Bitcoin

It’s been a monumental week in the world of digital assets, with investment funds seeing a staggering $2.7 billion of inflows, pushing the year-to-date total to an impressive $10.3 billion. This trend suggests that the record annual inflow of $10.3 billion in 2021 could be surpassed as early as next week, not even three months into 2024.

**Bitcoin (BTC)** is at the forefront of this investment wave, contributing $2.6 billion to last week’s inflows. The launch of U.S.-based spot ETFs has played a significant role, with thousands of coins being added daily amid a major price rally. This year, bitcoin inflows have risen to account for 14% of bitcoin assets under management.

Looking at other notable tokens, **Solana (SOL)** also made headlines with $24 million in inflows last week. Moreover, Bitcoin reached a new lifetime high, breaking the $72,000 mark and setting the stage for a potentially groundbreaking year for cryptocurrencies.

Imagine a world where the glint of gold is not from a metal bar, but from a digital currency. Michael Saylor, the Executive Chairman of MicroStrategy, believes Bitcoin is on the verge of doing just that. He confidently stated, “Bitcoin is digital gold and it’s going to eat gold.” With its remarkable attributes, Bitcoin outshines gold by being more accessible, secure, and efficient.

MicroStrategy’s recent acquisition of an additional 12,000 Bitcoin, boosting their total to 205,000 tokens, showcases their belief in Bitcoin’s enduring value. This strategic move not only underscores the company’s confidence in Bitcoin but also highlights the cryptocurrency’s growing acceptance and value. Bitcoin has indeed surpassed silver to become the world’s eighth most valuable asset, with a market cap soaring above $1.4 trillion.

Moreover, Saylor highlights an exciting event for Bitcoin enthusiasts – the upcoming Bitcoin halving in April. This event is anticipated to further fuel Bitcoin’s value as the supply of new tokens will be halved, making it even more scarce and desirable. As the world watches Bitcoin’s ascent, it’s clear that it’s not just challenging gold’s supremacy but also redefining the very concept of value storage and investment in the digital age.

Recently, there’s been a buzz about Dynamic Dollar-Cost Averaging (DCA) in the crypto community. Unlike traditional DCA, dynamic DCA is a flexible approach that adjusts investments based on market conditions. The goal is to invest more during bear markets and less or exit during bull markets by using various metrics and indicators.

Backtesting this strategy has shown higher returns and reduced emotional stress. It’s about making smarter decisions, whether it’s taking profits during bull runs or adjusting your investment amounts.

Here’s a quick guide to getting started with dynamic DCA:

1. Select a Risk Metric: Choose a reliable metric to gauge the market’s state. A good metric can tell you when the market is overbought or oversold.
2. Set Your Risk Thresholds: Define the risk levels at which you’ll invest more, hold, or sell. For example, you might invest more as the risk decreases and start exiting the market as the risk increases.
3. Stick to Your Strategy: Regularly check the risk metric and adjust your investments accordingly. Consistency is key.

There are several risk metrics available, each with its strengths and weaknesses. Here are a few that stand out:

• S Tier: AlphaSquared’s Risk Metric and Benjamin Cowen’s Risk Indicator are top choices for their accuracy and comprehensive analysis.
• A Tier: CoinTalksCrypto’s Bitcoin Bull Run Index is a decent free option, though it has its limitations.
• B Tier: Tools like Bitcoin Risk Level and LookIntoBitcoin’s Reserve Risk offer useful insights for dynamic DCA.
• C Tier: The Fear and Greed Index is more of a sentiment gauge and may be less useful for dynamic DCA.

Dynamic DCA isn’t about timing the market perfectly; it’s about making informed decisions and adjusting your investments based on market conditions. With the right approach and tools, dynamic DCA can be a powerful strategy for crypto investing.

Over the weekend, Pershing Square Capital Management’s founder and CEO, Bill Ackman, shared his intriguing thoughts on Bitcoin (BTC). He playfully suggested a scenario where the price of Bitcoin could skyrocket beyond imagination.

Ackman’s hypothesis goes like this: “Bitcoin’s price rise leads to increased mining and greater energy use, driving up the cost of energy, causing inflation to rise and the dollar to decline, driving demand for Bitcoin and increased mining, driving demand for energy, and the cycle continues.” He then humorously added, “Bitcoin goes to infinity, energy prices skyrocket, and the economy collapses. Maybe I should buy some Bitcoin.”

However, Ackman also acknowledged the flip side, noting that this cycle could also work in reverse. His comments quickly sparked a conversation within the Bitcoin community, with notable figures like MicroStrategy’s founder and Executive Chairman, Michael Saylor, chiming in. Saylor offered to discuss the matter further with Ackman, pointing out that most Bitcoin miners are actually driving down the cost of electricity for other consumers.

While Ackman has mostly kept his distance from Bitcoin and cryptocurrencies, he did reveal in 2022 that he had invested in some crypto projects and venture funds as a hobbyist eager to learn more about the space.

Welcome to a thrilling week in the world of Bitcoin as it dances with fresh all-time highs, showcasing the indomitable spirit of BTC price volatility.

Bitcoin has not only achieved its highest-ever weekly close but continues to defy expectations. The tussle between bulls and bears intensifies, with Bitcoin navigating through a familiar yet exhilarating path of resistance and support, courtesy of spot ETFs and market sentiment.

The influence of ETF buying has taken many by surprise, prompting even the staunchest bulls to rethink their long-term BTC price forecasts. Could $1 million per Bitcoin be a modest prediction?

On the flip side, the rapid pace of the bull run raises concerns about a potential macro price peak. But, with pivotal US macro data and Federal Reserve decisions on the horizon, all eyes are on Bitcoin’s next move.

Bitcoin miners are also in the spotlight, strategically securing profits as we edge closer to April’s block subsidy halving.

Join us as we dive deeper into these developments and explore what might be next for Bitcoin’s price in this week’s must-read analysis.

Bitcoin’s journey to breaking the $71,000 barrier is nothing short of historic, further energized by the approval of spot bitcoin ETFs in the U.S., marking a significant milestone for the cryptocurrency.

The rally has not only lifted spirits but also the futures premium, hinting at an influx of traders and heightened market liquidity.

In just under two months, the BlackRock iShares Bitcoin ETF (IBIT) has outpaced MicroStrategy (MSTR) in terms of bitcoin (BTC) holdings. Recent disclosures reveal that IBIT had a staggering 195,985 bitcoins as of last Friday, following a significant influx. In contrast, MicroStrategy’s latest public records from February 26 show a holding of 193,000 tokens.

There’s speculation that MicroStrategy may have increased its holdings since then, especially after the company announced a $700 million capital raise earlier this week, with plans to invest in more bitcoin. Since the introduction of spot ETFs on January 11, IBIT has consistently added hundreds of millions of dollars worth of bitcoin daily, positioning itself as the largest of the new spot products, with the exception of the Grayscale Bitcoin Trust.

Next in line for IBIT would be Grayscale’s GBTC, which, despite losing over 200,000 bitcoins since the launch of the spot products, still holds approximately 400,000 tokens. The massive demand for these new spot ETFs is a major driving force behind bitcoin’s impressive price surge of over 60% this year. The cryptocurrency reached a record-breaking high of $70,136 on Friday morning, as per CoinDesk Indices, and was trading just below the $70,000 mark at the time of writing.

In a groundbreaking move, BlackRock, the world’s leading asset manager with a staggering $9.1 trillion in assets under management, has announced its plans to dive into the world of cryptocurrencies by purchasing spot bitcoin exchange traded products (ETPs), including its own IBIT product. This strategic decision will involve the firm’s Global Allocation Fund, boasting an $18 billion AUM, and its $36.7 billion AUM Strategic Income Opportunities Fund.

Spot bitcoin ETPs have been making waves since their approval earlier this year, with BlackRock’s iShares Bitcoin Trust (IBIT) capturing the spotlight for its record-breaking daily inflows. This marks a significant pivot in investment strategies, blending traditional financial markets with the burgeoning digital asset sphere.

BlackRock’s move is seen as a vote of confidence in Bitcoin’s future, potentially positioning the cryptocurrency alongside traditional investment assets. As BlackRock integrates Bitcoin ETPs into its investment portfolios, it paves the way for traditional finance to embrace digital currencies, heralding a new chapter in investment history.

Hello, crypto enthusiasts! Ever found yourself in a bit of a pickle, deciding whether to cash out your crypto investments early and face the taxman or hold on a bit longer for tax-free gains? You’re not alone in this financial conundrum.

Last year, I jumped on the Bitcoin (BTC) and Ethereum (ETH) bandwagon a tad late, and now, the profits look tempting. Yet, here’s the twist: sell before the 12-month mark, and I’m looking at a 24% tax on my gains. Wait until after August 1, though, and those profits could be tax-free.

It’s a classic investor’s dilemma with no easy answers. On one hand, a 24% tax seems palatable compared to a potential 50% market dip post-June. On the other, what if the market defies gravity, and I miss out on even bigger gains by cashing out too soon?

Options on my mind include selling in a lump sum or via Dollar-Cost Averaging (DCA), both with taxes due, or waiting it out until August to dodge the taxes altogether. Of course, there’s always the wildcard option of just holding on (HODL), despite the looming possibility of a market correction.

The taxing of cryptocurrencies as assets rather than currencies has sparked debate, with many voicing concerns over the perceived unfairness. It’s a hot topic that underscores the importance of advocacy for fair crypto taxation policies.

So, what’s your take? Would you opt for the early sell and tax hit, or play the long game for tax-free gains?

In a fascinating turn of events, a Bitcoin mega whale has made waves in the crypto ocean by moving 1,000 vintage bitcoins from 2010, as Bitcoin soared to a peak value of $69,210. This movement, valued at approximately $63.29 million at current exchange rates, harks back to the early days of Bitcoin, when the digital currency was valued at or below $0.39.

The transferred bitcoins, originally mined in the latter months of 2010, were part of 20 block rewards shifted in a series of transactions. This act has reignited curiosity and speculation within the crypto community about the identity and motives of this enigmatic entity, especially as it coincided with Bitcoin reaching its highest price point.

This isn’t the first rodeo for our mysterious whale; their historical pattern of transactions suggests a penchant for pivotal moments, hinting at a deep understanding and strategic manipulation of the market. With every movement, the allure of Bitcoin’s early mined coins and the shadows of its origins become even more intriguing.

As the crypto world buzzes with theories and excitement, the identity of the whale remains a well-kept secret. What could be the next move for this cryptic mover of mountains? Only time will tell, but one thing is clear: the legacy of Bitcoin’s early days continues to cast a long shadow over its present and future.

El Salvador’s Bitcoin journey has reached new heights, with its holdings now valued at over $164 million, marking a record achievement for the nation. This strategic investment has netted the government an impressive $53 million in profits, thanks to Bitcoin’s recent price surge.

With an average purchase price of $44,300 per BTC, El Salvador’s foresight in adopting Bitcoin as legal tender is paying off. The country’s success story is not just about financial gains but also about pioneering a new era in monetary policy, potentially inspiring other nations to explore the possibilities of cryptocurrency.

El Salvador’s commitment to Bitcoin is a testament to its belief in the digital currency’s potential to reshape economies and empower nations. As the world watches, this small country’s bold move could pave the way for a global shift towards cryptocurrency adoption.