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Bitcoin hits $64,000 milestone, set to challenge all-time high amidst surging optimism |
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Bitcoin showed several signals suggesting a rise beyond $69,000. The optimism around the forthcoming halving and interest rate cut could quicken the price increase.
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News- For the first time in almost three years, Bitcoin (BTC) hit $64,000, suggesting that the cryptocurrency could soon surpass its all-time high. |
Within the last seven days, BTC has increased by an amazing 20.35%. However, this incredible run was not without cause. For some weeks, the sentiment around Bitcoin has been surging with optimism. |
ETFs continue to impress - One reason for this is how Bitcoin ETF volume has been registering amazing milestones. On February 28, the ETFs shattered previous records and surpassed $7 billion in daily trading volume. This increase implies increased demand for BTC exposure. |
However, institutional capital is not the only reason Bitcoin has been surging or could surpass $69,000 in the next few days. Retail investors, who have been on the sidelines for a long while, seem to have returned. But what confirmed this bias? |
Retail investors are more spectators - On the same day Bitcoin crossed $64,000, spot trading volume on Centralized Exchanges (CEXes) hit $34.05 billion. The last time the market had such volume was during the FTX crash. |
At some point, users were not able to access Coinbase, one of the world's largest exchanges, due to congestion. With these happening, one can conclude that institutional capital is not alone in driving higher prices. |
Time for the halving to show its strength? Furthermore, on-chain data revealed that Bitcoin active addresses have been flying high as 95% of holders are in profit. Typically, this is supposed to trigger a wave of profit-taking. But with the halving close and anticipation of an interest rate cut in March, that might not be the case. If demand for BTC continues to increase, the price might cross into the $70,000 region. |
No one was spared- In the meantime, it is important to mention that Bitcoin's price movements caused a cascade of liquidations when the price jumped. At first, the pump to $64,000 liquidated many shorts. |
Later on, longs who have been enjoying the upswing became casualty as the price crashed to $61,000. Between the rise and fall, almost $800 million in perp positions were liquidated. |
Terraform Labs may be 'in soup' as SEC drops a bombshell |
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News- The U.S. Securities and Exchange Commission (SEC) has put Terraform Labs on the spot, claiming that the bankrupt firm was involved in illegal activities. According to the SEC, Terraform Labs paid an "ungodly" $166 million to retain the services of Denton U.S. LLC. |
The regulator claimed that the firm paid $122 million out of that money three months before it filed for bankruptcy. At press time, the SEC argued that a chunk of the funds had been used to cover Terra's legal fees. |
Was the firm dubious? Meanwhile, it noted that the Denton account still had about $81 million left. For a company that claimed to be struggling with finances, paying that money could imply that Terraform Labs lied when it filed for Chapter 11 bankruptcy. |
If investigations find this allegation to be true, it could spell trouble for the company. The SEC, in backing up its argument, mentioned that the funds were used to cover the legal bills of Do Kwon. The former Terra CEO currently faces criminal charges in far-away Montenegro. |
Do Kwon is in the mix - In addition, the SEC mentioned that funding Kwon's bills when he was no longer CEO was wrong. Terra's troubles have been going on for a while. In 2022, the company's project LUNA and algorithmic stablecoin crashed. |
Concerning the event, the SEC charged Kwon with pre-meditated fraud. As of this writing, the embattled Kwon had not yet been extradited from Montenegro after his arrest in March 2023. |
PEPE leads memecoin rally, hits $1.29B market cap amid meme season speculation |
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News- Pepe's (PEPE) 152.96% increase in the last seven days has helped the memecoin to recapture a $1 billion market cap. As of this writing, PEPE's market cap was $1.29 billion, underscoring how the token has been one of this week's best performers. |
However, PEPE is not the only memecoin enjoying this goodwill. The likes of Dogecoin (DOGE), Bonk (BONK), and Shiba Inu (SHIB) registered significant price hikes within the same period. Does this mean the meme season is here? |
Bears may be lurking - Well, on-chain data confirmed a surge in social volume, meaning more eyes were looking at PEPE. Despite that, some other metrics revealed a bearish bias. For instance, the Weighted Sentiment reading was negative, implying that market participants were not convinced about the continuation of the rally. |
Another metric that displayed a bearish stance was the exchange inflow. A decrease in the exchange inflow would have indicated less likelihood of selling pressure. However, analysis showed that the exchange inflow surged. This implied that those who have made gains from PEPE were willing to book profits. |
Is it time to cool down? Like the on-chain metrics analyzed, technical indicators also reinforced the selling pressure thesis. Going forward, PEPE's price might retrace from its all-time high which it recently hit. |
However, the long-term prospect of the cryptocurrency remains one to watch. If the market conditions continue to stay bullish, then PEPE could rise past $0.00000239 over the coming weeks. |
El Salvador disappoints naysayers, reveals impressive profit margin |
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News- Nayib Bukele, Bitcoin-believing president of El Salvador, seems to be having the last laugh after he revealed that the country's BTC holdings were up 40%. |
Bukele disclosed this on X on February 28, in a post that seemed to be directed at his critics. The president experienced intense reproval after he publicly revealed that the country had bought Bitcoin. |
Haters gon' hate but who wins? On several occasions, major publications attacked the president for the decision, with many calling it a bad economic decision. But Bukele did not budge. Instead, he freed himself from doubt and stuck to his belief. |
El Salvador first acquired Bitcoin in September 2021. Overall, the country owns 2,381 BTC which were purchased at an average price of $44,292. With Bitcoin rising above $60,000, the assets were worth over $147 million. However, Bukele hinted that the country does not plan to sell soon. |
There is more to come - Furthermore, the nation could soon experience a bit of stability considering its other assets. For instance, its bonds surged by 80% over the last year, indicating that El Salvador was on course to pay its debt which is due by 2025. |
Per past comments, Bitcoin might remain a long-term asset for the country. Previously, the president mentioned that people who make a BTC donation to El Salvador have the opportunity to become citizens. At press time, that stance has not changed. |
More stories from the crypto ecosystem |
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Interesting facts |
Before China's crackdown on cryptocurrencies, the country used to account for a whopping 65% of the global crypto miners. This was as of May 2021. But by August of the same year, the strict actions forced China's share of the global hashrate to zero. This decline meant that miners in the country could no longer access computational power for their activities. As of January 2022, 458,814 token contracts had been created on the Ethereum blockchain. Around the same period, Binance Smart Chain had about 1.73 million token contracts. The numbers were this high because both blockchains allowed easy access to smart contracts for creating a token. A 2021 Chainalysis report confirmed that cryptocurrency adoption is high in South America and Asia (apart from East Asia) because of the currency instability, poverty, and the ease of using cryptocurrencies. Out of the other developing continents, Africa comes next.
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Top 3 coins of the day |
XRP |
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What you should know - At a time when numerous cryptocurrencies are appreciating, XRP's price action has been largely underwhelming. On the daily timeframe, the token was finding it hard to break through the $0.60 psychological resistance. However, the Relative Strength Index (RSI) indicated a solid buying momentum. Should bulls continue to control the narrative, XRP's price might extend beyond $0.60. But the token could face another hurdle around $0.70— the next major resistance. If it successfully breaches the region, XRP could rise to $0.86 where the 3.618 Fibonaccil level was positioned. On the other hand, rejection at $0.70 could force the price back to $0.58 (the 0.618 Fib retracement point). |
Arkham (ARKM) |
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What you should know - Using the Exponential Moving Average, ARKM reinforced the bias that it was not yet done with its incredible surge. At press time, the 20 EMA (blue) had crossed over the 50 EMA (yellow). ARKM, while riding on the booming AI hype, left its consolidation phase in the first week of February. Despite the recent pump, traders might need to watch out for the support at $0.43. Profit-taking could lead the price to drop. However, if bulls defend the critical support, ARKM's price might rebound. In the meantime, the RSI was in the overbought region, suggesting that the token's value could retrace in the short term. |
Toncoin (TON) |
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What you should know - Telegram's announcement to use TON as its revenue-sharing token drove the price higher. From the 4-hour TON/USD chart, a bullish engulfing candle appeared as a result of the development. But after hitting $2.74, TON faced rejection as a red candlestick confirmed its decline below $2.50. However, bulls made attempts to retest the rejection area while banking on another support at $2.52. Furthermore, the Moving Average Convergence Divergence (MACD) remained positive, indicating a bullish momentum for the token. |
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