November 07, 2024 | Read Online

The Golden Bull Run Begins as Bitcoin Hits New High at $76,000

Plus Republicans Push for Bitcoin Strategic Reserve with One Million BTC Plan

The Breakdown First Five - Thursday, November 7, 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.

The Golden Bull Run Begins as Bitcoin Hits New High at $76,000

5. Fed Day

A 25 basis point cut is fully priced in for today’s FOMC meeting with another cut expected in December. Powell has been clear throughout the campaign that the Fed is apolitical and won’t react to the election. He went so far as to say they won’t change policy in anticipation of tariffs and tax cuts. The expectation is that the Fed will stay the course into inauguration day, reacting to macro shocks and data as it comes in. The cutting cycle remains in play.

fejau @fejau_inc

Powell will still cut tomorrow. To change course this late in the game opens up too many political can of worms. He needs to stick to what they guided and not let it seem like they’re being reactionary to fiscal and panicky

3:27 PM • Nov 6, 2024

308 Likes 16 Retweets

10 Replies

4. Crypto Funds are Back

After years in the wilderness, crypto funds had their phones ringing off the hook yesterday. Dan Tapiero of 10T said, "We have 300 investors in our funds. 30-50 suddenly want to talk this morning about how to get more exposure.” Startups are also rethinking their plans to leave the country or maybe even return. It’s a new day for crypto in America.

Tom Dunleavy @dunleavy89

Every allocator got caught flatfooted this AM with how underexposed they are to crypto.

Expect the next 6-12 months to be a massive catch up trade not only in liquids but also in venture.

2:13 PM • Nov 6, 2024

14 Likes 1 Retweet

0 Replies

3. ETFs Ripping

ETF investors rushed back to Bitcoin, trading over $6B in volume yesterday. Blackrock set a new volume record with $4.1B. Flows were incredibly strong, with $622M worth of inflows. Blackrock reports inflows on a one day lag, so their $69M outflow was actually due to Tuesday’s de-risking. The Trump trade is on and tradfi is choosing Bitcoin.

Eric Balchunas @EricBalchunas

Replying to@EricBalchunas

Remember the last time we saw volume spike during a rally? That was a precursor to the recent flow-athon, $IBIT alone took in $1.8b over next few days. Not saying it's guarantee but i'm fan of patterns and it fits pattern.

tw profile: Eric Balchunas Eric Balchunas @EricBalchunas

$IBIT traded $3.3b today, biggest number in 6mo, which is a bit odd bc btc was up 4% (typically ETF volume spikes in a downturn/crisis). Occasionally tho volume can spike if there a FOMO-ing frenzy (a la $ARKK in 2020). Given the surge in price past few days, my guess is this is… x.com/i/web/status/1…

2:57 PM • Nov 6, 2024

231 Likes 14 Retweets

5 Replies

2. Bitcoin Strategic Reserve

The most bombastic promise of the campaign was establishing a Bitcoin strategic reserve. With control of Congress seeming likely, Republicans actually have a path to making it a reality. Cynthia Lummis is all in, declaring that it will happen on Twitter. Her plan is much larger than Trump’s, buying one million BTC and holding it for 20 years. Bitcoin strategists with links to the Trump camp are taking this proposal seriously and urging a fast decision.

Senator Cynthia Lummis @SenLummis

WE ARE GOING TO BUILD A STRATEGIC BITCOIN RESERVE 🇺🇸 🇺🇸 🇺🇸

5:05 PM • Nov 6, 2024

75.3K Likes 13.8K Retweets

2.82K Replies

1. The Golden Bull Run Begins

One day is all it took for Bitcoiners to declare that a massive bull run had begun. Bitcoin hit a new high of $76,000 yesterday and many expect this pattern to continue into the end of the year. With the pall of the Democrat crackdown lifted, risk is on, regulatory concerns have dissipated and crypto is an investable asset class once again.