From: IE BITCOIN CLUB
Date: November 4, 2024
Subject: Bitcoin Newsletter 37 - US Election = Rocket Fuel?
Dear IE Bitcoin Club members,
Welcome to our bi-weekly newsletter! We continue our journey together to foster understanding about Bitcoin, the principles of sound money, and their economic implications.
Make sure to join our WhatsApp group, and follow us on Instagram & Twitter if you have not already! 🧡
U.S. Election's Impact on Bitcoin?
As the U.S. presidential election on November 5th draws near, the potential impact on Bitcoin is a hot topic. Polls on X indicate a strong preference among Bitcoin supporters for former President Donald Trump, known for his pro-crypto stance, including proposals to establish a national Bitcoin stockpile. This election could sway market sentiment and possibly lead to a surge in Bitcoin's value if Trump is re-elected. However, regardless of the outcome, the election's effects are short-term noise, not altering Bitcoin's underlying fundamentals.
Remember: Bitcoin operates independently of any single nation's agenda. The next time someone claims to be pivotal to Bitcoin's success, take a step back and focus on what truly matters - continuing to accumulate Bitcoin.
MicroStrategy Doesn’t Stop: $42 Billion Acquisition
In their latest earnings call, MicroStrategy announced a plan to buy $42 billion worth of Bitcoin over the next three years. This involves raising $21 billion each through equity and debt to support these purchases. This move is set to solidify MicroStrategy’s role in Bitcoin investments and could notably impact the Bitcoin market. The company’s plan could potentially set a minimum price of $85,000 for Bitcoin, considering their daily buying strategy and assuming no additional major purchases or influxes of capital occur.
We will keep an eye on how this strategy unfolds and its effects on Bitcoin’s pricing dynamics.
Microsoft's Bitcoin Poll
In corporate news, Microsoft's December shareholder meeting will include a vote on whether to incorporate Bitcoin into its investment portfolio. An SEC filing has spotlighted this potential move, signaling a historic moment in institutional adoption if it passes. Despite management's hesitation, influential shareholders, including Bitcoin-friendly entities like BlackRock, could sway the decision, potentially impacting Bitcoin’s price and its acceptance in the business sphere.
Mining Economics
Bitcoin's network health is stronger than ever, with the hashrate reaching a new all-time high of 740 EH/s. The mining difficulty is on the brink of surpassing 100T, highlighting the network's increasing security and resilience. However, the low fee environment, with average transaction fees around 4 sat/vB and a recent hashprice drop to $45/PH/day, presents challenges for miners. A price rally or an increase in transaction fees would be needed to boost profitability.
Fasten your seatbelts – exciting weeks ahead
As 2024 winds down, exciting developments await us. We encourage you to stay active, exchange ideas, and keep informed through our social channels and WhatsApp group as we navigate these dynamic times in the Bitcoin market.
YOUR IE BITCOIN CLUB