💡 Welcome back to DV Chain's Weekly Market Commentary! BTC and ETH saw strong ETF inflows last week, totaling $2.73B and $836M, respectively, while MicroStrategy continued its aggressive buying, acquiring another $2.1B in BTC. With key events like Microsoft’s shareholder vote on adding Bitcoin to its balance sheet and Nasdaq’s potential inclusion of MicroStrategy in the Nasdaq 100, the market is gearing up for a pivotal week. Dive in for insights and key catalysts shaping the crypto space.

Market Recap
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• BTC and ETH had a strong week of ETF inflows, of +2.73B and +836m respectively

• Nasdaq to reveal MicroStrategy's potential Nasdaq 100 index inclusion on December 13 after market close
  
  
• Microsoft shareholders will vote on whether to add Bitcoin to the company’s balance sheet, with board recommending against it on December 10
  
  
• Microstrategy acquired another 21,550 BTC for $2.1B at an avg price of $98,783 per BTC between December 2 AND December 8some text
  • This week could be the last week of Microstrategy buying for the rest of the month as there is a blackout period going into the next earnings
  • assuming the Microsoft shareholder vote doesn’t pass, it’s likely that ETHBTC outperforms during this blackout period
    
    
• Bitcoin miner Riot proposes private offering of $500 convertible notes to acquire BTC
  
  
• China eases monetary policy stancesome text
  • looking to stabilize property and stock markets
    
    
• Powell refers to BTC as a competitor to Gold
  
  
• David Sacks, one of the hosts of the All in Podcast, is appointed Crypto and AI Czar, and will help the white house determine policysome text
  • He has been a long time crypto investor, and a GP to Multicoin Capital
  • It should help crypto continue to grow and gain mindshare amongst the masses as Crypto becomes a more frequent topic of discussion on one of the most popular podcasts
    
    
• Pudgy Penguins gets ready to release its token $PENGU, propelling the Pudgy Penguin NFT collection to flip BAYC, as NFTs begin to show signs of life again

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Upcoming Catalysts

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• $BTC
  • MSFT shareholder vote, potential positive catalyst but low odds as the board advised against it
  • MSTR blackout period upcoming, so the MSTR ~2B/week BTC TWAP could be put on pause after this week until January
    
    
• $ETH
  • ETF flows have been robust since the election
  • Future flows aren’t fully priced in yet, which has been the biggest driver of the cycle
    
    
• $LDO
  • DeFi as a sector is going to benefit from the shift in regulatory environment
  • LDO fundamentally is a very strong project, clipping almost $200m in fees on an annualized basis to its treasury
  • It has maintained majority of market share in the LST/LRT space, despite higher temporary yields in new competitor’s liquidity bootstrapping farms
  • From an institutional standpoint, it is much stronger than competitors in terms of safety and network effects. The Lido Dao’s roadmap prioritizes institutional adoption, which we think is an astute plan, given the recent interest in crypto and tokenization from Wall Street
  • It’s likely a Staked ETH ETF will be coming under the Trump admin
  • Fee switch likely incoming
  • Consensys lawsuit thrown out
    
    
• $ONDO, 1/18/25
  • 3.2B unlock, representing about 10x the Avg Daily volume
    
    
• FTX creditor distributions in Q4 ‘24 - Q1 ‘25

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