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Welcome to the Coin Stories News Block powered

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by BitDeer. I'm Natalie Brunell and in the

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span of just 10 minutes, roughly the time

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it takes to mine a Bitcoin block, I'll

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provide you with concise, insightful updates on Bitcoin

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and the global financial landscape. Everything you need

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to know in one place in one block.

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Let's go. After

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hitting a new all-time high, Bitcoin Euphoria appears

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to be taking a little breather. Bitcoin

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has dropped around 10% to below $65,000

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in recent days and then rebounded to

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the 67-68,000 range. Now,

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it's important to remember, especially for those who

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are new, that pullbacks like this are normal

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during bull markets. Bitcoin does not go up

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in a straight line. Head of

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research at Galaxy Digital Alex Thorn highlighted this

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when he showed how Bitcoin experienced 13 separate

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12% drawdowns from

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the lows in January 2017 to the

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all-time highs made in December of that year. Now,

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this trend also held true for Bitcoin's

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next bull cycle. Thorn showed that Bitcoin

1:01

experienced, once again, 13% to 10% drawdowns

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from the lows in March 2020 to

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the all-time highs made in April 2021.

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So the moral of the story? Larger price

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drawdowns than the one we're experiencing are par

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for the course and for investors with high

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conviction, price dips like this are just

1:18

a great way to scoop up more sats before the

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bull market marches on. And there

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may not be a bigger Bitcoin bull on

1:25

the planet than MicroStrategy's Michael Saylor. Over

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the last few weeks, we've covered on this show

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how Saylor is raising cash to the tune of

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hundreds of millions of dollars through both the equity

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and debt markets to buy more Bitcoin. Saylor

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didn't wait long to tap the debt markets once

1:39

again, announcing late last week another $525 million raise.

1:43

And this came just days after

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MicroStrategy raised $800 million and turned

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around and bought 12,000 Bitcoins. So

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you might not be stacking this dip, but I

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bet you Saylor is. And

1:55

this strategy has, at least in part, contributed

1:57

to an absolute surge in trading volume for

1:59

MicroStrategy. strategy stock. Last week it

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traded more than Amazon's according to

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Bloomberg senior analyst Eric Beltunas and

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when you combine microstrategy's trading volume

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with the ETF Beltunas notes that

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Bitcoin equities are doing more than

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20 billion dollars worth of

2:14

trading volume daily and microstrategy isn't

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the only big entity buying Bitcoin

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right now. BlackRock continues to gobble

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up coins at an impressive pace

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and although this is not a

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true apples to apples comparison because

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microstrategy actually owns Bitcoin whereas BlackRock

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manages an ETF that holds Bitcoin on

2:32

behalf of its customers it's still true

2:34

that these entities appear to be in

2:36

a race to see who can acquire

2:38

the most Bitcoin. Last week BlackRock's ETF

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surpassed microstrategy and now holds more than

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230,000 bitcoins compared to microstrategy's 205,000 and

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it's worth noting

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that both corporations are still behind

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grayscales ETF which holds 380,000. Now

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something else to note with BlackRock last month

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a quant analyst from the company gave a

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presentation at an exclusive event to top

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clients and said that a 28% allocation

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to Bitcoin was quote not unreasonable

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so some clients may have taken

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that recommendation to heart and also

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BlackRock recently announced that it will

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include its Bitcoin ETF in multiple

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funds including its 18 billion dollar

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global allocation fund and its 36

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billion dollar strategic income opportunities these

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are large passive funds and this news

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hints at the next evolution for these

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Bitcoin ETFs issuers including them

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more and more into their passive

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funds which will create a continuous

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flywheel of demand for Bitcoin. I

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read a common narrative during the last bull

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market was that corporations would follow the micro

3:42

strategy playbook and we would see this large

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wave of corporate demand that would drive Bitcoin's

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price higher but unfortunately that has yet to

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materialize in a significant way why well for

3:51

starters it's rare for a leader to have

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control over the voting rights for a large

3:56

corporation which is the case the sailor and

3:58

micro strategy and this gives the

4:00

power to steer the ship and execute on

4:02

a Bitcoin strategy without much opposition. Other

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corporations don't have the same corporate

4:07

governance structure. Secondly, a lack

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of clear accounting rules made it challenging

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for corporations to put Bitcoin on their

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balance sheets. But this all

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changed earlier this year when new accounting rules

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were approved that will make it easier than

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ever before for corporations to buy Bitcoin, and

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we're already beginning to see more evidence of

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corporations embracing it. One story that

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went under people's radars last week was when

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Traeger Grills, a popular grilling company, you may

4:31

have heard about it from Joe Rogan, that

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has more than $600 million

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in annual revenue, announced that it will

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begin accepting Bitcoin as a form of

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payment. And here was the key point.

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They may or may not liquidate the Bitcoin

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upon receipt. So the wording here suggests that

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Traeger is not only interested in accepting Bitcoin

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for payment, but will also consider holding onto

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the Bitcoin if they do receive it. So

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whereas last cycle could be viewed as a

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bit of a disappointment when it came to

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corporate Bitcoin adoption, this cycle is shaping up

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to be different. It's just another reason to

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be bullish for the next couple of years.

5:05

And hey, maybe consider a Traeger Grill for

5:07

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5:36

One consequence of the success of

5:38

the Bitcoin ETFs is that large financial

5:40

institutions appear to be getting increasingly

5:42

bullish on Bitcoin. Global banking

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giant Standard Chartered recently increased its Bitcoin price prediction

5:47

for the end of 2024 from $100,000 to $150,000

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and also updated its price prediction for 2025

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to $250,000 a coin. Standard

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Chartered analysts noted the success of the

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ETFs and the sharper than expected price

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gains this year as the primary reasons

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for increasing their price predictions. And

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it's not just Standard Chartered. A recent JP

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Morgan Securities report estimated that $220 billion could

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flow into the ETFs over

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the next three years, and that

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could be quote, quite impactful to

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Bitcoin's price given the multiplier on

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capital. So what exactly do they

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mean by multiplier on capital? This

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is alluding to the idea that Bitcoin's price

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historically has been extremely sensitive to new

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dollar inflows. In 2021, a Bank of

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America study estimated that it only took

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$93 million of new inflows to

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move Bitcoin's price one whole percent. To

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put this into perspective, the same Bank of America study

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found that it took more than $2

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billion of inflows to move the price of gold

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1%. And this

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recent JP Morgan report estimates the current

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multiplier on capital and Bitcoin at 25x,

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meaning that for every new dollar that

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flows into Bitcoin, it adds $25 to

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its market cap.

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So if the analysis is correct here

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and $220 billion flows into the Bitcoin

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ETFs over the next three years, these

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flows alone could increase Bitcoin's price to

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$280,000 per Bitcoin. Let's

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shift gears now over to the fiat world. Treasury

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Secretary Janet Yellen made headlines last week

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when she admitted in an interview with

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Fox Business that she regrets calling inflation

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transitory. Listen to this. In

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2021, you did say that inflation was transitory.

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Do you regret saying that now? I

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regret saying it was transitory. It

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has come down, but I

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think transitory means a few

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weeks or months to most people.

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So transitory was the messaging from both

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the Federal Reserve and Treasury when it

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came to inflation, and they turned out

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to be very, very wrong. And although

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inflation has come down, CPI still remains

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above 3%, and core CPI,

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which subtracts food and energy, remains closer

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to 4%. Both

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measures are still well above the Fed's 2%

8:02

target, and they don't appear likely to reach

8:04

that level any time soon. But

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to anyone who can connect the dots between printing more

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than $6 trillion and the rise in

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prices everywhere, the sickiness of

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this inflation comes as no surprise. And Americans

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should get used to higher inflation levels considering

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that our government continues to spend money at

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a crazy clip. If adopted, and

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that's a big if, the new 2025

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Biden budget proposal expects to run a

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nearly $2 trillion

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fiscal deficit next year. Larry Laparte

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is one of my favorite people who has been

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hammering the table that we will not be going

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back to a 2% inflation world.

8:37

And I just had him on CoinStories to

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discuss how investors should look at hard money

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like gold and Bitcoin to protect their wealth.

8:44

You may be surprised to hear what he

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says about his gold allocation. All right, I'd

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like to end this news block with just

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a couple of quick headlines and updates. El

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Salvador's president, Naeib Bukele, recently tweeted that the

8:55

country moved about $400 million worth

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of its Bitcoin holdings into a cold wallet,

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calling it, quote, our first Bitcoin piggy

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bank. It was notable because El Salvador

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is now using Bitcoin in a sovereign

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way. The government now has full control

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over the funds without any trusted third

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party. And it's also interesting

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because this tweet revealed that El Salvador

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holds more than 5,500 Bitcoin, which

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is nearly double the amount that was

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previously thought. So if there's one country

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that has benefited significantly from Bitcoin's recent

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rally, it happens to be the smallest

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country in Central America. Lastly,

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the Bitcoin community celebrated a win this past

9:30

week when a UK court deemed that Craig

9:32

Wright is not Satoshi Nakamoto. The judge concluded

9:34

that Dr. Wright is not the author of

9:37

the Bitcoin white paper. He is not the

9:39

person who adopted or operated under the pseudonym

9:41

Satoshi Nakamoto. He is not the person who

9:43

created the Bitcoin network. And he is not

9:46

the author of the initial versions of the

9:48

Bitcoin software. Craig Wright had

9:50

claimed for years that he was the

9:52

inventor of Bitcoin. He's used the slide

9:54

to confuse newcomers and push other projects.

9:56

And He's even sued Bitcoin developers and

9:58

influencers over the years. That's false claim.

10:01

After this ruling, the bitcoin community

10:03

can finally move on from this

10:05

charade. Peter Mccormick, who is one

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of the prominent voices that cried

10:09

Right attacked said it best quote.

10:11

We are also Toshi except for

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Cried Right who is literally the

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only person who is it confirmed

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by law. That's

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it for the new lock Powered by Bit.

10:22

The are your weekly bitcoin and economic news

10:24

update. I'm Natalie for now. Make sure you're

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subscribed to coin stories. You never miss an

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episode. The shows for educational purposes and should

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not be construed as investment. Agree until next

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time.