The Breakdown First Five - Tuesday, March 12, 2024

Welcome back to The Breakdown First Five — the 5 most interesting and/or important stories in bitcoin, crypto, and markets to start your day.

5. $72K All Through the Night

Bitcoin held onto all time highs throughout the night, validating the $72,000 price level in each time zone. Monday’s price action had surprisingly few liquidations, suggesting that although futures open interest is at all time highs, leverage is under control. Bitcoin has now surpassed Silver as the eighth largest global asset in terms of market cap, reaching $1.4T for the first time.  

4. Record Inflows

Coinshares reported record inflows into worldwide crypto funds last week. $2.7B was added, with US-based spot Bitcoin ETFs accounting for 95% of flows. Last week saw record volume at $43B, around a 50% increase from the prior week. AUM is at record highs of $94B, around 3% of total crypto market cap. The most amazing statistic is that annual inflows are set to beat 2021’s record next week. Record annual inflows into crypto funds and it’s only been 3 months. 

3. Biden Admin Tries Again on Mining Tax

For the second year in a row the Biden administration has proposed a 30% excise tax on electricity used in Bitcoin mining. The policy goal remains unclear, Texas miners appear to have stabilized the grid and driven down electricity costs for residents. The administration claims the tax will reduce the deficit by $7B, which seems relatively insignificant. All the tax seems to do is confirm that Democrats want to drive the crypto industry offshore. 

2. Saylor: Bitcoin is a “Billion Dollar Building in Cyberspace”.

Michael Saylor was given 13 minutes to proselytize Bitcoin on CNBC and he made full use of it. Saylor dismissed the possibility of government attack and the lack of payments adoption, urging hosts to think more about the implications of digital property rights. He said that Bitcion is the only asset that can store wealth for 100 years. The Saylor talking points were familiar, but the mainstream audience is far larger than usual. Eating Gold? Bitcoin is eating everything.. 

1. Trump Had Fun with Crypto

Trump’s view on crypto and Bitcoin are rapidly softening. The former President called in to Squawk Box, telling them that he’s having fun with crypto. Trump said he hadn’t bought Bitcoin, but was astounded at how many people had been paying him using these “crazy new currencies.” While Trump still views crypto as in a competition with the dollar but he said he wasn’t sure he’d want to “take it away at this point.”