Donald Trump, President-elect of the United States, revealed holds $7.2 million in many cryptocurrencies. This is another proof that he is a pro-crypto.

According to data from Arkham Intelligence, on Nov. 25, the 47th President of the United States owned digital assets in cryptocurrencies worth about $7.2 million. He held $26 million in cryptocurrency on Jun. 6, but dropped just a few days after to $17 million.

His most significant hold on crypto is meme coin Trog (TROG), with 210 billion coins equal to $1.86 million. At the time of writing, TROG prices surged 343% from $0.000002008 to $0.000008914 in the past 24 hours.

The most exciting part is that he holds TROG bigger than Ethereum (ETH), with $1.7 million, and the average price of Ethereum is $3,401. WETH (WETH) became the third largest crypto held, with 478 WETH, which is equal to $1.63 million.

Another million holds on crypto is themed-coin of his name, TRUMP with 579k or equals to $1.03 million. He mostly holds meme coins, including GUA, TUA, PUPPIES, and CZAR. Among those on the top list, Bitcoin (BTC) was not on the list as the biggest crypto that he holds.

Trump’s movement on crypto

Although he was ever known as anti-crypto back then in 2021, when he was not re-elected as U.S. President, now he is one of the most significant figures in the crypto industry.

When entering this year’s election, he eventually became pro-crypto as he attended the Bitcoin Conference 2024 in Nashville. He shares the pro-crypto program if re-elected, which includes Bitcoin Strategic Reserve and is supported by numerous Republican senators to propose the idea to Congress.

Now, he has been re-elected to the White House and chosen several names for his cabinet, some of which are identified as pro-crypto, including Robert F. Kennedy Jr and Elon Musk. Trump also chose Scott Bessent as the Secretary of Treasury, who he called as the “most pro-crypto treasury we’ve ever seen,”.

After a prolonged downtrend relative to bitcoin (BTC), Ethereum’s ether (ETH) is showing signs of a resurgence.

ETH, the second-largest cryptocurrency on the market, gained over 4% in the past 24 hours, while BTC lost 1.5% during the same time, dipping below $95,000 during the Monday session. ETH even outperformed the broad-market CoinDesk 20 Index, which was up 0.5%.

The outperformance happened as investors started to rotate capital to smaller, riskier cryptocurrencies over the weekend following the stall of bitcoin’s near-vertical surge since Donald Trump’s election victory. The ETH/BTC ratio, which measures ether’s strength vs. bitcoin, plummeted to as low as 0.0318 on Thursday, its weakest reading since March 2021, but the gague has gained 15% since to 0.3660 at press time.

“The market seems to be expecting BTC to trade sideways until December as attention shifts towards ETH in the near term,” digital asset hedge fund QCP said in a Monday note.

On the options markets, ETH risk reversals are heavily skewed in favor of frontend calls, meanwhile BTC calls seem to be more bid only from the end of December 2024 onwards, QCP noted. The positioning implies that traders anticipate ether to perform well in the short-term, while bitcoin could pick up pace next year. Risk reversal is a strategy that involves purchasing simultaneously a call option (bullish bet) and a put option (bearish bet) for a specific risk-reward profile.

ETH poised for a rebound vs. bitcoin

“We’re seeing some rotation from BTC to ETH coming from crypto-native hedge funds and family offices,” Joshua Lim from Arbelos Markets said.” Josh Lim, co-founder of crypto derivatives prime brokerage firm Arbelos Markets, said in a telegram message.

U.S.-listed spot ETH ETFs saw their first net inflows on Friday, led by $99 million allocation into BlackRock’s ETHA product, following six days of continuous outflows, data compiled by Farside Investors shows. Holders of ETHA include “the largest names in finance” including $80 billion hedge fund Millenium, analytics firm Kaiko said in a Monday report.

There could be more gains in store for ether against bitcoin in the coming period. The ETH/BTC ratio hit a key support level on Thursday and rebounded, while last week’s candle suggested a trend reversal, well-followed crypto trader Pentoshi noted.

“Quite possible the low is in here and that at least a short term reversal is coming,” Pentoshi said in an X post.

Bitcoin Stalls at $100K

Now extended far above its daily moving averages, bitcoin is likely trade sideways for a while as investors digest the steep rally since Donald Trump’s election victory, said Paul Howard, senior director at crypto trading firm Wincent.

“There is a significant sell wall at the psychological $100K level,” Howard told CoinDesk. “I would expect we oscillate around these levels until the new year. Staying market neutral and buying downside protection here is always a sensible risk reward,” he added.

Business intelligence firm MicroStrategy has significantly increased its Bitcoin (BTC) purchases this month in response to the bullish sentiment following President-elect Donald Trump’s victory on November 5. The company’s recent acquisitions have pushed its total Bitcoin holdings to approximately $38 billion.

Convertible Notes Fuel Massive Bitcoin Purchase

On November 25, co-founder Michael Saylor announced via social media that MicroStrategy had acquired 55,500 BTC between November 18 and November 24 for $5.4 billion. 

This purchase was funded by proceeds from a $3 billion convertible note issuance and sales of common shares, as detailed in a filing with the US Securities and Exchange Commission (SEC).

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Since beginning its Bitcoin acquisition strategy in 2020, Saylor has shifted from using corporate cash to a more complex funding model that involves selling convertible debt and shares. 

The latest convertible note was issued at a zero percent interest rate, reflecting lenders’ confidence that MicroStrategy’s stock will appreciate beyond the conversion price in the future. 

Jeffrey Park, a portfolio manager at Bitwise Asset Management, noted that Saylor has effectively leveraged financial arbitrage within the corporate treasury structure, allowing MicroStrategy to borrow funds at virtually no cost.

Saylor also revealed that MicroStrategy’s treasury operations have yielded a substantial 59.3% in Bitcoin returns year-to-date, translating to a net gain of approximately 112,125 BTC for shareholders, or about 341 BTC per day. 

At a projected price of $100,000 per BTC, Saylor stated that this could mean an impressive $11.2 billion for the year, equating to roughly $34.1 million daily.

Analyst Warns Of Risks In Leverage Strategy

Since its foray into Bitcoin, MicroStrategy has acquired a total of 386,700 tokens, with an average purchase price significantly lower than its current market value. 

The latest acquisitions occurred while Bitcoin prices were nearing all-time highs, with the company purchasing the new tokens at approximately $97,862 each, slightly above their current trading price.

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However, this leveraged strategy has raised concerns among some analysts, particularly after MicroStrategy’s shares (MSTR) fell by 16% last Thursday. 

Critics warn that if Bitcoin’s price declines sharply, the company’s stock could suffer similarly, recalling the downturn in 2022 when the cryptocurrency market experienced significant losses.

TD Cowen analyst Lance Vitanza remarked on the risks associated with leverage, stating, “When you apply leverage to anything, you amplify the returns both in the up direction and in the down direction.” He emphasized that MicroStrategy is a pioneer in applying this leverage strategy specifically to Bitcoin.

At the time of writing, the market’s leading crypto is trading at $95,350, registering a price decrease of 1.7% in the 24-hour time frame. 

Featured image from DALL-E, chart from TradingView.com