Monthly Review of November 2024

This monthly review examines the key cryptocurrency news from November. The most significant cryptocurrency news in November revolved around the increasing bitcoin holdings of U.S. companies, the record popularity of U.S. Bitcoin spot ETFs, advancements in Detroit and Pennsylvania, improvements in the status of cryptocurrencies in Asia, and the activities of European entities related to cryptocurrencies.

              
November in the Cryptocurrency Market
 
November was a highly positive period for cryptocurrency price movements. The price of Bitcoin reached new all-time highs multiple times during the month, peaking close to the $100,000 mark. Of the cryptocurrencies offered by Northcrypto, the best-performing cryptocurrency of November was Dogecoin, which saw its price surge by over 170% during the month. The prices of Polygon and Chainlink also increased significantly, rising by approximately 94% and 73%, respectively. ApeCoin gained nearly 60%, while Ethereum, Aave, and Litecoin saw price increases of around 52–54%. Solana and Bitcoin experienced price increases of about 47% and 42%, respectively, in November. 
U.S. Companies' Bitcoin Holdings Continue to Grow
The U.S. company MicroStrategy, which offers business intelligence solutions, cloud-based services, and mobile software, made three bitcoin purchases in November. MicroStrategy’s bitcoin holdings increased by over 130,000, from approximately 252,220 to around 385,700 bitcoins. A significant portion of the purchases made in November was funded through convertible senior notes. Following these purchases, the average acquisition price of MicroStrategy’s bitcoins is approximately €54,000, with the company's bitcoin holdings generating nearly €21 billion in unrealized gains by the end of the month.
In addition to MicroStrategy, the U.S.-based Bitcoin mining company Marathon Digital also increased its bitcoin holdings in November. Marathon announced that it raised funds through convertible notes and used the proceeds primarily to purchase bitcoin. After November's purchase, Marathon’s bitcoin holdings grew to about 33,875 bitcoins, valued at approximately €3.1 billion at the end of the month.
Record-High Popularity of U.S. Bitcoin Spot ETFs
In addition to Bitcoin all-time high prices, U.S. Bitcoin spot ETFs broke records in November. These ETFs saw their largest-ever net inflows of funds, both on a single day and over a single week. On November 7, net inflows of approximately $1.37 billion were recorded, with a significant portion going to BlackRock's ETF, the largest asset manager globally, which received around $1.12 billion in net inflows. Subsequently, during week 47, the ETFs experienced the highest weekly net inflows ever, with approximately $3.35 billion flowing in. For the entire month of November, net inflows into Bitcoin spot ETFs totaled just under $3 billion.
Progress in Cryptocurrency Adoption in Detroit and Pennsylvania
The city of Detroit in Michigan, located in the northern U.S., announced in early November plans to accept cryptocurrencies for tax payments and other city fees. This payment option will become available in mid-2025, and it will be implemented in collaboration with PayPal. Detroit is set to become the largest U.S. city to adopt cryptocurrencies as a payment method, with a population of over 630,000.
Additionally, positive cryptocurrency news emerged from Pennsylvania, located in the northeastern U.S. A bill was proposed in Pennsylvania that would allow the state to purchase bitcoin for its balance sheet. If the bill is passed, Pennsylvania would be able to allocate up to 10% of its balance sheet to bitcoin, potentially representing an investment in the billions.
The Status of Cryptocurrencies Improves in Asia
In late November, positive news about the status of cryptocurrencies emerged from China, where the Songjiang People's Court in Shanghai clarified that owning cryptocurrencies is not illegal. According to the court, cryptocurrencies possess property attributes under Chinese law, meaning they can be considered personal property.
Another significant cryptocurrency development in Asia came from ZA Bank in Hong Kong. Hong Kong's largest digital bank announced that it had begun offering cryptocurrency trading services to its retail customers. According to the announcement, ZA Bank is the first Asian bank to provide such services. Cryptocurrency trading can now be conducted directly within ZA Bank's mobile banking application.
Cryptocurrency-related Activities of European Entities
Europe’s largest telecommunications operator, Deutsche Telekom, announced in early November its plans to begin Bitcoin mining. Specifically, the mining will be conducted by Deutsche Telekom’s subsidiary MMS in collaboration with the private banking company Bankhaus Metzler. The mining project aims to use electricity generated from renewable energy sources that would otherwise go unused. According to Deutsche Telekom, Bitcoin mining could play an essential role in balancing supply and demand in energy networks in the future.
It was also revealed in November that the British pension investment specialist Cartwright advised a pension fund to invest in bitcoin for the first time. While the name of the pension fund was not disclosed, the bitcoin investment amounted to 3% of the assets managed by the fund. Unlike in similar cases, the investment was made directly in bitcoin rather than through, for example, a Bitcoin ETF.
Summary
In November, both MicroStrategy and Marathon Digital continued increasing their bitcoin holdings as expected. MicroStrategy’s recent purchases have been particularly significant, evident when comparing the amount of bitcoin purchased to the number of bitcoins mined during the same period. In November, MicroStrategy's bitcoin acquisitions were roughly ten times the 13,500 bitcoins mined during that time. Such substantial demand relative to the supply of newly mined bitcoins highlights the current supply-demand dynamics of Bitcoin, creating favorable conditions for its price development.
The record-breaking popularity of U.S. Bitcoin spot ETFs continued in November. Like corporate acquisitions, ETFs create sustained demand for bitcoins. If such demand persists, it may also mitigate potential price declines during possible bear markets.
In recent years, U.S. cities and states have become increasingly active in engaging with cryptocurrencies. Detroit’s decision to accept cryptocurrencies as a payment method and Pennsylvania's proposed bill to purchase bitcoin demonstrate the growing acceptance of cryptocurrencies in the U.S. and reflect a generally favorable cryptocurrency sentiment emerging in the country.
In addition to the U.S., the status of cryptocurrencies improved in both Europe and Asia in November. The legal recognition of cryptocurrencies as personal property in Shanghai marked a significant step forward for China’s regulatory environment, which has become increasingly positive over the past two years. This shift likely encouraged entities like ZA Bank to take their first steps into the cryptocurrency market.
Meanwhile, in Europe, Deutsche Telekom’s decision to start Bitcoin mining and a British pension fund's bitcoin investment are among the first such initiatives. These developments may well set a trend for traditional entities entering Bitcoin mining and pension funds investing in bitcoin in Europe in the coming years.

Ville Viitaharju
Cryptocurrency specialist