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BITCOIN BOX SCORE

Exchange Rate: $89,480
Market Capitalization: $1.77T
Hash Rate (90 days): 673.1 EH/s
Transactions (30 days): 16,921,011
Network Fees (economy): 2 sat/vB
Bitcoin Dominance: 60.77%

What do these numbers mean?

This week, bitcoin's dollar-exchange rate rocketed past $90,000, establishing a new all-time high. Everyone who holds bitcoin that bought it at any time in the past is in profit.

Bitcoin is sure to be the buzz around the Thanksgiving table this year. And the key question will be: What's driving the price?

First, the spot bitcoin ETFs launched this past February were the most successful ETFs in their first few months of being offered, ever. They attracted billions of dollars in inflows and added to demand pressure.

Next, the election. Who would win? Harris, who refused an invitation to speak at the Bitcoin Conference and has made several past statements that were hostile to bitcoin? Or Trump, who famously paid for a cheeseburger with bitcoin at New York's bitcoin-themed bar, Pubkey?

We know how that turned out. And, instead of being a "buy the rumor, sell the news" event, the election triggered bitcoin's dollar exchange rate to rip, with price movement closely tracking Trump’s odds of winning in betting markets.

With Trump’s election and Republican control of Congress comes a real possibility that the Bitcoin Act of 2024 could be passed in the first 100 days of his presidency. The Act authorizes the U.S. Treasury to purchase up to 200,000 bitcoins per year, for five years, to establish a Strategic Bitcoin Reserve. With the U.S. now positioned to become a buyer of last resort, other sovereigns are rumored to be getting in the game in an attempt to front-run the process.

It’s easy to forget another key factor in the price run-up: Hodlers are refusing to sell.

Moreover, bitcoin ETF options are expected to go live in the coming weeks, allowing institutions and individuals to go levered long on bitcoin. This is significant because the additional price discovery and liquidity that bitcoin options will drive in the market may smooth out some of bitcoin’s notorious volatility.

NEWS

🟠 Institutions bet big on bitcoin

A new survey by Sygnum, a digital asset banking group, shows that 57% of institutional investors plan to increase their bitcoin allocations amid a strong bull market.

With bitcoin reaching new highs, 65% of respondents are bullish long-term, and 63% are considering increasing allocations within the next six months. Improved regulatory clarity is encouraging institutions, though some remain concerned about volatility. Over 70% of respondents said ETFs increased their confidence.

A Matter of Time

The data reflects a shift as institutions increasingly view bitcoin as a strategic asset. Nation states next?

📈 AI Firm Genius Group adopts ‘bitcoin-first’ treasury, share price rises 66%

Genius Group, an AI-powered education company, saw its stock jump 66% after announcing a shift to a “bitcoin-first” treasury strategy. The company plans to hold 90% of its reserves in bitcoin, starting with a $150 million offering to acquire $120 million in BTC. Genius Group will also enable bitcoin payments for its EdTech platform.

Following MicroStrategy’s Lead

Inspired by MicroStrategy’s bitcoin strategy, Genius Group aims to leverage bitcoin as a primary store of value, positioning itself as a pioneer among NYSE American-listed companies embracing a bitcoin-focused treasury.

⚡Argentina’s “shock therapy” sparks economic revival

The President of Argentina, Javier Milei, is known to be a supporter of sound money like gold and bitcoin. His aggressive budget cuts and liberalization policies have yielded remarkable results, with inflation dropping, wages rising, and the country achieving its first budget surplus in 12 years.

By dissolving Argentina’s largest tax agency, Milei is curbing bureaucratic inefficiency and promoting private entrepreneurship over government intervention.

Commitment to Reform

Milei’s reforms are part of a broader mission to stabilize Argentina's economy through credible commitments to property rights and free-market principles.

Similar efforts could come to the United States soon as they have been proposed by President-elect Trump to be implemented by the Department of Governmental Efficiency (D.O.G.E.), led by Elon Musk and Vivek Ramaswamy.

While not directly related to bitcoin, it does appear that many values are shared between the bitcoin community and the D.O.G.E. initiative: Transparency, efficiency, and long time preference.

BITCOIN ADOPTION CONTINUES

President-elect Donald Trump nominated two pro-bitcoin personalities to cabinet positions: Pete Hegseth and Matt Gaetz as Secretary of Defense and Attorney General, respectively.

Analysts predict Bitcoin could reach $100,000 in November, driven by historical trends, post-election demand, and recent record highs.

Ark Labs, co-founded by Marco Argentieri, is building a bitcoin layer 2 solution that scales transactions horizontally, allowing users to make low-cost, off-chain payments while providing liquidity opportunities through a “bitcoin-first” interest rate model.

BlackRock's bitcoin ETF IBIT has reached $40 billion in asset in just 211 days, breaking the previous record of 1,253 days and ranking in the top 1% of all ETFs by assets in custody.

A Pennsylvania lawmaker has introduced a bill to establish a "Strategic Bitcoin Reserve," allowing the state treasury to invest up to 10% of its funds in bitcoin as a hedge against inflation.

HOW BITCOIN WORKS

Learn one key idea about bitcoin each week. This week:

Can bitcoin solve the sovereign debt crisis?

The United States is facing an unprecedented sovereign debt crisis. With national debt soaring and economic pressures mounting, traditional solutions like austerity measures and tax hikes may prove inadequate.

But what if there’s another way - a radical, forward-thinking strategy that utilizes digital sound money?

Imagine a scenario where U.S. authorities believe that the fiat-dollar system is sinking and can’t be saved. Here’s how they might utilize bitcoin as a lifeboat.

1. Strategically devalue the currency and suppress bitcoin’s price

First, the U.S. could flood global markets with dollars, triggering inflation worldwide. This, combined with high interest rates, would destabilize rival economies while pushing other nations to seek an alternative to the dollar.

During this period, bitcoin prices could be kept low as speculative “crypto” projects are allowed to collapse, deterring investors and focusing attention on bitcoin’s true value as a store of wealth.

If this sounds familiar, it should, because it played out in 2022 with the collapse of FTX and the attacks on banks that maintained relationships with crypto companies. COVID stimulus was continued far beyond what was necessary to respond to the crisis, triggering extreme inflation. Interest rates were raised dramatically, raising rollover risk to anyone holding short-term dollar-denominated debt.

2. Trigger mass bitcoin adoption

Next, the government could pivot sharply from its past stance, endorsing bitcoin as a legitimate reserve asset.

With BlackRock and other major institutions introducing bitcoin ETFs to the market, the U.S. could unlock the ability of pension funds, corporations, and individuals to add bitcoin to their portfolios. As adoption swells, bitcoin’s value would skyrocket, creating a unique hedge against the dollar’s decline.

Since the ETFs were approved this past winter, we have seen the fastest inflows of any ETF that has ever been launched before. Now, traders, pension funds, family offices, and tax-advantaged account holders all have access to bitcoin price exposure.

3. Monetize the debt

Here’s where things get really weird. After the U.S. establishes a strategic bitcoin reserve, which may happen in the next quarter or two, its next move could be to monetize its debt and allow its dollar liabilities to devalue against its bitcoin holdings. If bitcoin were to reach multi-million-dollar valuations, the U.S. could theoretically wipe out its national debt through bitcoin's appreciation alone. While the dollar hyperinflates, large U.S. financial institutions and companies would have their wealth preserved through virtue of their bitcoin holdings.

4. A new era of fiscal responsibility and economic freedom

With bitcoin established as a global reserve asset, fiscal responsibility would become necessary. Bitcoin’s fixed supply prevent reckless spending and currency debasement, forcing a return to sound money principles.

The U.S. would reorient itself toward investing in long-term, ambitious projects in science, engineering, energy, and architecture, while the dollar takes a backseat to bitcoin as the dominant reserve currency.

If even a fraction of this vision comes to pass, it could lead to a global race to accumulate bitcoin – a "bitcoin stack-off” – where the real winners are those who acted first.

Too bullish?

On The Bitcoin Standard Podcast, our own Dave Birnbaum talks about how Coinbits.app is using bitcoin to build an innovative operating system for money. Listen now: Spotify | YouTube | Apple | Fountain

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COIN CHECK

Which nation-state was the first to begin accumulating bitcoin at scale?

1. Argentina

2. The United States

3. El Salvador

4. China

Check your answer at the end of the page.

FROM THE MEME POOL

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ANSWER

3. El Salvador adopted bitcoin as legal tender in September 2021, becoming the first country to do so. This policy allows businesses to accept payments in bitcoin, and it mandates that all economic agents accept it as payment for goods and services, unless unable to for technological reasons.

   El Salvador also invested in bitcoin as part of its national reserve strategy, purchasing several hundred bitcoins since the policy's inception. The government has also initiated the "Bitcoin City" project, which is planned to be funded by bitcoin-backed bonds and powered by geothermal energy from the country's volcanoes, emphasizing a vision of sustainable and innovative financial growth.

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