Could FTX Trigger The Next Alt Season?

Welcome back to the Daily Coinsauce Newsletter! Let’s dive into today’s updates—there’s a lot to unpack!

📅 Today

MicroStrategy Buys $1.5B in Bitcoin!

MicroStrategy has acquired 15,350 BTC for $1.5 billion between December 9-15, 2024, at an average price of $100,386 per Bitcoin—its first purchase above $100,000.

This brings its total holdings to 439,000 BTC, worth approximately $27.1 billion.

The purchase was funded through the sale of 3.88 million shares of its Class A common stock, raising $1.54 billion.

The company’s total BTC holdings are currently in over $20 billion in profits, with an average acquisition cost of $61 694.

FTX to begin customer repayments in 2025!

FTX has announced that it will begin repaying creditors and customers in early 2025, following the approval of its reorganization plan effective January 3, 2025.

Initial repayments, facilitated by Kraken and BitGo, will prioritize creditors with claims under $50,000, comprising over 90% of all creditors, with distributions expected within 60 days.

Creditors will receive U.S. dollar values of their crypto holdings based on November 2022 prices.

FTX’s plan allocates up to $16.5 billion, with 98% of creditors projected to recover 118% of their claim values.

Most of these repayments are expected to likely be re-invested back into crypto assets, which could provide sufficient liquidity for the next leg up for altcoins.

• Weekly on-chain insights.

• 3-5 altcoin chart setups.

• In-depth Bitcoin price updates.

• Occasional in-depth reports on altcoin gems.

• VC funding roundups.

• Market cycle insights.

• Premium Telegram trading group, and more.

🌎 Other News

• MicroStrategy to officially join the Nasdaq 100 Index on Dec 23rd. Read More 

• Riot Platforms Buys $69M in Bitcoin. Read more

• Avalanche's Etna Upgrade Activates. Read more 

• Ethereum approaches 3-year high prices. Read more

• Ripple to begin global rollout of RLUSD. Read more

📕 Educational

The investment case for Hyperliquid spot tokens is simple and straightforward:

1. Limited Supply

Only one auction occurs daily, creating scarcity in tokens being created on the ecosystem, unlike Solana where millions of tokens are created each month.

The last auction sold for over $1 million, with proceeds going to the assistance fund to buy $HYPE. The fund has grown to $250 million from its $HYPE purchases.

2. Strong Holder Conviction

Over 70% of top airdrop recipients are still holding their tokens, showing confidence in the project and minimal capital rotation within the ecosystem so far.

This means that profit booking and capital rotation has not begun yet.

3. Growing Momentum

Hyperliquid’s popularity is increasing, and the upcoming launch of its EVM will attract capital from other chains, further enhancing capital and liquidity in these spot tokens.

The Rotation Opportunity

Think of this like Bitcoin dominance: when BTC rises, capital stays in BTC. Once BTC stabilizes, profits flow into altcoins, causing them to surge , leading to an altseason.

Right now, $HYPE dominance is high, as the token has been in an “up-only” phase. When $HYPE settles or corrects, whales will take profits and rotate into spot tokens, which have extremely limited supply and low market cao.

Billions of dollars chasing tokens with market caps under $10 million can lead to massive price movements. Many tokens under the “Strict List” are still under $5 mil in market cap, such as Omnix, Points, etc.

These present asymmetric risk-reward opportunities, based on the thesis mentioned above.

📊 Stat of the day

🤣 Meme of the day

That concludes our update for today!

We appreciate you joining us for the latest news. We aim to provide the best-in-class insights and highlights that keep you well-informed and ready.

Remember to join us on Telegram and Twitter for additional updates and giveaways. Until then, see you next time!

Disclaimer: None of the content shared in the newsletter is financial advice. Always do your own research and analysis before investing.