Bitcoin struggles at the $ 28,000 level, US Micro Strategy buys more and holds 140,000 BTC

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Macroeconomics and financial markets

In the US NY stock market on the 5th, the Dow closed 80 dollars (0.24%) lower than the previous day, and the Nasdaq index closed 1.07% lower. Weak economic data is fueling fears of a recession.

connection:Nasdaq and AI-related stocks sharply lower US recession concerns grow | 6th Financial Tankan

connection:Stock investment recommended for cryptocurrency investors, representative cryptocurrency stocks of Japan and the United States “10 selections”

Virtual currency market

In the crypto asset (virtual currency) market, Bitcoin fell 1.78% from the previous day to $28,059.

BTC/USD daily

The topside is weighed down as the $30,000 psychological milestone looms.

The creator of Bollinger Bands, John A. Bollinger, mentioned the Bollinger Bands squeeze.

The shift from squeezing with narrowing bands to expanding bands suggests increased volatility (price volatility).

bollinger bands

Trading volumes in the US have fallen by more than 80% in less than three weeks, according to cryptocurrency data tracking firm kaiko.

There is a section that tightened regulations by the US financial authorities, such as the US SEC (Securities and Exchange Commission)’s Wells notice to Coinbase and the CFTC (US Commodity Futures Trading Commission)’s lawsuit against Binance, have led to a decline in the bitcoin market volume. The failures of Silvergate Bank and Signature Bank also led to a drop in liquidity on exchanges.

Under such circumstances, US Microstrategy announced an additional purchase of 1045 BTC. Due to repeated purchases so far, the average acquisition price of Bitcoin is $ 29,803.

connection:MicroStrategy buys $3.8 billion worth of Bitcoin

The company holds 140,000 BTC, or 0.66% of the total supply of 21 million BTC.

In addition, following the bankruptcy of Silvergate Bank, the company announced that it has already paid off the $205 million loan it borrowed from the company with Bitcoin as collateral.

ethereum

The Shanghai (Shapella) upgrade, scheduled for the 12th, will implement the staking and withdrawal of staking rewards that have accumulated so far, raising concerns that it will bring significant selling pressure in the short term. be.

In this regard, data analytics firm CryptoQuant analyzed that “selling pressure may fall short of market expectations.”

The background is the market environment. It is pointed out that the current ETH price is at the unrealized loss level of 9.7 million ETH, which is more than half of the Ethereum (17.9 million ETH) staked over the past few years. The pool of Lido Finance, the largest liquid staking protocol, is similar, and it is more likely to continue staking than to cut losses.

About 9.7 million ETH deposited in the beacon chain is mainly institutional investor funds (smart money), and is believed to have been locked from the second half of 2020 to 2021 during the bull market.

connection:What is the ETH “Shanghai” upgrade?Summary of each company’s view on staking cancellation and ETH selling pressure

According to data from The Bolock, Ethereum (ETH) put and call option open interest ratio rose to 0.47, the highest level since May last year when the Terra (LUNA) shock triggered a crypto market crash.

Besides demand for hedging price volatility risk using options trading, the decline in call option ratios suggests an increasing bearish outlook by market participants.

connection:A Pro Explains: Reading the Market from Bitcoin Options Open Interest

Click here for a list of market reports published in the past

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