Positive news for Bitcoin from Trump and MicroStrategy

The price of Bitcoin has returned to around $92,000 mainly thanks to some positive news coming from the USA. 

Furthermore, it was also helped by a slight decline in the dollar. 

The positive news on the price of Bitcoin 

The positive news is three. 

The first is that MicroStrategy has announced a new billion-dollar Bitcoin purchase plan. 

The second is that the future president Trump will meet the CEO of the main US crypto exchange. 

The third is actually not news, but just a rumor according to which Donald Trump’s company might be interested in purchasing a crypto exchange. 

The Bitcoin news from MicroStrategy

Yesterday, the president of MicroStrategy, Michael Saylor, announced that the company will issue 1.75 billion dollars of senior bonds to purchase Bitcoin. 

MicroStrategy Announces Proposed Private Offering of $1.75B of Convertible Senior Notes. $MSTR https://t.co/dBJMUvfjj1

— Michael Saylor (@saylor) November 18, 2024

Such bonds will be convertible at 0% maturing in 2029, and will be offered privately to persons reasonably believed to be qualified institutional buyers.

It will therefore not be a public offer. 

The bonds offered will be known as unsecured notes of MicroStrategy, and will not bear regular interest. They will be convertible into cash, class A common stock of MicroStrategy, or a combination of cash and class A common stock of MicroStrategy, at the discretion of MicroStrategy. 

In the official statement, the company adds: 

“MicroStrategy intends to use the net proceeds from this offering to acquire additional bitcoin and for general corporate purposes.”

Note that the company currently already owns more than 330,000 BTC, with a current total market value of over 30 billion dollars. Since it appears to have spent about 16 billion to purchase them, it has so far accumulated an unrealized profit of nearly 14 billion dollars. 

The news of Trump

According to what was reported by the Wall Street Journal, the future president Donald Trump will privately meet with the CEO of Coinbase Brian Armstrong to discuss Bitcoin and cryptocurrencies. 

The journalist from WSJ who spread the news, Brian Schwartz, claims that the meeting will address issues related to personnel in the next Trump administration, and that it is the first time the two have met since Trump began announcing candidates for his cabinet.

If Trump turns to Armstrong for the staff of his future administration, it is most likely because he is looking for people who understand cryptocurrencies and crypto markets. 

It cannot be ruled out that the two will also talk about the future president of the SEC, now that Gary Gensler has hinted that he is ready to resign. 

This news is certainly positive for Bitcoin, but in reality, it adds nothing to what the markets were already imagining. 

The rumor about Trump

The rumor about the possible purchase of a crypto exchange, on the other hand, appeared like a bolt from the blue. 

It should be emphasized once again that this is not news, but only a rumor, even if it has been effectively confirmed by the exchange. 

The exchange in question is Bakkt, on whose official Telegram channel yesterday an article by Reuters was shared, in which it is mentioned that the Financial Times reported the rumor that Donald Trump’s social group is in negotiations to purchase Bakkt.

The social media company of the new president is Trump Media and Technology Group, listed on the stock exchange with the ticker DJT.O. It is the company that manages his social network Truth.

The Financial Times, citing two people with knowledge of the ongoing talks, claims that it would be in advanced negotiations to purchase the crypto trading company Bakkt, which is itself listed on the stock exchange with the ticker BKKT.N. The hypothesis would be that of a purchase of all the shares.

Bakkt is owned by Intercontinental Exchange (ICE.N), which is the company that also owns the New York Stock Exchange (NYSE). 

It is a crypto platform that was created a few years ago, but it has never really taken off. 

Although neither company has confirmed, the fact that Bakkt shared the Reuters article on its official Telegram channel suggests that the rumor might be true.

It is not yet known, however, at what point the negotiation is, nor the potential purchase price. 

The reaction of the Bitcoin price

Yesterday, after the closing of the European stock exchanges, the price of Bitcoin had fallen below $90,000. 

However, in the evening, when the USA stock markets were still open, it managed to climb back above $92,000. 

During the night, it continued to oscillate between $90,000 and $92,000, riding the wave of these news. 

Furthermore, since yesterday afternoon the dollar has slightly decreased. 

The Dollar Index is still at very high levels (106.3 points), but yesterday the decline started from 106.7 points. 

The fact is that many are expecting the start of a long decline, which could last for several months or even for a year, during which it could return to the minimum levels of recent years, namely around the 90-point mark. 

Given that the trend of Bitcoin’s price tends to be inversely correlated with the Dollar Index in the medium/long term, there is the possibility that a long decline of the dollar could help Bitcoin’s price to rise. 

Yesterday, a local peak in volatility was expected, and indeed there was movement, while today a reduction in volatility was anticipated. However, with the news released last night, it is possible that there will also be interesting movements in the BTC market today.