Reports galore
that trump campaign is getting huge Crypto funds
By Arun Kumar Shrivastav
Bitcoin and other cryptocurrencies plummeted on Friday, mirroring a broader market sell-off triggered by a weaker-than-expected US jobs report. The digital asset's attempt to rally early in the day was short-lived as investors opted for safer havens amid escalating economic uncertainties.
Bitcoin tumbled over 4% to below $63,000, while the broader cryptocurrency market dropped nearly 3%. Ethereum, Solana, Uniswap, and Chainlink were among the hardest hit, each declining by 4-5%.
The broader financial markets also experienced a sharp downturn, with the Nasdaq and S&P 500 falling by 3.1% and 2.7%, respectively. Amazon's 11% post-earnings decline and Nvidia's 5% drop exacerbated the sell-off. The Volatility Index (VIX) surged by 54%, indicating heightened investor anxiety.
The crypto market's woes were compounded by external factors. Japan's Nikkei index continued its downward spiral, dropping 5.8% following a 4% decline the previous day. This was attributed to the Bank of Japan's decision to slightly increase its benchmark lending rate.
Furthermore, the movement of nearly $2 billion worth of Bitcoin and Ethereum from wallets linked to bankrupt cryptocurrency lender Genesis Trading added to the bearish sentiment. This action, believed to be for in-kind repayments to creditors, intensified concerns about the overall health of the crypto industry.
The confluence of these factors has created a perfect storm for the cryptocurrency market, with investors increasingly wary of the asset class.
Bitcoin analysts PlanB and Rekt Capital have shared their insights into the leading cryptocurrency's potential trajectory. PlanB, creator of the Stock-to-Flow (S2F) model, predicts a Bitcoin bull run based on on-chain data and technical indicators. Meanwhile, Rekt Capital identifies a key trading range that could influence Bitcoin's price action in the near future.
PlanB argued that the current market cycle was in its early stages, leaving ample room for price growth. Bitcoin's scarcity after the April 2024 halving event was another bullish factor, as historical data showed a price surge roughly three months after halvings. Bitcoin's Relative Strength Index (RSI) currently stands at 67, indicating the asset is neither overbought nor oversold, suggesting a potential for upward movement.
The 200-week moving average (WMA) sits at $38,000 that is trending upwards, signaling a potential bull run. PlanB also points to the realized BTC price of $65,000, which is high and rising.
With over 90% of Bitcoin investors currently in profit, PlanB anticipates increased holding and reduced selling pressure. Additionally, high realized returns could incentivize further investment and continued gains.
Meanwhile, crypto analyst Rekt Capital identifies a new trading range for Bitcoin between $65,000 and $71,500. This “cluster” suggests $65,000 will act as a key support level, while $71,500 serves as the primary resistance level. Rekt Capital predicts Bitcoin's price will fluctuate within this range.
While the price cluster formation does not indicate a specific price direction, it suggests a period of consolidation. This could eventually lead to a breakout, either upwards or downwards, depending on whether bulls overpower bears or vice versa.
Despite posting a quarterly loss and writing down the value of its bitcoin holdings, software company MicroStrategy has found a staunch ally in Wall Street. Benchmark has raised its price target to $2,150, a Wall Street high, signalling unwavering confidence in the company's bitcoin-centric strategy.
The bold move comes as MicroStrategy reported a net loss of $102.6 million for the second quarter, primarily due to an $180.1 million impairment charge on its bitcoin holdings. The company now owns 226,500 bitcoin, acquired at an average price of $36,821 per coin.
However, Benchmark analyst Mark Palmer remains bullish on the stock, citing its exceptional performance since adopting bitcoin as its primary treasury reserve asset in August 2020. Micro-Strategy's share price has soared 1,206% since then, outpacing both bitcoin and major stock indices.
To provide investors with a clearer view of the company's bitcoin strategy, Micro-Strategy introduced a new key performance indicator: Bitcoin Yield. This metric tracks the percentage change in the ratio of the company's bitcoin holdings to its diluted shares outstanding. The company targets a Bitcoin Yield of 4% to 8% annually over the next three years.
While MicroStrategy's stock dipped slightly on Friday, it outperformed the broader Crypto-Currency market, which experienced a significant downturn.
(IPA Service)
