Blockchain

MicroStrategy recently revealed that they had acquired an additional 3,000 BTC this month, bringing its Bitcoin holdings to 193,000 BTC. Interestingly, BTC’s recent price surge caused these holdings to cross the $10 billion mark, with the software company currently sitting on a tremendous amount of unrealized profits. 

MicroStrategy’s Unrealized Profit Reaches $5 Billion

As disclosed in the company’s filing with the Securities and Exchange Commission (SEC), its BTC holdings have now been purchased for an average price of $31,544. That means that MicroStrategy’s Bitcoin investment is now at an unrealized profit of almost $5 billion, considering Bitcoin is trading just above $57,000. 

MicroStrategy’s ‘Bitcoin strategy,’ spearheaded by its co-founder Michael Saylor, began as far back as 2020 when the company started investing in the flagship crypto token. Saylor saw this as a way to hedge against inflation and diversify the company’s cash reserves. Since then, Saylor and his company have continued to accumulate Bitcoin aggressively. 

Saylor’s faith in Bitcoin was tested when the company’s investment was at an unrealized loss during the height of the crypto winter when BTC traded below the $30,000 price level. Despite that, Saylor and MicroStrategy stayed true to their Bitcoin Strategy. Instead of selling, they saw it as an opportunity to accumulate more BTC.

Saylor also recently made it clear that he and his company have no intention of liquidating their BTC holdings anytime soon, stating that “Bitcoin is the exit strategy.” This sentiment undoubtedly provides a bullish narrative for the flagship crypto, especially considering what could happen to the market if the company offloads its Bitcoin. 

MicroStrategy is currently the largest corporate holder of BTC and is leading the charge as institutional demand for BTC continues to increase. This demand has mainly come from the Spot Bitcoin ETFs, which together hold more BTC than MicroStrategy combined. 

Spot Bitcoin ETFs Trading Volume Surpass $2 Billion Again

Bloomberg analyst Eric Balchunas revealed that the newly listed Bitcoin ETFs once again surpassed the $2 billion mark on February 27. This was the second consecutive day they achieved this, having recorded an all-time high of $2.4 billion in trading volume on February 26. Specifically, the world’s largest asset manager, BlackRock, seems to be having a run of its own. 

Balchunas noted that BlackRock had broken its record again, with the iShares Bitcoin ETF (IBIT) recording a trading volume of $1.3 billion on February 27. The impressive demand for these funds is believed to be another reason why BTC’s price has continued to rally. 

At the time of writing, Bitcoin is trading at around $57,100, up in the last 24 hours, according to data from CoinMarketCap.  

XRP price is gaining pace above the $0.550 resistance. The bulls seem to be aiming for a move above the $0.60 and $0.62 resistance levels.

XRP started a fresh increase above the $0.550 resistance level.
The price is now trading above $0.575 and the 100 simple moving average (4 hours).
There was a break above a major contracting triangle with resistance at $0.560 on the 4-hour chart of the XRP/USD pair (data source from Kraken).
The pair could start a fresh rally if there is a close above the $0.60 resistance zone.

XRP Price Restarts Increase

In the past few days, XRP price recovered higher from the $0.530 zone. There was a move above the $0.545 and $0.550 resistance levels. However, the upside was less compared to Bitcoin and Ethereum.

There was a break above a major contracting triangle with resistance at $0.560 on the 4-hour chart of the XRP/USD pair. The pair traded as high as $0.5971, and it is currently consolidating gains. It tested the 23.6% Fib retracement level of the upward move from the $0.5290 swing low to the $0.5971 high.

Ripple’s token price is now trading above $0.575 and the 100 simple moving average (4 hours). On the upside, immediate resistance is near the $0.580 zone. The first key resistance is near $0.600, above which the price could rise toward the $0.620 resistance. A close above the $0.620 resistance zone could spark a strong increase.

Source: XRPUSD on TradingView.com

The next key resistance is near $0.650. If the bulls remain in action above the $0.650 resistance level, there could be a rally toward the $0.685 resistance. Any more gains might send the price toward the $0.70 resistance.

Another Decline?

If XRP fails to clear the $0.60 resistance zone, it could start another decline. Initial support on the downside is near the $0.575 zone.

The next major support is at $0.5630 or the 50% Fib retracement level of the upward move from the $0.5290 swing low to the $0.5971 high. If there is a downside break and a close below the $0.5630 level, the price might accelerate lower. In the stated case, the price could retest the $0.5350 support zone.

Technical Indicators

4-Hours MACD – The MACD for XRP/USD is now losing pace in the bullish zone.

4-Hours RSI (Relative Strength Index) – The RSI for XRP/USD is now above the 60 level.

Major Support Levels – $0.575, $0.563, and $0.5350.

Major Resistance Levels – $0.5950, $0.600, and $0.620.

Cardano (ADA) is among the few cryptocurrencies that are still observing loss-taking being the dominant behavior among investors.

Bitcoin & Ethereum See Profit-Taking, While Cardano Is Seeing Capitulation

According to data from the on-chain analytics firm Santiment, Bitcoin (BTC) and Ethereum (ETH) have both been seeing the investors majorly selling at profits, while Cardano has seen the loss-taking outweigh the profit-taking.

The indicator of interest here is the “Ratio of Daily On-Chain Transaction Volume in Profit to Loss,” which, as its name already suggests, tells us about how the loss-taking volume of any asset compares against its profit-taking volume.

This metric works by going through the transaction history of each coin currently being moved on the blockchain to see what price it moved at before this. If the previous transfer price for any coin was less than the spot value it is being sold at now, then its sale is contributing towards the profit-taking volume.

Similarly, the coins of the opposite type (that is, those with last price higher than the latest transfer price) add to the loss-taking volume. The indicator takes the total volume of each type and outputs their ratio.

Now, here is a chart that shows the trend in this ratio for a few different top cryptocurrencies over the last few months:

As displayed in the above graph, all of these assets, except for Cardano, have their Ratio of Daily On-Chain Transaction Volume in Profit to Loss sitting at positive values right now.

Such values of the metric imply the profit-taking volume is currently greater than the loss-taking volume for these assets. Ethereum, in particular, seems to have been observing the most aggressive profit-taking spree recently, as the cryptocurrency has been seeing about 2.3 green transactions for every underwater movement.

Bitcoin is seeing the second-highest ratio, with 1.8 profit-taking transactions taking place for every loss-taking transfer. It’s much more balanced for the altcoins, however, as XRP (XRP) and Litecoin (LTC) have only been witnessing minimally higher dominance of profit selling.

Cardano has outright been seeing the loss-taking volume pulling ahead of the profit-taking one, implying that the investors have been going through capitulation. These loss sellers may be ditching the asset in favor of Bitcoin and others, who have offered greener pastures recently.

Historically, the dominance of profit-taking has been something that has led to tops for cryptocurrencies. Loss-taking, on the other hand, has often facilitated bottoms to form as weaker hands flush out in such events and stronger, more resolute investors take their coins.

As such, Cardano has been behind the other top coins in this metric recently may mean that the coin could still have the potential to rise, whereas the others may be nearing possible tops.

ADA Price

While Cardano has performed worse than the likes of Bitcoin and Ethereum recently, its returns have still not been that bad as the asset is up 8% over the past week and trading around $0.63.

Ethereum price climbed to a new multi-month high above $3,300. ETH is consolidating while Bitcoin is gaining pace above the $60,000 resistance.

Ethereum extended its increase above the $3,300 resistance zone.
The price is trading above $3,250 and the 100-hourly Simple Moving Average.
There is a connecting bullish trend line forming with support at $3,320 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could extend its increase toward $3,420 or even $3,500 in the near term.

Ethereum Price Underperforms Bitcoin

Ethereum price started another steady increase from the $3,150 support zone. ETH cleared the $3,220 and $3,250 resistance levels to move further into a positive zone.

However, Bitcoin performed better and rallied significantly above the $58,000 resistance. It surged over 10% and even cleared the $60,000 level. Ether also managed to pump above $3,300. A new multi-week high is formed near $3,368 and the price is now consolidating gains.

It is trading above the 23.6% Fib retracement level of the upward wave from the $3,206 swing low to the $3,368 high. There is also a connecting bullish trend line forming with support at $3,320 on the hourly chart of ETH/USD.

Ethereum is now trading above $3,250 and the 100-hourly Simple Moving Average. Immediate resistance on the upside is near the $3,365 level. The first major resistance is near the $3,420 level. The next major resistance is near $3,450, above which the price might gain bullish momentum.

Source: ETHUSD on TradingView.com

If there is a move above the $3,500 resistance, Ether could even rally toward the $3,650 resistance. Any more gains might call for a test of $3,800.

Downside Correction In ETH?

If Ethereum fails to clear the $3,365 resistance, it could start a downside correction. Initial support on the downside is near the $3,320 level.

The first major support is near the $3,280 zone and the 61.8% Fib retracement level of the upward wave from the $3,206 swing low to the $3,368 high. The next key support could be the $3,160 zone. A clear move below the $3,160 support might send the price toward $3,120. Any more losses might send the price toward the $3,050 level.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now above the 50 level.

Major Support Level – $3,265

Major Resistance Level – $3,365

Bitcoin price action continues to pick up steam following unprecedented institutional demand amidst an asset supply that’s on the brink of being slashed by 50%. Today, the BTCUSD trading pair has broken cleanly above $60,000. What does this mean for the top cryptocurrency by market cap? Are new all-time highs just ahead?

Bitcoin Trades Above $60,000 For First Time Since 2021

Just one month ago, Bitcoin was still stuck below $50,000 and the launch of the first ever US spot BTC ETFs were considered a sell the news event. Now, with only a day left in February, Bitcoin price is showing serious strength with a more than 40% single month increase. Bullish momentum has pushed BTCUSD above $60,000 where it is trading currently.

The bullish price action is due to the market front-running the halving now that the the impact of the introduction of the first meaningful Bitcoin ETFs are understood. ETF providers yesterday added as much as 9,000 BTC to holdings, while miners only managed to produce 900 BTC in the same timeframe. This amount is slashed by 50% at the halving in less than two months, potentially prompting institutional FOMO (fear of missing out).

With Bitcoin now above $60,000 and around 13% away from all-time highs, new price records are within striking distance. After any cryptocurrency price takes out a current peak, price action moves into discovery due to a lack of sell orders in the order book. With no historical resistance to consider, Fibonacci ratios often help pinpoint there rallies will come to a conclusion.

According to the 1.272 Fibonacci, BTCUSD could begin finding psychological resistance around $94,000 per coin. The ultimate “top” of this rally could extend to the 1.618 Fibonacci, located at around $155,000 per BTC.

To hit $155,000 per coin, Bitcoin only needs a 161% advance from current levels. To put this into perspective, the top brass crypto asset is up more than 300% from the bottom set in 2022, and there wasn’t a bull market to speak of yet. With the bull market now undeniable, it isn’t unreasonable to assume BTCUSD could climb by 161% over the remainder of 2024.

Oliver Michel, CEO of Tokentus Investment AG, has made a bold assertion in the latest episode of Crypto Talk – a series produced for German television in collaboration with Der Aktionaer, regarding the future role of Ripple and XRP. Michel, leading one of Germany’s prominent venture capital firms, provided a deep dive into the operational excellence of Ripple Labs and the transformative potential of XRP within the financial sector.

Ripple IPO And XRP Price Expectations

Michel praised Ripple Labs for its professional management and strategic direction, aiming for a major initial public offering (IPO). He stressed the importance of Ripple’s approach to solving the inefficiencies of cross-border payments, distinguishing between the company’s operational framework and the utility of XRP.

“Ripple is a professional company […] It’s not a foundation where some people get together and say we’re going to do something. It’s a professional company with the ambition of a fairly large IPO,” Michel stated, emphasizing the solid foundation upon which Ripple builds its services.

Delving into the specifics of Ripple’s value proposition, Michel elaborated on the inefficiencies of traditional banking transactions across borders, highlighting the advantages of using XRP as a bridge currency.

He detailed, “You give it to the bank, exchange these euros for XRPs, put them on the ledger, i.e., on the blockchain, very quickly and without major costs […] This means that XRP is the bridge currency, XRP Ledger is the blockchain, the bridge and the liquidity pool.” This process, according to Michel, stands as a testament to Ripple’s innovative approach to leveraging blockchain technology for real-world financial operations.

Michel also shared insights into his investment strategy regarding XRP, noting his expectations for the cryptocurrency’s value. When queried when he plans to sell, he remarked, “I’ll think about it when it’s at $5. So, from now on, a tenfold increase. At $10, I think that would be super good.” These comments not only reveal Michel’s bullish outlook on XRP but also his nuanced understanding of the cryptocurrency’s market dynamics.

Michel further disclosed his dual investment in Ripple, holding both XRP coins and shares in Ripple Labs through Tokentus Investment AG and his family office. This strategic positioning underscores his confidence in Ripple’s dual offerings and his belief in their long-term potential.

“I have XRP coins, both in my family office and in Tokentus Investment AG. However, we also got involved in Ripple shares very early on, both via Tokentus and via the family office, via a preliminary company, via an SPV, a special purpose vehicle,” Michel elaborated, indicating a comprehensive investment approach towards the Ripple ecosystem.

German CEO Sees XRP As Global Currency Standard

Addressing the future of digital finance, Michel underscored the significance of XRP and Ripple’s On-Demand Liquidity (ODL) service in the evolving landscape of Central Bank Digital Currencies (CBDCs). He posited that Ripple’s infrastructure could become central to global financial systems, facilitating seamless and efficient transactions between central banks.

“This is actually the most exciting question […] If the banks work together via the backend, Ripple’s bridge technology is central, everything revolves around it,” Michel stated, highlighting Ripple’s potential to revolutionize financial transactions at a global scale.

Despite acknowledging the competitive landscape, including initiatives like the JP Morgan Coin, Michel’s confidence in Ripple’s unique value proposition remains unshaken. He concluded with a compelling vision for Ripple’s future, “If time plays in Ripple’s favor, then Ripple may well become the world reserve bridge currency.”

At press time, XRP traded at $0.57769 after being rejected at the 0.5 Fibonacci level once again.

The Bitcoin price has now successfully crossed the $59,000 level after an incredibly bullish month of February. The market leader has also barreled ahead of all expectations during this time as well, continuing to rally at a time when prices are expected to crash ahead of the next halving.

Institutional Investors Drive Bitcoin Price Higher

One of the major drivers behind the Bitcoin performance over the last day has been institutional investors. These investors have continued to take advantage of the opportunities provided by the Bitcoin Spot ETFs approved by the Securities and Exchange Commission (SEC) in January.

While there have been outflows from the Grayscale Bitcoin Trust due to concerns about high fees, the inflows have not slowed. On Tuesday, Bloomberg Analyst James Seyffart revealed that Spot ETF inflows rose once again, to cross $400 million in a single day.

In the same vein, the trading volumes have been on the rise. With demand soaring, volumes crossed $2 billion on Tuesday and it is the second time in a month that it has crossed this figure. This rise in both inflows and trading volumes shows a willingness among institutional investors to take positions in Bitcoin.

Fidelity Investments, one of the issues of the many Spot Bitcoin ETFs available for trading in the market, also recently encouraged investors to put a small portion of their portfolios in Bitcoin. According to the asset manager, a portfolio allocation of 1-3% in Bitcoin is ideal at this point.

Now, while a 1-3% allocation may seem small to the average investor, it is quite large when it comes to institutional investing. These portfolios are often made up of billions of dollars, and even a 1-3% allocation could work out to hundreds of millions of dollars being funneled into Bitcoin.

BTC Dominance Not Budging

While the price of Bitcoin has rallied in the last week, expectations are that Bitcoin will begin to consolidate and then give way to altcoins. However, the BTC dominance over the crypto market remains quite high, suggesting that the time for altcoins may not be here yet.

Presently, the BTC dominance is sitting at 54.1% after seeing a local peak of 54.4%.  This shows that Bitcoin is still leading the entire market by a large margin, and until this dominance subsides, Bitcoin will continue to lead the rally while altcoins lag behind.

For now, the bulls are focusing on maintaining support at $59,000, giving it a bounce point toward $60,000. With the previous all-time high at $69,000, the BTC price needs a less than 20% move from here to reach a new all-time high.

After rising 5% in the last day, Bitcoin (BTC) is now rapidly nearing the coveted $60,000 mark. This is because investor interest in the largest cryptocurrency in the world has reached levels last seen during a 2021 boom, bringing it very close to its all-time high.

Pre-Halving Rally? Bitcoin Nears $60K

The increase in price coincided with a surge in demand as spot bitcoin exchange-traded funds (ETFs) achieved trading volumes of over $3 billion cumulatively on Tuesday. Additionally, other traders cited the anticipated April bitcoin halving as the source of a fresh narrative that spurs a pre-halving increase.

The world’s most sought-after digital asset’s market cap has now reached $1.2 trillion, Coingecko data shows.

Joel Kruger, a market strategist at LMAX Group, stated that the market is “that much more determined to see the level retested and shattered” now that bitcoin is that much closer to retesting its record high.

Due mostly to the euphoria surrounding a number of spot bitcoin exchange-traded funds that began trading in January, bitcoin has increased by as much as 16% this week and 35% so far this year.

Bitcoin reached its highest level since November 2021 when it surpassed $59,000. The objective of the present surge is to see if the price can rise to $68,790, its all-time high. Six months before a stunning crash in 2022, that peak occurred.

According to Coinglass data, futures bets on lower bitcoin prices have taken on $25 million in liquidations since Asian morning hours, which could have contributed to the price rise.

‘Extreme Greed’ For BTC

In the meantime, on Wednesday, the Fear and Greed Index—a sentiment indicator that measures how quickly asset movement deviates from underlying fundamentals—flashed 82, signaling “extreme greed” and hitting its highest level in more than a year.

A scale of 0 to 100 represents the most anxious and 100 is the most greedy on the index. According to the index’s creators, an environment that is hungry is indicative of exuberance and shows the market is due for a correction.

Since the ETFs started trading on January 11, Bitcoin has increased by 24%. The current upward trend in pricing, according to Bitwise Asset Management analyst Ryan Rasmussen, is merely the beginning.

“The demand that ETFs are generating for the spot bitcoin market is substantially greater than the daily production of fresh supply,” he stated.

In the end, Rasmussen stated:

“What we’re witnessing is cryptocurrency kind of rising from the ashes of the 2022 market.”

The volume of bitcoin trades made thus far this quarter has exceeded the totals for each quarter of 2023 for the same period. Major cryptocurrency trading platforms like Coinbase Global (COIN) and Robinhood (HOOD) have benefited greatly from this activity. Between the start of January and now, those stocks have increased by 27% and 31%, respectively.

Featured image from Pexels, chart from TradingView

In a major shift within the financial industry, Fidelity Investments, with its colossal $12.6 trillion in assets under administration, is now recommending that the traditional 60/40 portfolio model should evolve to include a 1-3% allocation to crypto, specifically through its spot Bitcoin ETF (FBTC). This groundbreaking move is not just a nod to the burgeoning crypto market but a potential catalyst for unprecedented demand, potentially channeling hundreds of billions of dollars into Bitcoin.

Matt Ballensweig, Head of Go Network at BitGo, took to X (formerly Twitter) to express his anticipation, stating, “I’ve said this since the day of ETF approval – now that Pandora’s box has been opened, the multi-trillion dollar asset managers will sell BTC and crypto through their massive distribution channels for us. Fidelity now creates blueprint portfolios with 1-3% crypto.”

Echoing this sentiment, Will Clemente III, a renowned analyst, remarked on the potential ripple effects of Fidelity’s recommendation. “Fidelity now recommending a 1-3% crypto allocation in your portfolio. Gateway drug. What happens when that 1-3% becomes 3-6%? Slowly then suddenly,” Clemente noted, highlighting the potential for growth in crypto allocation.

What This Could Mean For Bitcoin Price

Adam Cochran, a partner at CEHV, further elaborated on the implications of Fidelity’s move for Bitcoin’s adoption and price trajectory. In a detailed analysis shared on X, Cochran laid out an ambitious future where the inclusion of crypto in traditional portfolios could lead to a substantial reevaluation of Bitcoin’s value. “How fucking wild is this to see. 60/40 portfolios are now 59/39/2,” Cochran began, underlining the historic milestone of crypto becoming a core asset class.

Cochran compares the adoption rates of the internet to cryptocurrency, stating, “Hell, the internet was 30 years in the making and didn’t reach 10m users till 1995. But the most non-conservative estimates put crypto ownership at 450M worldwide (conservative is more like 200M) that’s like the internet in 2001.”

He highlights the outsized economic impact of digital advancements, “Today the internet has somewhere around 5.5B users – 12x what it did in 2001. But according to BEA, the impact of the digital economy has been exponentially outsized with each year of growth.” By drawing this parallel, Cochran sets the stage for a crypto market that could see exponential growth in value and influence.

Cochran’s approach to calculating Bitcoin’s future valuation involves analyzing the potential influx of funds from traditional investments. “If that follows the change to 59/39/2, you’re looking at $1.6T in new buying… Given the current market is $2.24 trillion total marketcap… we get a cash to value rate of 9.3%.”

The core of Cochran’s analysis lies in his valuation prediction, where he states, “Prorata between coins at their current ratios and that’s $748,500 BTC and $43,635 ETH in raw spot buying. But since we know notional causes things to run, and we’ve got things like ETH’s yield demand and burn, we’re usually several multiples above the price of our raw spot demand.”

Cochran’s conclusion reflects a strong belief in the transformative potential of cryptocurrencies within traditional investment portfolios. “At the end of the day, even gold hasn’t broken into the 60/40 portfolio in a meaningful way, so I think blowing past the $12T mcap of gold by a good multiple over time is a no-brainer.”

At press time, BTC traded at $57,175.

Ripple’s XRP has been struggling to regain its momentum, as its performance continues to lag behind that of its competitors in the crypto market.

Recent data from CoinMarketCap reveals that XRP has been the most underperforming large-cap cryptocurrency over the past month, with gains of just over 4%. This stands in stark contrast to the significant increases seen in cryptocurrencies such as Bitcoin, Ethereum and Solana, to name a few, leaving investors disappointed and questioning the future of the digital asset.

Are Whales Slowly Losing Appetite For XRP?

Adding to the challenges, data from Santiment indicates that XRP whales, the major holders of the cryptocurrency, have shown a lack of confidence in the digital asset. The percentage of the coin’s supply in profit has declined from almost 90% in November last year to below 80% at present.

This decrease suggests that XRP whales have been selling their holdings rather than accumulating more, painting a bearish picture for the cryptocurrency’s future.

Furthermore, XRP whales have exhibited lower long exposure compared to retail investors, who are typically considered to have a better understanding of market trends. This lack of conviction among whales further dampens sentiment surrounding XRP.

Once a prominent player in the cryptocurrency market, XRP has experienced a significant decline in its influence. CoinMarketCap data highlights that XRP’s dominance in the market has plummeted from a peak of 30% in 2017 to a mere 1.48% as of February 2024.

The SEC lawsuit initiated against Ripple, the company behind XRP, along with the bear market of 2022, have taken a toll on the cryptocurrency’s value. Since reaching its peak in January 2018, XRP has lost nearly three-quarters of its market valuation, leaving investors and enthusiasts disheartened.

While the recent price action and market sentiment surrounding XRP may not inspire much optimism, the cryptocurrency landscape remains highly unpredictable. Investors and enthusiasts will closely monitor XRP’s ability to regain its footing and overcome the challenges it currently faces.

As the market continues to evolve, only time will reveal whether XRP can regain its former glory or if it will continue to struggle amidst fierce competition in the cryptocurrency space.

IMF Report Could Push XRP Price Up 

Despite these challenges, there are potential catalysts that could inject positive energy into the market. A recent report from the International Monetary Fund (IMF) on the importance of digital currencies has garnered investor interest.

The report examines the potential benefits of digital money in advancing public policy goals, such as financial inclusion and improved cross-border connectivity.

Notably, the report highlights Ripple’s partnership with Palau, where they are exploring plans to launch a sovereign stablecoin. This collaboration underscores Ripple’s global reach and its involvement in the development of central bank digital currencies and sovereign stablecoins.

XRP’s struggle to regain momentum and underperformance compared to its competitors have disappointed investors. The declining influence of XRP, coupled with a lack of confidence displayed by XRP whales, further amplifies concerns about the cryptocurrency’s future.

However, potential positive developments, such as the IMF report and Ripple’s partnership with Palau, offer a glimmer of hope amidst a challenging environment.

The sixth-largest cryptocurrency was trading at $0.56 at the time of writing, and bulls’ prior attempts to break through that barrier had failed.

Featured image from , chart from TradingView