Bitcoin, the largest cryptocurrency in the world, reached an all-time high of over $84,000 on Monday.
Traders who bet against MicroStrategy, a major supporter of Bitcoin, lost more than $1.2 billion between November 6 and November 8, according to Ortex, a data analytics company. These traders have now lost over $6 billion this year.
MicroStrategy (MSTR) has purchased 27,200 BTC for around $2.03 billion at an average price of $74,463 per Bitcoin between Oct 31 – Nov 10 , achieving a 7.3% quarterly yield and a 26.4% year-to-date yield. As of November 10, 2024, the company holds 279,420 BTC, acquired for roughly $11.9 billion at an average of $42,692 per Bitcoin. With Bitcoin currently priced at $82,400, MicroStrategy’s profit is approximately $11.12 billion.
The combined losses from traders betting against other crypto-related companies like Coinbase Global (a crypto exchange), Riot Platforms, MARA Holdings (both crypto miners), and Bitfarms (a blockchain farm operator) totaled about $1.2 billion as of November 8.
Investors who shorted iShares Bitcoin Trust, the largest Bitcoin ETF in terms of assets, lost nearly $37 million since November 6.
Dogecoin ($DOGE) now holds a market cap of $53 billion, surpassing over 303 companies in the S&P 500.
On November 10, Fox Business journalist Eleanor Terrett reported that the Trump transition team plans to focus on pro-crypto candidates for SEC Chair.
The Royal Government of Bhutan recently received 2.96 Bitcoin (BTC) from mining, bringing their total to about 12.562K BTC, worth around $1.02 billion. Blockchain platform Arkham Intel reports that Bhutan received these Bitcoins from Asset Mining and Staking firm Foundry Digital.
In addition to BTC, Bhutan also holds 656.039 Ethereum, valued at $2.06 million. Altogether, Bhutan’s cryptocurrency holdings are worth $1,018,291,675.99, placing it fifth in the world for Bitcoin holdings.
As of November 10, the US has the most Bitcoin with 207,189 BTC, followed by China with 194,000 BTC, the UK with 61,000 BTC, and Ukraine with 46,351 BTC.
Hedge funds that had short positions on Tesla have lost $5.2 billion since Donald Trump’s election victory. Many of these funds started closing their short positions after Musk endorsed Trump in July. As of November 6, only 7% of hedge funds were betting against Tesla, down from 17% in July, with 8% now holding long positions.
In November, U.S. equity funds saw $20 billion in new investments, the largest amount in five months, following Trump’s claim of victory. Small-cap stocks attracted $3.8 billion, marking the largest inflow since March. The S&P 500 also reached a record high, driven by the election result and a Federal Reserve rate cut.
After Trump’s win, currency options trading set records, with $160 billion in contracts traded in one day, according to the DTCC. The U.S. dollar gained strength as options for the euro and the Chinese renminbi spiked. The CME saw $275 billion in foreign exchange trades. Analysts expect the dollar to keep strengthening due to ongoing trade tensions.
After Trump’s election win, hedge funds quickly started buying bank stocks while betting against renewable energy companies, according to a note from Goldman Sachs.
Financial stocks, especially banks and trading companies, were the most favored by investors, who expected less regulation and tax cuts under Trump’s presidency.
Hedge funds focused on U.S. banks and financial companies, including those in consumer finance and capital markets. In Europe, they switched from short to long positions in stocks, while in Asia, they targeted growing markets. Renewable energy companies, particularly U.S. utility stocks, saw the most short bets, with twice as many short positions as long ones.
On the other side, Trina Solar is selling its new solar panel factory in Texas to FREYR Battery for $340 million. The factory, which opened on November 1, will be fully operational by 2025. FREYR, based in Norway but now headquartered in Georgia, will also hold a minority stake in Trina. The deal comes as the U.S. government investigates Chinese companies getting tax breaks for solar manufacturing, with new bills aiming to limit these benefits.
Oppenheimer has raised its S&P 500 2024 price target to $6,200 from $5,900 while keeping its earnings estimate the same. With 90% of S&P 500 companies reporting, third-quarter results are strong.
Update, 12th November 2024
Bitcoin surged to a record $89,000 amid post-election optimism, as traders eye a potential $100,000 milestone by year-end, according to Deribit data. Open interest on this target has reached 9,635 Bitcoin (around $780 million), with Dec. 27 call options already up 30% in value. Institutional interest is also spiking, with Bitcoin and Ether futures open interest rising at CME.
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