Crypto Daily is our column tracking crypto market trends, offering timely insights and valuable updates to keep you informed.

Bitcoin Tests $100,000 After Fed Spurs Worst Drop Since September

Bitcoin sank below $100,000 as part of a wider retreat in speculative investments after the Federal Reserve signaled greater caution about the scope for future interest-rate reductions.

The digital asset fell about 1% to $99,800 as of 10 a.m. Thursday in Singapore. That followed a 5.1% drop on Wednesday, the biggest retreat since September. Bitcoin is now trading at $100,950.

MicroStrategy’s Saylor Wants More ‘Intelligent Leverage’

MicroStrategy co-founder and Chairman Michael Saylor says the dot-com-era software maker turned leveraged Bitcoin proxy plans to focus more on fixed-income securities for raising capital to buy the cryptocurrency, once its current fundraising program is exhausted.

Saylor stated the preference in a Bloomberg Television interview when asked about how he expects to fund future cryptocurrency purchases. To date, MicroStrategy has used a mix of new equity and sales of convertible bonds to finance the buying, the latter of which have rewarded owners as its stock rallied toward the price where they become exchangeable for stock.

Bitcoin Rallies for Three Years in a Row Before Tanking in the Fourth Year

Bitcoin historically rallies every three years in a row, followed by a year down.

In 2015, the cryptocurrency was up 49.7%, in 2016 it was up 131.6%, and in 2017 it jumped to an impressive 1,162%. Those rallies were later followed by underperformance. In 2018, Bitcoin was down 72.1%.

Then, in 2019, Bitcoin was up 97.8%, followed by 270.3% outperformance in 2020, and 72.7% in 2021. In 2022, it was down 62%.

In 2023, it is up 146.8%. This year so far, Bitcoin is up 135.5%.

BlackRock ETF Buys First Muni Bonds Issued Through Blockchain

A BlackRock Inc. fund has bought municipal debt issued earlier this year in a first-of-its-kind deal that relies exclusively on blockchain technology.

BlackRock purchased the bonds through an actively-managed exchange-traded fund called the iShares Short Maturity Municipal Bond Active ETF or MEAR, according to a spokesperson for the firm. The fund was founded in 2015 and has roughly $750 million in client assets.

The securities were issued by the city of Quincy, Massachusetts, in April and underwriter JPMorgan. used an application on its private, permissioned blockchain-based platform to facilitate the sale. It was first deal where muni debt was purchased, settled and held all in blockchain on the platform.

MARA Holdings Increases Its Holdings by 1,627 BTC in 8 Hours

According to Odaily Planet Daily, on-chain data shows that MARA Holdings has increased its holdings by 1,627 BTC in the past 8 hours, worth approximately $166 million.

Federal Reserve Chair Powell Addresses Bitcoin Reserve Policy

According to Odaily, Federal Reserve Chair Jerome Powell recently addressed questions regarding the institution's stance on holding Bitcoin reserves. Powell clarified that the Federal Reserve is not permitted to hold Bitcoin and expressed no desire to alter existing laws to accommodate such holdings. This statement underscores the Federal Reserve's current policy and regulatory framework concerning cryptocurrency reserves.

Powell's remarks come amid ongoing discussions about the role of digital currencies in the global financial system. As central banks worldwide explore the potential of digital currencies, the Federal Reserve maintains its position on Bitcoin, emphasizing adherence to current legal and regulatory standards. This stance reflects a cautious approach to integrating cryptocurrencies into traditional financial systems, highlighting the complexities and challenges associated with such a transition.

Bitcoin Spot ETF Flow

The Bitcoin spot ETF with the highest net inflow on Dec 18 was iShares Bitcoin Trust, with a net inflow of $359.63 million, according to SoSoValue.

As of now, the total net asset value of Bitcoin spot ETFs is $115.78 billion, and the ETF net asset ratio (market value compared to total Bitcoin market value) is 5.8%.