First Mover Americas: Bitcoin Hits $38.8K for First Time in Over a Year

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Bitcoin rose to $38,800 for the first time since May 2022 during European morning hours on Friday, continuing a strong multimonth run buoyed by expectations of growing institutional demand. The cryptocurrency is up around 2% on the day, having retreated slightly to about $38,600. Global stock markets also witnessed gains, with futures of U.S. gauges S&P 500 and Dow Jones adding 0.17% and Europe's Stoxx 600 advancing 0.52%. The price jumps come as euphoria around a planned spot bitcoin exchange-traded fund (ETF) in the U.S. heats up and on-chain behavior suggests a significant amount of the asset has been moved to cold storage – indicating demand and a lack of imminent sell pressure.

Microstrategy (MSTR), the largest corporate holder of bitcoin (BTC), boosted its holdings in November, buying some 16,130 BTC, worth around $608 million at Thursday's prices. The Michael Saylor-founded software developer bought the bitcoin for around $593.3 million in cash at an average price of about $36,785 apiece, according to a regulatory filing. It now holds 174,530 BTC bought at an average of about $30,252 per coin. The November purchases mark an acceleration in the firm's bitcoin buying activities. As of end-October, MicroStrategy held 158,400 BTC, having acquired 6,607 BTC since the beginning of the third quarter. It's now increased its holdings by over 10% in a month.

The Brazilian Senate approved new income-tax regulations that could mean citizens will face paying up to 15% on earnings from cryptocurrencies held on international exchanges, Yahoo Finance reported Thursday. The regulation, if sanctioned by President Luiz Inacio Lula da Silva, could be effective as of Jan. 1. The bill has been approved by the Chamber of Deputies. Those affected will be Brazilians earning more than $1,200 from foreign exchanges and investment funds with a single shareholder. According to Yahoo Finance, the government set a revenue target of $4 billion for these taxes in the new year.

Chart of the Day

• The chart shows bitcoin's price has risen by 35% since mid-October while the U.S. 10-year Treasury yield has declined by roughly 70 basis points to 4.3%.
• The decline in the so-called risk-free late likely paved the way for investors to cheer the expected launch of a spot BTC ETF early next year.
• Source: TradingView.

- Omkar Godbole

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