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Ether ETFs Outpace Bitcoin in Inflows, Attracting Institutional Investors

Ether (ETH) is outperforming Bitcoin (BTC) in the exchange-traded fund (ETF) space, with significant institutional interest driving the growth. CoinShares reports that Ether saw a record $634 million in ETF inflows in the final week of November, pushing its total for 2024 to $2.2 billion. As regulatory clarity improves in the U.S., Ether’s appeal continues to rise, particularly among institutional investors looking for more stable and profitable investment options. With the possibility of staking yields being added to Ether ETFs, this growth trend is expected to continue.

Meta’s Diem Stablecoin Project Ends Amid Regulatory Pressure

Meta’s decision to shut down its stablecoin project, Diem, has caused a stir in the crypto world. David Marcus, who led the project, cited political interference and pressure from regulators as the primary factors behind its closure. Despite the initial promise of Diem to revolutionize digital payments, Meta’s exit highlights the complex relationship between blockchain projects and government regulation. The shutdown of Diem may have wider implications for the future of stablecoins, particularly those backed by large tech companies.

BitGo Eyes India’s Booming Crypto Market

BitGo is eyeing India’s rapidly expanding cryptocurrency market, which is expected to generate $6.6 billion in revenue by 2024. With its institutional-grade crypto services, including custody solutions and trading platforms, BitGo aims to capitalize on the country’s growing interest in digital assets. India’s evolving regulatory landscape presents both challenges and opportunities for BitGo as it looks to establish a foothold in one of the world’s largest and most dynamic markets for cryptocurrency.

XRP Declines as Bitcoin Reaches $103,000

XRP experienced a 13% drop on December 5, falling to $2.30, while Bitcoin surged to an all-time high of $103,000. This came after XRP hit a multi-year high of $2.90 on December 3, marking a 25% loss within just two days. XRP’s market capitalization also fell by 8%, resulting in a loss of its position as the third-largest cryptocurrency to Tether (USDt).

XRP’s Outperformance of Bitcoin Comes to an End

XRP had outperformed Bitcoin significantly between November 1 and December 3, rising 354% compared to Bitcoin’s 45.5% increase. However, as Bitcoin reached the $100,000 milestone, XRP’s BTC ratio fell to 0.00002334 by December 5, signaling a shift in market dynamics and investor attention.

Liquidations and Open Interest Decline Contribute to Selling Pressure

The recent price drop was further driven by the liquidation of $12.8 million in long XRP positions, adding selling pressure to the cryptocurrency. XRP’s open interest (OI) also fell to $4.3 billion, down from $722 million in November. This decline in OI signals that traders are becoming more cautious as market uncertainty increases.

Technical Indicators Show Potential for a Rebound

Despite the recent decline, technical analysis suggests that XRP could still rebound. A bull flag pattern has formed on the four-hour chart, indicating the possibility of a continuation of the previous uptrend. Breaking the $2.37 resistance level could lead to a new all-time high at $4.83.

Support Levels and Market Outlook

XRP’s RSI has dropped to 52 from 82, suggesting weakened momentum. If XRP fails to maintain support at $2.37, the price may retest key support levels such as $2.05 or $1.68. These levels will be crucial in determining whether XRP can recover or if the bearish trend will persist.

Motion Filed to Dismiss Class-Action Lawsuit

Hut 8 Corp. has filed a motion to dismiss a class-action lawsuit in a New York federal court. The lawsuit, initiated by Hut 8’s shareholders, stems from a report by short-seller J Capital Research, which accused the company of overpaying for US Bitcoin Corp. (USBTC), a firm with operational problems. Hut 8 argues that the report was part of a larger effort to lower its stock value for personal gain.

Short-Seller Strategy at the Heart of the Lawsuit

In its submission on December 2, Hut 8 described the lawsuit as a “short-and-distort” strategy, where short-sellers aim to profit from devaluing a company’s stock and then use legal action to reinforce their claims. The company argued that such tactics are often used to manipulate market perception and urged the court to dismiss the case, citing that similar lawsuits are frequently thrown out.

Allegations of Misrepresentation and Operational Issues

J Capital Research’s report, published in January, alleged that Hut 8 misrepresented the profitability of its acquisition of USBTC, hid operational flaws at a Texas facility, and possibly withheld information about ownership stakes. Following the release of this report, Hut 8’s stock price dropped by 23%, prompting shareholder lawsuits.

Hut 8 Defends Its Statements and Stock Recovery

Hut 8 contends that its stock has since recovered, increasing by 300% since the report was published. The company also argues that many of its public statements are protected by safe harbor provisions and that the operational risks of USBTC were disclosed. Hut 8 denies any harm to shareholders and asserts that the plaintiffs have not shown that the claims caused the stock drop.

Court Urged to Dismiss Lawsuit with Prejudice

Hut 8’s motion concludes with a request for the court to dismiss the case “with prejudice,” emphasizing that the plaintiffs have not proven that the company’s statements were false or that shareholders suffered any actual harm. The company urges the court to dismiss the lawsuit in its entirety.

Initial Token Distribution Leaves Investors Struggling to Trade

Mpeppe, a blockchain-based casino platform, has begun distributing 25% of the tokens owed to investors via a new claim portal. However, many users are reporting that they are unable to trade their tokens due to a lack of liquidity. Despite successfully claiming their tokens, investors have been unable to sell them on Uniswap or exchange them for other assets.

Accusations of Fraudulent Presale Resurface

The latest distribution follows accusations in August that Mpeppe had run a fraudulent presale, where investors paid in cryptocurrency but did not receive the corresponding tokens. Blockchain records showed no movement of tokens from the wallet where they were stored. Mpeppe has now begun releasing the tokens, with plans to distribute the remaining 75% by December 25.

Claim Portal Requires Personal Details

The claim portal, which allows users to access 25% of their tokens, requires them to connect their wallets but asks for personal details such as phone numbers and email addresses. Although over 700 users have successfully claimed their tokens, the lack of liquidity on decentralized exchanges like Uniswap has left many unable to trade the tokens.

Mpeppe’s Future Plans in Jeopardy

Despite the liquidity issues, Mpeppe has announced plans to develop a Telegram-based gaming platform and an online casino where users can bet using Mpeppe tokens. These future projects may face significant challenges if the platform cannot resolve the liquidity issues and regain investor confidence.

Saylor’s Bold Proposal for Microsoft

Michael Saylor, CEO of MicroStrategy, recently proposed that Microsoft could see its market value soar by $5 trillion by making Bitcoin a central part of its investment strategy. He views Bitcoin as a transformative asset that could redefine the company’s future.

Saylor’s Pitch to Microsoft Leadership

In a concise three-minute presentation, Saylor urged Microsoft’s leadership to allocate its resources, including dividends, cash flows, and stock buybacks, to Bitcoin. He stressed that Bitcoin is the next breakthrough technology and that Microsoft must act now to capitalize on it.

Potential Impact on Stock and Enterprise Value

Saylor estimated that embracing Bitcoin could add $584 per share to Microsoft’s stock price by 2034, assuming Bitcoin reaches $1.7 million. He also forecast that such an investment could increase Microsoft’s total enterprise value by $4.9 trillion.

Microsoft’s Current Valuation and Bitcoin’s Growth

Microsoft, currently valued at $3.18 trillion, is the third-largest company in the world. With Bitcoin surging by 120% in 2024, nearing $100,000 per coin, Saylor is confident in its potential as an investment for tech giants like Microsoft.

Growing Institutional Support for Bitcoin

Saylor pointed out that MicroStrategy has been a significant Bitcoin investor since 2020, acquiring 386,700 BTC. He also noted that Bitcoin has been gaining institutional and political support, including endorsements from top Wall Street firms and figures like Donald Trump.