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Yesterday, there was a lot of curious news about the crypto market, including that about new investments. Yet, bitcoin failed to break above the resistance zone.
Crypto bulls still dominate the market as big investors continue to spend a huge amount of money buying digital assets. MicroStrategy announced that it had purchased about 253 more of the leading cryptocurrency for $15 million in cash. On average, the cost of the coin amounted to 59,300. Now the company has 253 bitcoins, the average price of which is estimated at $24,300. As a result, MicroStrategy holds about 235 bitcoins at a total purchase price of $24.3 billion.
The company's CEO, Michael Saylor, said that as of April 5, the company has $5.2 billion in bitcoin. Notably, the company has invested $2.2 billion in virtual assets. Saylor is betting on bitcoin. He believes that it may soar to $5 billion with the level of the market capitalization of $100 trillion. Taking into account such a forecast, it is no surprise that the company has bought so many coins.
Importantly, MicroStrategy used borrowed funds to buy the cryptocurrency. The debt consists of $1 billion of convertible senior notes due 2027. Now the company holds the biggest amount of bitcoins. Elon Musk is lagging behind. Tesla has bought $1.5 billion worth of bitcoins.
Meanwhile, Grayscale has announced that it intends to convert the bitcoin trust into an ETF fund. On April 5, the company filed documents with the SEC where it indicated that it is committed to converting GBTC in ETF. "We are 100% committed to converting GBTC into an ETF. The timing will be driven by the regulatory environment," the company pointed out.
The Securities and Exchange Commission has approved Coinbase's request to hold a direct listing. In Coinbase's direct listing, its shares will be listed on the NASDAQ under the ticker "COIN". Their price is projected to be in the range of $300-350 apiece. The placement is scheduled for April 14.
Goingecko also reports that the cryptocurrency market has reached a capitalization of $ 2 trillion. However, the data on Coinmarketcap shows a different picture. At the time of writing this article, on Coinmarketcap, the capitalization was at the level of $1.948 trillion.
At the same time, the real bitcoin dominance index hit 56%, and together with ether, their total share comes in at 67.5% in the crypto market.
Notably, the first trillion capitalization of the cryptocurrency market was notched on January 7 with the price of $34,000 per coin. It took about two months to reach the second trillion.
How do large investors assess the current market situation? Many agree that the current consolidation of bitcoin led to the rally of ether the historical high of $2,150 per coin.
The short-term outlook is optimistic. Jonathan Habicht, a partner at Moonrock Capital, thinks that there are many traders who are ready to buy the cryptocurrency later when it falls in price. But the market is not likely to become bearish.
Perhaps yesterday's news enabled bitcoin to add gains. Nevertheless, it still unable to break through the resistance level of 58340.66 - 59517.79. Therefore, the lows of the weekend and the level of 100 on Fibo Expansion remain as a possible target for correction.
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