Today’s headlines:
- After a weekend pullback, Bitcoin price rebounds above $91,000.
- Goldman Sachs becomes 2nd largest institutional holder of Blackrock’s IBIT.
- Japan’s Metaplanet announces $11.3M bond issuance to buy more bitcoin.
- An OG Bitcoin investor turned $120 into $178M.
$BTC has been trending up throughout late October and into November. Over the past month the price of Bitcoin is up +34.31%.
Figure 1: Bitcoin price over the past 4 weeks.
Over the the last 7 days price has been ranging in the low $90,000 area, likely due to some selling pressure as price approaches the big psychological number of $100,000.
This strong performance from $BTC in the first half of November means that over the past year Bitcoin is now up a total of +140.52%.
Figure 2: Bitcoin performance over the past 12 months.
The Big Story
Goldman Sachs reveals $710M holding in bitcoin ETFs
Goldman Sachs has for many years been skeptical of Bitcoin and other digital assets. However, they have now changed their tune. In a recent SEC filing, it was revealed that the bank now holds $710M in Bitcoin ETFs.
The majority of their holdings are in the BlackRock IBIT ETF, which has seen exceptional growth in recent months.
The move is likely a result of pressure from Goldman Sachs customers demanding exposure to Bitcoin.
There is now clear evidence of institutions buying into the spot bitcoin ETFs as a way to gain exposure to the asset. More major institutional banks will likely reveal their holdings in the coming months, especially in light of the new pro-Bitcoin Trump government coming into power in January.
Daily Flows into the spot Bitcoin ETFs have continued to soar in recent weeks. The consistent green candles are reminiscent of the performance at the start of the year around the initial launch of the spot Bitcoin ETFs.
However, in terms of positive daily inflows, new records were broken earlier this month as $BTC rallied up to +$90,000 and daily inflows of +$1.3B were achieved.
Figure 3: Bitcoin ETF Daily Flows (USD).
A key contributor to the overall performance of the spot Bitcoin ETFs is BlackRock’s IBIT, whose inflows are shown by the yellow segment of the chart below.
Figure 4: Bitcoin ETF Cumulative Flows.
BlackRock’s IBIT has now received +$30B of net inflows since its inception and it shows no signs of reversing that trend.
These flows have contributed to the successful year that Bitcoin price has had to date. It is now looking like Bitcoin will post 3 positive green months in a row with September, October, and November 2024 all posting net positive gains.
Figure 5: Monthly performance of Bitcoin by year.
Key Chart
Each week, our BM Pro Analysts hand-pick a must-see chart for you. This week:
Bitcoin MVRV Momentum
Figure 6: MVRV Momentum
What it is:
- Definition: MVRV (Market Value to Realized Value) Momentum is an indicator that compares the current market capitalization (Market Value) with the realized capitalization (Realized Value), a measure of the average price at which each bitcoin last moved.
- The ratio between these two metrics (orange line on the chart) then has a yearly moving average applied to it (purple line on the chart).
Why it is useful for investors:
- Market Sentiment Analysis: It helps investors understand whether Bitcoin is overvalued or undervalued compared to its "fair value," which is inferred from when coins last changed hands.
- When MVRV is trending ABOVE its 1-year moving average line, this indicates that it is experiencing bullish expansion and price can rally upwards.
- When MVRV falls BELOW its 1-year moving average, this tends to be bearish and can result in a period of $BTC ranging or falling in value.
What it is showing right now:
- After a period of ranging below the moving average, MVRV broke out above its 1-year moving average and is now rallying to the upside, highlighting that we are in a bullish market phase.
This chart is available for Advanced and Professional members on Bitcoin Magazine Pro here. If you haven’t subscribed yet, you can subscribe here.
The Bitcoin Magazine Pro Team.