## The Global Expansion of Bitcoin
As **Bitcoin** continues to **expand globally**, its potential for **institutional adoption** is gaining traction. This could significantly reshape its **market trajectory** and price dynamics.

## Mining and Reserve Adoption
The shift towards increased **mining activities** and the accumulation of **Bitcoin reserves** by institutions may lead to a substantial impact on its market value. The more institutions invest in Bitcoin, the more they can influence its price, pushing it towards **historic highs**.

## The Future Outlook
With more entities recognizing Bitcoin as a viable asset, the landscape is changing rapidly. The implications of this trend are vast and could lead to a **bullish market sentiment** as institutional players enter the space more aggressively.

As Bitcoin expands globally, mining and reserve adoption are poised to reshape its market trajectory.

Is Institutional Adoption the Key to Bitcoin's Price Surge? Discover the Implications!

### Bitcoin Trading Below Record Highs

Bitcoin (BTC) is currently trading **13% below** its record high of approximately **$108,000**, marking the largest discount since the U.S. election in early November. This decline has drawn attention as the largest cryptocurrency has frequently hovered around **10% below** its record price, which some investors term a **correction**.

![BTCUSD (TradingView)](https://www.coindesk.com/_next/image?url=https%3A%2F%2Fcdn.sanity.io%2Fimages%2Fs3y3vcno%2Fproduction%2F0d29a545f2935e228cbfb5f1b3e580327fd1c50b-1305x802.png%3Fauto%3Dformat&w=1920&q=75&dpl=dpl_EoiznyFumwBi7WMyxdCqjgU977J1)

### Selling Pressure from Long-Term Holders

The current selling pressure is largely attributed to **long-term holders (LTHs)**, defined by **Glassnode** as investors who have held Bitcoin for at least **155 days**. These investors typically sell during price surges after accumulating Bitcoin during lower price periods. Recently, LTHs have been offloading significant amounts of BTC, reducing their total holdings from around **14.2 million BTC** in mid-September to approximately **13.2 million BTC**.

On a notable day, Thursday, LTHs sold nearly **70,000 BTC**, representing the **fourth-largest one-day sell-off** this year according to **Glassnode** data.

### Rise of Short-Term Holders

Conversely, for every seller, there must be a buyer. In this scenario, **short-term holders (STHs)** have accumulated about **1.3 million BTC** during the same timeframe, acquiring coins from LTHs and beyond. However, the recent narrative indicates that LTHs are now looking to sell more than STHs are willing to purchase, contributing to the price decline to around **$94,500**.

### Market Dynamics and Supply

Currently, there are **19.8 million** Bitcoin tokens in circulation, with an additional **2.8 million** held on exchanges. This balance is decreasing, with about **200,000 BTC** having exited exchanges over the past few months. The behavior of these cohorts will be crucial in monitoring Bitcoin's price activity going forward.

![BTC: Long/Short Term Holder Threshold (Glassnode)](https://www.coindesk.com/_next/image?url=https%3A%2F%2Fcdn.sanity.io%2Fimages%2Fs3y3vcno%2Fproduction%2F8cf92595fc8a07039a0b9a054735e1928061f1d9-1800x1013.png%3Fauto%3Dformat&w=1920&q=75&dpl=dpl_EoiznyFumwBi7WMyxdCqjgU977J1)

Bitcoin is at the biggest discount to its record high since the U.S. election.

Why Long-Term Bitcoin Holders Are Selling: Insights on the Market Shift

### Major Bitcoin Whale Activity

Yesterday, the **Federal Reserve** announced a **25 basis point rate cut**, prompting a significant **market retrace**, with **Bitcoin (BTC)** leading the downturn. After peaking at **$108,000**, BTC retraced **8%**, testing key liquidity levels before stabilizing above **$98,000**. This volatility extended beyond crypto, affecting broader markets as well.

### Whale Movement Raises Eyebrows

Adding to this intrigue, **CryptoQuant** reported that a long-term **Bitcoin whale** moved **over 72,000 BTC**, including **8,000 BTC aged 5-7 years**. Such substantial transfers often signal critical market shifts, as they can heavily influence **market sentiment** and liquidity.

Despite the recent downturn, Bitcoin's ability to hold above key liquidity zones has provided some reassurance to investors. However, **questions linger**: is this drop merely a shakeout to fuel further gains, or could it indicate a deeper correction?

### Analyzing the Implications

Analysts are closely monitoring Bitcoin's next moves, especially with the backdrop of significant whale activity and pivotal macroeconomic policies. The coming days could be crucial for BTC's short-term trajectory.

### The Whales' Strategy

After Bitcoin's breakout from **$67K to $108K**, market sentiment has shifted, with large investors actively repositioning their holdings. Notably, this is the **eighth transaction** in the past two weeks, indicating a pattern of substantial whale movements. These transactions could be interpreted as:
- **Market Top Signal**: Whales may believe BTC has peaked and are selling to capitalize on the price surge.
- **Preparation for Altseason**: Alternatively, they might be rebalancing their portfolios to invest in altcoins, anticipating a market shift.

### Current Market Structure

Currently, Bitcoin is trading at **$102,300**, having tested local demand at **$98,695**. The price structure remains bullish, with a formation of **higher highs and higher lows**. For BTC to maintain momentum and reach new highs, it must break above the **$103,600** resistance level.

However, a failure to do so could trigger a correction, particularly if BTC drops below the **$100,000** support level. Traders will keep a close eye on these levels to determine whether the bullish trend can continue or if a short-term correction is imminent.

![Bitcoin Spent Output Age Bands](https://bitcoinist.com/wp-content/uploads/2024/12/btc_ebe8ac.png?resize=980%2C551)  
*Bitcoin Spent Output Age Bands | Source: [Maartunn on X](https://208.87.241.209/JA_Maartun/status/1869473235471151281?__cpo=aHR0cHM6Ly94LmNvbQ)*  
![BTC holding a bullish structure](https://bitcoinist.com/wp-content/uploads/2024/12/BTCUSD_2024-12-19_06-14-40.png?resize=980%2C616)  
*BTC holding a bullish structure | Source: [BTCUSDT chart on TradingView](https://208.87.241.209/chart/H7cS2cAO/?symbol=BITSTAMP%3ABTCUSD&amp;__cpo=aHR0cHM6Ly93d3cudHJhZGluZ3ZpZXcuY29t)*

Giant Bitcoin Whale Moves 72,000 BTC, 8,000 Coins Aged 5-7 Years. This unprecedented move by a long-term holder signals potential market shifts.

72,000 BTC Transferred by Bitcoin Whale: Is It a Market Top or Altseason Ahead?

### **Spot Bitcoin ETFs Experience Unprecedented Withdrawals**

The U.S.-listed **spot bitcoin (BTC)** exchange-traded funds (ETFs) faced a staggering **record outflow of $671.9 million** on Thursday, marking the largest single-day withdrawal since their inception on January 11. This decline comes as bitcoin's price plunged below **$100,000**, extending its **post-Fed losses**.

### **CME Futures Premium Indicates Weak Demand**

The **CME futures premium** has also diminished, dropping into single digits, which signals a decrease in short-term demand. Investors ended a **15-day streak of inflows**, with Fidelity's FBTC and Grayscale's GBTC leading the outflows, losing **$208.5 million** and **$188.6 million**, respectively. Other funds also experienced significant withdrawals, with BlackRock's IBIT reporting a zero figure for the first time in weeks.

Bitcoin's price fell to **$96,000**, down nearly **10%** from its recent high of **$108,268** earlier this week. This bearish sentiment is reflected in the derivatives market, where the **annualized premium** in CME's regulated one-month bitcoin futures fell to **9.83%**, the lowest in over a month.

### **Impact on Ether ETFs**

Additionally, **Ether ETFs** witnessed a net outflow of **$60.5 million**, marking the first decline since November 21. Ether has suffered a **20% drop** since exceeding **$4,100** before the Fed's recent decision.

### **Market Implications**

The decline in the futures premium suggests that cash-and-carry arbitrage strategies involving long positions in ETFs and short positions in CME futures are yielding lower returns, indicating that **ETFs may continue to face weak demand** in the near term.

The exchange-traded funds lost a record $671.9 million as bitcoin extended post-Fed losses below $100,000. 

Massive Outflows from U.S. Bitcoin ETFs: What It Means for the Market

### Understanding Bitcoin's Supply Cap

Here's why you should not be worried about Bitcoin's maximum supply increasing beyond **21 million limit**.

![Is Bitcoin's 21 Million Cap Safe? Adam Back Explains](https://u.today/sites/default/files/styles/736/public/2024-12/54738.jpg)

Blockstream CEO **Adam Back** has weighed in on the most recent controversy surrounding Bitcoin and financial titan **BlackRock**. According to this prominent British cryptographer, who was cited in **Satoshi Nakamoto's** white paper, the scarcity of the leading cryptocurrency is not under threat despite some speculation within the community.

Earlier this week, **MicroStrategy's Michael Saylor** shared a relatively benign educational clip from BlackRock about Bitcoin. However, some of his followers quickly noticed a disconcerting disclaimer about how there was no guarantee that the maximum number of Bitcoins in existence will be capped at **21 million**.

### The Heresy of Increasing Bitcoin's Supply

Entertaining the idea of increasing Bitcoin's maximum supply limit has always been treated as **heresy** by members of the Bitcoin community. The cryptocurrency's limited supply has always been considered as one of its main **value propositions**, especially when compared to fiat currencies and some inflationary altcoins.

However, Back has downplayed the BlackRock disclaimer as merely some **"cautious legal coverage."** He explained that it is obvious that BlackRock's lawyers made them add the legal fine print since the financial giant is selling products that they have no control over. "It's just their lawyers making sure they don't get sued if the community changed the number and they'd sold bitcoin ETFs saying it could never be over 21m," he said.

That said, the disclaimer is **meaningless** since the community is not going to increase Bitcoin's maximum supply. **Charlie Shrem**, an early Bitcoin advocate, has opined that abandoning the **21 million cap** would turn the largest cryptocurrency into an entirely different coin.

Here's why you should not be worried about Bitcoin's maximum supply increasing beyond 21 million limit

Why Bitcoin's 21 Million Supply Cap is Here to Stay: Insights from Adam Back

### A Beacon of Hope for Bitcoin Bulls

A **key contrary indicator** is lighting up, offering optimism for Bitcoin (BTC) enthusiasts anticipating a resurgence into the six-figure territory. 

**Recent Developments**  
On December 20, 2024, Bitcoin's price plummeted to **$96,000** following the Fed's announcement to cut the benchmark borrowing cost. However, the central bank's forecast of only **two rate cuts** for 2025, down from four, has stirred mixed reactions among investors.

### Market Reaction to Fed's Decision  
Since the announcement, Bitcoin has witnessed a decline of over **8%**, trading around **$97,500**, a significant drop from its record high of **$108,266** reached earlier in the week, according to CoinDesk data.

### Technical Analysis: Bearish Crossover
The recent price drop has caused the **50-hour simple moving average (SMA)** to fall below the **200-hour SMA**, signaling a **bearish crossover**. Historically, such patterns often indicate deeper pullbacks, yet they haven't always been reliable during the latest bull run.

Bitcoin has seen several pullbacks during its recent rally, from **$70,000 to over $100,000**, with each dip marking a bearish crossover. However, this latest crossover could signify potential bullish momentum for BTC bulls aiming for a return to six figures above **$100,000**.

### Potential Resistance Levels  
A bounce back may encounter resistance around **$10,600**, identified by a descending trendline. A breakthrough at this level could pave the way for new record highs.

### Caution Ahead
It's crucial to remain vigilant, as these patterns can sometimes falter. A drop below the recent low of **$96,000** could lead to further declines, exposing a potential swing low of around **$91,000** recorded on December 5.

![BTC's hourly charts. (TradingView/CoinDesk)](https://www.coindesk.com/_next/image?url=https%3A%2F%2Fcdn.sanity.io%2Fimages%2Fs3y3vcno%2Fproduction%2F75230b7969a78c50645bcef9b9a6841029c894cf-2390x1042.png%3Fauto%3Dformat&w=3840&q=75&dpl=dpl_EoiznyFumwBi7WMyxdCqjgU977J1)

As Bitcoin's Post-Fed Price Dip Extends, This Key Contrary Indicator Offers Fresh Hope: Godbole

Bitcoin's Price Dip: Is a Bullish Turn on the Horizon? Key Indicators Suggest Hope!

### Craig Wright's Legal Challenges

**Craig Wright**, the Australian computer scientist who controversially claims to be **Bitcoin’s creator**, **Satoshi Nakamoto**, has been sentenced to **12 months in jail**, which is suspended for **two years**. This ruling comes as a result of his **contempt of court** for violating a previous order that prohibited him from filing lawsuits based on his claim to be Nakamoto.

### Court Rulings Against Wright

In **March 2024**, a U.K. court decisively ruled that Wright was **not Nakamoto**. This decision followed his persistent assertions regarding ownership of Bitcoin's **intellectual property**. By **July**, Wright was mandated to publicly declare he was not the creator of Bitcoin and was barred from initiating further legal actions related to this claim. However, in **October**, he filed yet another lawsuit, accusing **Bitcoin developers** of misrepresenting Nakamoto’s vision, seeking damages exceeding **$1.18 billion**. This prompted the **Crypto Open Patent Alliance (COPA)** to file a contempt case against him.

### COPA's Argument

COPA contended that Wright’s ongoing legal disputes, rooted in his claims of being Nakamoto, were merely an effort to sustain his public profile and violated prior court orders. His lawsuits involved over **100 companies**, with demands totaling nearly **£900 billion** as he sought to enforce his rights over Bitcoin’s **whitepaper**.

### Background of Legal Troubles

Wright’s legal saga began in **2021** when he initiated lawsuits against various individuals and organizations for the rights to the Bitcoin whitepaper. Despite previous dismissals, including a **$1.14 trillion** damage claim, he persisted in his legal pursuits. The contempt charge arose from a new lawsuit he filed against COPA, which he defended as aligned with his rights as Nakamoto.

### Court Proceedings and Sentencing

During the **Dec. 19** hearing, Wright appeared via **video link**, citing financial and logistical reasons for his absence from court. COPA had offered to arrange travel for him, but he declined, stating he was in **Asia** for work. Judge **James Mellor**, who had previously ruled against Wright’s claims, imposed a suspended sentence aimed at deterring further violations of court orders. The judge acknowledged Wright’s absence from the U.K., complicating any potential custodial enforcement.

### Future Implications

Wright's defense team plans to appeal the ruling, but COPA’s legal counsel asserts that this decision should mark the end of Wright’s attempts to assert claims over Bitcoin’s creation. They believe that following the March ruling, it was evident that Wright was not Nakamoto, labeling his ongoing actions as mere publicity stunts. Despite these legal battles, the **true identity** of Bitcoin’s creator remains a mystery.

Craig Wright, the Australian computer scientist who falsely claimed to be Bitcoin’s creator, Satoshi Nakamoto, has been sentenced to 12 months in jail, suspended for two years.

Craig Wright Avoids Jail Time Despite Contempt of Court Ruling in Ongoing Bitcoin Lawsuits

### Ripple vs. SEC: A Case at a Critical Juncture
The **SEC** is under pressure to clarify the status of **Hinman's speech** amid a **Ripple appeal**. Key points include:
- The SEC formally states that the **Hinman speech** is not to be relied upon as guidance.
- An immediate review of all digital asset-related investigations and litigation cases is initiated.
- Stays are sought for cases without fraud or imminent harm.

These developments could significantly impact the **Ripple case**, with the SEC's **opening brief** due by **January 15, 2025**.

In August 2024, Judge **Analisa Torres** ordered Ripple to pay a **$125 million penalty** for violating US securities laws, which was significantly lower than the SEC's demand for a **$2 billion punitive penalty**. Notably, the court found no **pecuniary harm** suffered by investors, nor fraud committed by Ripple.

A potential stay on the Ripple case may lead the SEC to withdraw its appeal, making the **Programmatic Sales of XRP ruling** a critical legal precedent for the US digital asset market. The resolution of this case could be a **boon for XRP**, which has been mired in uncertainty due to the SEC's appeal plans.

### The Hinman Speech: A Contentious History
Renouncing Hinman’s **2018 speech** would be a significant win for Ripple. The speech, where Hinman stated that **Bitcoin (BTC)** and **Ethereum (ETH)** are not securities, has been controversial due to Hinman's ties to **Simpson Thacher**, a firm promoting **Enterprise Ethereum**. 

During the SEC vs. Ripple case, the SEC attempted to shield documents related to Hinman’s speech under **attorney-client privilege**, but the court rejected these motions, revealing that Hinman continued his connections with Simpson Thacher despite ethics warnings.

### XRP Price Trends: Awaiting Key SEC Decisions
On **December 19**, XRP fell by **3.10%**, closing at **$2.2376**, following a broader market decline. The US labor market and GDP data indicate a strong economy, influencing the **Fed’s monetary policy** and XRP's price trends. If the SEC withdraws its appeal, XRP could target its **2018 all-time high** of **$3.5505**, but initial selling pressure may occur if the SEC files its opening brief.

### Bitcoin Revisits $95K as US Data Bolsters Fed’s Rate Path Outlook
Bitcoin dropped to the **$95k** level on **December 19**, influenced by robust US labor market data. Key points include:
- Initial jobless claims fell, indicating a resilient labor market, which may raise borrowing costs and impact demand for BTC.
- The US economy's performance supports fewer rate cuts, affecting BTC's price.

### Will the Fed Rate Path End the US BTC-Spot ETF Market’s Inflow Streak?
On **December 18**, the US BTC-spot ETF market extended its inflow streak to **15 sessions**, with **BlackRock’s iShares Bitcoin Trust** contributing significantly. However, recent flow trends suggest a potential end to this streak, with major outflows reported from various funds, potentially impacting BTC's supply-demand dynamics.

### Bitcoin Price Outlook
On **December 19**, BTC declined by **2.4%**, closing at **$97,704**. Future trends will depend on US economic indicators and BTC-spot ETF flows, with significant sales or outflows potentially pulling BTC below **$95,000**. Conversely, inflows and progress towards an SBR could drive BTC towards **$110,000**. The upcoming **US Personal Income and Outlays Report** will likely influence sentiment toward the Fed’s rate path, impacting BTC's future movements.

SEC faces pressure to clarify Hinman speech’s status amid Ripple appeal. Learn how this impacts crypto regulations and XRP sentiment.

Is Institutional Adoption the Key to Bitcoin's Price Surge? Discover the Implications!

Summary:

The Global Expansion of Bitcoin

Mining and Reserve Adoption

The Future Outlook

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