Look for New Opportunities as Bitcoin Takes a Breather
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| By Marija Matic |
In a remarkable display of sustained growth, Bitcoin (BTC, “A”) has just closed its seventh consecutive month in positive territory, with March adding another 16.81% to BTC’s value.
This extends a bullish streak that began in September 2023, marking a historic feat for the leading cryptocurrency.
And some previous months were even more impressive, with October registering a gain of 28.52% and February exceeding expectations with a staggering 43.55% increase.
Bitcoin's price action can be attributed to a rise in demand, as evidenced by CryptoQuant data indicating a jump in monthly Bitcoin demand from 40,000 to 213,000 BTC in 2024. This was primarily fueled by ETF purchases and whale activity.
The collective holdings of ETF funds now stand at 831,500 BTC, constituting an impressive 4.23% of Bitcoin's supply. At the same time, the supply of Bitcoin on exchanges tightened to 2.7 million, which means there is less and less Bitcoin available for purchase.
This indicates an impending liquidity squeeze in the market, which could send prices higher.
But before we can get excited about that, the persistent overheated funding rates suggest volatility on the horizon.
A Breather Before the Next Move?
After the significant gains of the past few months, Bitcoin appears to be taking a breather.
The price has been hovering around $70,000 for a week, trapped in a relatively tight range between $68,400 and $71,700:
This consolidation phase is a sign that investors are waiting for a decisive breakout before committing further capital.
A surge above $71,700 could be just what they’re waiting for. But on the other hand, a break below $68,400 would mean a short-term correction.
Ethereum (ETH, “B+”) has also been going sideways for the past seven days. It is currently testing support at the lower end of its trading range at $3,450:
Its next trend will be determined by breaking either support or resistance, depicted by orange lines.
Market leaders may be idling, but that doesn’t mean the market is quiet. Select altcoins in leading sectors are taking the opportunity to flex.
In fact, I want to turn the spotlight on one that’s really shining: dogwifhat (WIF, Not Yet Rated)!
It’s a memecoin, a sector that has been booming this bull season and one my colleague Dr. Bruce Ng has spoken about in much more detail. Not only that, but WIF is also built on the Solana (SOL, “B+”) network, a leading player in the Layer-1 sector.
This means it’s benefiting from SOL’s success, as well as its own.
WIF’s price surged to $4.88 yesterday, marking a staggering 2,766% increase year to date. That’s only three months!
WIF has dethroned Pepe (PEPE, Not Yet Rated) to claim the title of the third largest memecoin by market cap, trailing only memecoin royalty, Dogecoin (DOGE, “B-”) and Shiba Inu (SHIB, “C+”).
This meteoric rise has solidified its position as a leader in this meme season and highlighted the growing strength of the Solana community and network, where WIF resides.
Even beyond just the memecoin sector, WIF has seen marked success. It has now secured a coveted spot within the top 33 coins in the market. Its impressive valuation of over $4 billion puts it on par with crypto giants like Cosmos (ATOM, “C+”) and Arbitrum (ARB, “B”).
WIF is an example of what my colleague Juan Villaverde is calling “new crypto wonders.” These are small cap crypto projects that have insane growth potential — the kind that generates the type of returns the Wild West of crypto is known for.
But WIF has already started its ascent. Tomorrow at 2 p.m. Eastern, Juan is sitting down with Weiss Ratings founder Dr. Martin Weiss to explain how you can target these crypto wonders before they take off to maximize potential returns.
I don’t know when the next rally will kick off. But I do know that the crypto markets move fast. So you’ll want to understand this strategy as soon as possible.
That’s why I urge you to save your seat now. Then, join Juan and Martin tomorrow at 2 p.m. Eastern.
Notable News, Notes & Xeets
- FTX bankruptcy estate is aiming to begin repaying creditors by the end of 2024. Claims will be valued as of Nov. 11, 2022, the original date of the bankruptcy claim.
- Sam Bankman-Fried has to repay $11 billion as part of his sentence. It means that he’ll never be able to become too comfortable financially, as the government could pursue him for money and assets for eternity.
- My colleague Jurica Dujmovic wrote about the revolutionary web3 social media platform Farcaster last week. Looks like he was just a little ahead of the big news. Now, one of Farcaster’s parent companies just hit a $1 billion valuation.
This follows a massive user surge, jumping from 5,000 daily users in late January to over 249,000 by March thanks to their new "Frames" feature.
What’s Next
Bitcoin may be stuck in a steady range right now. But anticipation is building as its halving is just 18 days away.
This is an atmosphere ripe for excitement. And as we step into the new week, the potential for substantial market movements becomes palpable.
Whether the market experiences a breakout or a breakdown from its current range, a notable shift is anticipated.
Altcoins are also likely to feel the impact of the impending halving-induced volatility.
And the excitement doesn’t stop with Bitcoin’s halving. There is a whole series of significant events slated for April, including …
- The sentencing of former Binance CEO and founder Changpeng Zhao, who prefers to go by CZ. As the largest centralized exchange, any impact — perceived or otherwise — to Binance could send tremors through the broad market.
- The release of the March inflation data.
- Continued developments in the lawsuit between Coinbase and the Securities and Exchange Commission.
- The Bitcoin Cash (BCH, “C”) — a spin-off of Bitcoin created after a 2017 fork from the main BTC blockchain — halving.
- New product launches, including EigenLayer’s mainnet and tokens such as Ethena, Wormhole, IONET and others.
And more!
The crypto landscape is primed for a period of heightened activity and potential opportunities due to these developments, making it a captivating time for traders and investors alike.
That’s why I’ll remind you one more time to save your seat for tomorrow’s conference. This may be the last chance to target these new crypto wonders before they take off, and I don’t want you to miss out.
Best,
Marija Matić
