>


Tag: Bitcoin

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