Bitcoin Could Bring Microsoft ‘Next Trillion Dollars’ in Value
Bitcoin Could Bring Microsoft ‘Next Trillion Dollars’ in Value
Over the past week the price of Bitcoin suffered a significant drop to around $65,000 before it started recovering, with the cryptocurrency now moving back to the $69,000 mark to be down just 0.3% over the last seven-day period.
Meanwhile the S&P 500 index, the stock market’s benchmark index, was relatively flat over the same period, as geopolitical tensions and inflationary pressures keep on weighing on investors.
Gold, the precious metal Bitcoin is often compared to a digital version of, moved up 0.9% over the past week as central banks keep accumulating the precious metal. Demand for the safe haven has been soaring, helping gold move up 33% year-to-date.
Bitcoin, on the other hand, is up more than 62% year-to-date and open interest for the cryptocurrency recorded a new all-time high on October 19 according to CCData, hitting $45.8 billion. The lion’s share of open interest was captured by institutional exchange CME, accounting for 31.1% of the total.
Bitcoin Could Bring Microsoft ‘Next Trillion Dollars’ in Value, Michael Saylor Suggests
The co-founder and executive chairman of Nasdaq-listed business intelligence firm MicroStrategy, Michael Saylor, has told Microsoft CEO Satya Nadella eh could help the tech giant make the “next trillion dollars for MSFT shareholders.”
Saylor tagged Nadella in a post on the microblogging platform X, and added along an image with a recent proposal for Microsoft shareholders to weigh in on adding Bitcoin to the company’s balance sheet.
While the proposal, put forth by the National Center for Public Policy Research (NCPPR), has garnered attention, Microsoft’s board of directors has recommended voting against it. The company’s board argues that it has already evaluated many investment opportunities, including Bitcoin.
The NCPPR’s rationale for the proposal centers on the success of Nasdaq-listed business intelligence firm MicroStrategy’s Bitcoin investment strategy, which saw it outperform Microsoft by over 300% this year on the market even as it conducted a “fraction of the business” of the tech giant.
MicroStrategy has 252,220 BTc on its balance sheet worth around $17.3 billion. The proposal points out that Microsoft has $484 billion in total assets “the plurality of which are US government securities and corporate bonds that barely outpace inflation,” and argues that corporations have a “fiduciary duty” to consider “diversifying their balance sheets with assets that appreciate more than bonds, even if those assets are more volatile short-term.”
$473 Billion Debt Increase in Just Three Weeks Pushes U.S. National Debt to Unprecedented Levels
The total U.S. Federal debt grew by a whopping $473 billion over the past three weeks to reach a record $35.8 trillion, meaning that the country has taken on $1,450 of debt for every American in that same period.
The rise mans that the U.S. now holds “a record $103,700 of debt for every American.” On top of that, interest payments this year have reached $1.16 trillion, meaning it’s the first-ever year in which the figure surpassed $1 trillion, with the country paying $3,360 for every American during 2024’s fiscal year.
The US deficit spending, according to economics outlet Kobeissi Letter, as a percentage of its Gross Domestic Product (GDP), is now once again at “World War 2 levels,” with the outlet noting that “unsustainable is an understatement” when referring to the situation.
As CryptoGlobe reported, the growing debt is coming at a time in which the U.S. Federal Reserve is attempting “something unprecedented” as it moves to a no landing scenario – in which the economy avoids a downturn – as inflation dropped by over 5.8% in the last two year, in the biggest drop since the 1980s.
The drop is beyond that of the 2008 Financial Crisis and has “never been seen outside of recessions.” The interest rate cuts and the Federal Reserve’s course is notable, as it conducted “one of the most aggressive rate hike cycles in history, raising rates from near zero to 5.5% in 16 months.
BRICS Summit Could Usher in $150,000 Gold Era: Andy Schectman on Potential Global Currency Reset
Andy Schectman, the President and Owner of Miles Franklin Precious Metals, has suggest there’s potential for a massive global financial reset that could see the revaluation of gold to $150,000 an ounce.
Schectman highlighted ongoing de-dollarization trends, the introduction of a new common currency backed by gold, and the implementation of central bank digital currencies (CBDCs), all of which could drastically reshape the global financial landscape.
Schectman emphasized that the current system, heavily reliant on the U.S. dollar as the global reserve currency, is at risk of collapsing. He pointed to mismanagement of the U.S. dollar, the weaponization of the treasury, and record levels of gold accumulation by central banks as key indicators of a looming shift.
He explained how the BRICS nations, through initiatives like Project mBridge and their exploration of a new currency are positioning themselves to challenge the dominance of the U.S. dollar in international trade.
Satoshi-Era Whale Begins Selling $82 Million Bitcoin Stash
A Satoshi-era Bitcoin whale who has held their cryptocurrency since 2009 begun to sell their holdings, after it started mining the flagship cryptocurrency just five days after its first block was created.
Blockchain analysis firm Arkham Intelligence has been tracking the investor’s activity, which began with a series of transactions to American crypto exchange Kraken two months ago, and recently revealed the whale has sold a total of $10.52 million worth of BTC.
The whale, nevertheless, still has $71.7 million worth of Bitcoin on its wallets, suggesting more selling pressure could be on the horizon.
The whale’s stash includes “Satoshi-era” coins, with the term referring to the period in which Bitcoin’s pseudonymous creator, Satoshi Nakamoto, was still active in the community. Satoshi left the crypto space in December 2010.
What Else is Going On?
Cryptocurrency investor sentiment remains high as its Fear & Greed index, which serves as an aggregate for investor confidence and attitude towards the market, remained at 72. The index has risen from 6 when BTC dropped below $18,000 in 2022.
The index, it’s worth noting, is based on emotional behavior in the market. When fear sets in, some investors may see a buying opportunity, while greed may be a sign the market is due for a correction.
Total value locked in the decentralized finance (DeFi) space has meanwhile moved to $87 billion, according to data from DeFiLlama. Lido, the entity offering liquid staking services, makes up 28.1% of the TVL with little over $24.5 billion on its protocol.
