Bitcoin price correction to $92.000 attributed to long-term hodlers, not ETFs
Recent on-chain data reveals that Bitcoin’s price correction, which saw its value drop over 5.6% in the past 24 hours to $92,774 as of November 26, is driven by long-term holders, or “hodlers,” rather than institutional investors or exchange-traded funds (ETFs). Despite initial speculation, analysts emphasize that the selling pressure originates from within the Bitcoin ecosystem.
Eric Balchunas, a senior ETF analyst at Bloomberg, highlighted this phenomenon in a November 25 post, noting that significant Bitcoin purchases, such as Michael Saylor’s recent $5 billion acquisition, have not resulted in substantial price increases. This pattern parallels observations about ETF flows, which have absorbed considerable selling pressure without significantly moving the market. “The call is coming from inside the house, it’s long-term hodlers,” Balchunas stated.
Bitcoin’s correction followed its historic monthly high on November 22, when it surpassed $99,000 for the first time. While some analysts remain optimistic about Bitcoin reaching $100,000 by the end of the month, the current dip underscores the influence of hodler activity.
Crypto trader and analyst Kyle du Plessis provided further insights, noting that long-term Bitcoin holders sold approximately 128,000 BTC, while U.S. spot ETFs absorbed nearly 90% of this selling pressure. This strong institutional demand continues to support Bitcoin’s broader rally, maintaining momentum toward the $100,000 milestone.
The correction is also seen as a healthy development for Bitcoin’s market sustainability, especially given the increasing leverage in cryptocurrency markets. On November 12, Kris Marszalek, CEO of Crypto.com, warned that the market might need to undergo deleveraging before Bitcoin can confidently breach the $100,000 mark.
However, this correction has not yet led to significant deleveraging. Data from CryptoQuant shows Bitcoin’s estimated leverage ratio across all exchanges remains at 0.24, a level not seen since August 2023. This sustained leverage indicates a potential risk of volatility but also highlights the resilience of Bitcoin’s current rally.
Overall, the correction driven by hodlers, combined with strong institutional demand, reflects a dynamic interplay of market forces. While challenges remain, the outlook for Bitcoin achieving new milestones remains cautiously optimistic.
Source: Cointelegraph
Rumble allocates up to $20 million to bitcoin as part of treasury diversification strategy
Rumble, a video-sharing and cloud services platform, announced on November 25, 2024, its plan to allocate up to $20 million of its excess cash reserves to Bitcoin. This move highlights Rumble’s commitment to cryptocurrency adoption and its belief in Bitcoin as a strategic asset.
The initiative aligns with the company’s expansion into the cryptocurrency space and positions Bitcoin as a hedge against inflation. Rumble Chairman and CEO Chris Pavlovski emphasized Bitcoin’s advantages over traditional currencies, stating, “Bitcoin is not subject to dilution through endless money printing, making it a valuable addition to our treasury.” Pavlovski also expressed enthusiasm for strengthening Rumble’s ties with the crypto community and advancing its goal of becoming a leading platform for video and cloud services tailored to crypto users.
Rumble views Bitcoin adoption as being in its early stages, spurred by a crypto-friendly U.S. presidential administration and growing institutional interest. The timing and extent of Rumble’s Bitcoin purchases will depend on market conditions, Bitcoin’s trading price, and the company’s financial needs. Management retains the flexibility to adjust, suspend, or discontinue the strategy as necessary.
This decision underscores Rumble’s forward-looking approach and its intention to leverage Bitcoin’s unique properties to enhance its financial strategy while appealing to the rapidly expanding cryptocurrency ecosystem.
Source: Amazonaws
Justin Sun becomes largest investor in Trump’s crypto project
Justin Sun, the founder of the Tron blockchain, has emerged as the largest investor in Donald Trump’s cryptocurrency project, World Liberty Financial (WLFI), following a $30 million purchase of WLFI tokens. This acquisition brings total WLFI sales to $52 million, though still far from the project’s ambitious $300 million goal.
Sun’s investment marks a significant milestone for the project, which had struggled with sluggish sales since its launch in mid-October. The restrictions on token sales — limited to non-US persons and accredited US investors — and the non-transferable nature of the tokens have been cited as barriers to broader adoption. Prior to Sun’s involvement, only $20 million worth of tokens had been sold.
The purchase was confirmed through a wallet linked to Sun’s crypto exchange HTX (formerly Huobi), which acquired 2 billion WLFI tokens at $0.015 each. Sun expressed his enthusiasm in a November 25 post, stating that Tron is committed to supporting the project and “leading innovation.”
This investment triggers payouts to Trump and his family. According to the project’s “gold paper” (white paper), Trump’s company, DT Marks DEFI LLC, is entitled to 75% of net revenues after $30 million in sales, a milestone now achieved. Donald Trump is listed as the platform’s “chief crypto advocate,” with his sons Eric, Barron, and Donald Trump Jr. serving as “Web3 ambassadors.”
The project aligns with Trump’s campaign promises to position the US as a global crypto hub while easing regulatory pressures on the industry. However, Sun himself faces scrutiny from US regulators. In March 2023, the SEC accused him of selling the Tron (TRX) token as an unregistered security and engaging in wash trading to inflate its price. Sun denies these allegations.
Meanwhile, Tron’s TRX token has experienced a 5.5% drop over the past day, falling below $0.20. Despite being up 84% this year, TRX remains 15% below its January 2018 peak of $0.23.
Sun’s eccentric reputation continues to make headlines. On November 21, he purchased a controversial artwork — a banana taped to a wall — for $6.2 million, stating plans to eat it. While his investment in WLFI may signal confidence in the project, it remains to be seen whether the initiative can overcome its challenges and achieve its lofty sales targets.
Source: Cointelegraph