Despite Bitwise’s longer-term optimism, some analysts remain cautious in the near term. Key Takeaways Bitcoin volatility may fall further in 2026, according to Bitwise. The firm said Bitcoin, Ethereum and Solana are all expected to reach new all-time highs in the new year. Short-term risks remain for Bitcoin. Bitcoin could become less volatile than high-growth U.S. technology stocks, such as Nvidia, by 2026, while both Bitcoin and Ethereum are likely to reach new record highs, according to crypto ...

Up until October, the cryptocurrency market appeared simply unstoppable, commanding a total capitalization of approximately $4.28 trillion. Much of the positive sentiment originated from abundant liquidity and elevated risk appetite. However, the capital markets are often known for their capricious non-linearity and decentralized digital assets found themselves caught out. What followed was a rapid – and negative – repricing, with fear once again becoming the dominant emotion.While the initial volley of red ...

Group 1 - GameStop's Bitcoin investment of $500 million has increased to $519.4 million, reflecting a $19 million unrealized profit after experiencing a prior loss of $9.4 million [1] - The company's Q3 adjusted earnings per share were $0.24, surpassing expectations of $0.20 and significantly higher than last year's $0.06, although revenue fell to $821 million, a 4.6% year-over-year decline [3] - Cost-cutting measures contributed to improved earnings, with SG&A expenses reduced to $221.4 million from $282 million last year, resulting in $52.1 million in adjusted operating income [4] Group 2 - Bitcoin's volatility has impacted GameStop's treasury strategy, particularly following a significant market crash that affected leveraged crypto trades [3] - The current market conditions show that short-term holders of Bitcoin are experiencing substantial losses, which is contributing to selling pressure and hindering Bitcoin's price recovery above $90,000 [5] - Institutional interest in Bitcoin remains strong, with $151 million in BTC spot ETF inflows reported [6]

[AUDIO LOGO] SPEAKER: Why is crypto so up and down. Cryptocurrencies can be like a theme park ride. There are highs and lows that can be somewhat unpredictable.But what causes that. Let's look at some volatility factors. We've always bartered and exchanged for goods and services-- everything from 2 sheep for a cow to $10 for a pizza.These transactions work because both the buyer and seller trust the value of what's being exchanged. But cryptocurrency is still new and some people are skeptical of its long-te ...

Core Insights - The cryptocurrency market is experiencing increased volatility as Bitcoin's popularity wanes, prompting publicly traded crypto treasury companies to pivot towards riskier, less liquid tokens [1][2][4] - The number of digital asset treasury (DAT) companies has surged to at least 200, with a combined market capitalization of approximately $150 billion, reflecting a threefold increase from the previous year [3] Group 1: Market Trends - A significant shift is observed as newer DAT companies are moving away from Bitcoin to invest in more exotic cryptocurrencies in an attempt to enhance returns [2][4] - Recent announcements indicate that companies like Greenlane, OceanPal, and Tharimmune are planning to acquire various lesser-known tokens, highlighting the intertwining of cryptocurrencies with traditional markets [4] Group 2: Financial Strategies - Many DATs have resorted to financing token acquisitions through private investment in public equity (PIPE) deals, raising over $15 billion since April, with only five targeting Bitcoin [5] - The trend of expanding into less liquid cryptocurrencies raises concerns about heightened risks, especially during market downturns, as noted by Moody's Ratings [5]

Core Insights - The GENIUS Act increases regulatory scrutiny on bitcoin-backed stablecoins but does not address bitcoin's inherent volatility [1][19] - Bitcoin's price has significantly dropped from over $125,000 to the low-$80,000s, erasing substantial market gains and raising concerns about "peak bitcoin" [2][21] - Bitcoin's integration into corporate balance sheets has made its price fluctuations more impactful on earnings and financial reporting [4][20] Regulatory Environment - The GENIUS Act establishes a federal framework for dollar-denominated stablecoins, mandating 1:1 reserve backing and compliance with anti-money laundering regulations [7] - The Act allows for repos backed by foreign government-authorized mediums, potentially including bitcoin, which could complicate stablecoin stability [8][19] - Tokenized deposits may provide a safer alternative to privately issued stablecoins, positioning bitcoin as a speculative asset [9] Corporate Holdings - Strategy (formerly MicroStrategy) holds approximately 640,031 bitcoins with a cost basis of about $47.4 billion and a carrying value of $73.2 billion [10] - Block has reported holding around 8,780 bitcoins valued at approximately $1 billion, with additional bitcoins for operational purposes [11] - Tesla's digital assets include 11,509 bitcoins valued at $1.3 billion, contributing to earnings volatility [12] Accounting Standards - The new crypto-asset accounting standard allows companies to report bitcoin at fair value, impacting quarterly earnings with gains and losses [15] - Future price declines could lead to significant remeasurement losses for companies holding substantial bitcoin assets [16] Market Dynamics - Bitcoin's role in everyday payments remains limited, with stablecoins and tokenized deposits gaining traction for cross-border transactions [17] - The volatility of bitcoin poses risks for its use in pricing goods and services, complicating its acceptance as a medium of exchange [18] - The current market downturn may solidify a division where stablecoins align with commerce while bitcoin serves as a high-risk reserve asset [20]

Core Insights - The sharp decline in Bitcoin's value over the past month is attributed to investors deleveraging their cryptocurrency holdings and exhibiting risk aversion [1] Group 1 - Binance's Chief Executive Richard Teng provided insights on the market dynamics affecting Bitcoin [1]

Core Insights - The Bitcoin rally has turned into losses for investors in US exchange-traded funds (ETFs), with the average cost basis around $89,600, leading to collective losses as Bitcoin trades below this level [1][2][4] - The recent decline in Bitcoin, approximately 30% since early October, has caught Wall Street off guard despite the influx of institutional investments [5][6] - The group of 12 spot ETFs dedicated to Bitcoin has experienced net outflows of about $2.8 billion in November, indicating a shift in investor sentiment [4][7] ETF Performance - The flow-weighted average price of all ETF inflows since launch is approximately $89,600, marking a critical threshold for investors [2][4] - As of 9:55 a.m. in London, Bitcoin was trading around $91,100, which is below the average cost basis for ETF investors [2] - The popularity of Bitcoin-focused ETFs has led to the launch of over 110 crypto-minded ETFs in the US this year [6] Market Sentiment - The sharp drop in Bitcoin's price has placed many institutional buyers underwater for the first time, raising concerns about potential further outflows if market sentiment does not stabilize [4][5] - The overall cryptocurrency market has seen a loss of $1.2 trillion in market value since Bitcoin's peak, with many smaller coins down over 50% for the year [7]

Core Insights - Companies focused on stockpiling cryptocurrencies are facing pressure due to market saturation and negative sentiment, leading to a shift towards less popular and more volatile tokens [1][3] - The number of digital asset treasury (DAT) companies has surged to at least 200, with a combined capitalization of approximately $150 billion, reflecting a threefold increase from the previous year [2] - Many penny stocks are increasingly investing in exotic cryptocurrencies to enhance returns as Bitcoin prices decline, raising concerns about market volatility [3][5] Company Trends - Recent announcements from companies like Greenlane, OceanPal, and Tharimmune indicate a trend towards accumulating lesser-known tokens such as BERA, NEAR, and Canton Coin [4] - The expansion of DATs into more exotic and less liquid cryptocurrencies is seen as a significant risk factor, especially during market downturns [5] Funding Mechanisms - Since April, over 40 DATs have raised more than $15 billion through private placements or PIPEs, with only five focused on Bitcoin, highlighting a shift in funding strategies [6] - PIPEs provide companies with quick access to cash but can lead to shareholder dilution and increased stock price volatility, particularly for companies heavily reliant on this funding method [8] Investor Landscape - Major crypto investors involved in these funding deals include Winklevoss Capital, Galaxy Digital, and Kraken, indicating institutional interest in leveraging returns through regulated public firms [7] - DATs offer a pathway for cautious investors to gain exposure to cryptocurrencies while navigating the risks associated with direct token purchases [7]

Group 1 - The cryptocurrency market experienced significant bullish momentum on October 21, driven by strong institutional interest, with Bitcoin exchange-traded funds (ETFs) seeing a net inflow of $477.2 million [1] - Spot Ethereum ETFs in the US also recorded net inflows of $141.7 million, with Bitcoin nearing $114,000 and Ethereum briefly surpassing $4,100 [2] - The overall crypto market faced a selloff of $170 billion, dropping from $3.82 trillion to $3.65 trillion, indicating volatility and uncertainty among investors [3] Group 2 - Total crypto liquidations surged by 86% to $651 million, with $352.4 million from long positions and $298.5 million from short positions being liquidated [4] - The Bitcoin volatility index reached 95%, marking the third occurrence of this critical level in the past 30 days, reflecting ongoing market uncertainty [4] - High volatility in the market suggests investor apprehension regarding the macroeconomic environment, particularly due to tensions between the US and China [5]