- Bitcoin price retracted to $63K range after a strong weekend, buyer momentum has flatlined on daily time frame.
- MicroStrategy now owns more BTC than any public company and country worldwide.
- Blackrock saysl wall of money is coming to BTC through ETFs from pensions, endowments, and sovereign wealth funds.
Bitcoin (BTC) price is trading horizontally, kicking off the week with a lull after a strong weekend. Meanwhile, numbers shows that MicroStrategy’s buying spree has put it at the helm of the BTC ownership list.Â
Also Read: Bitcoin price tags $63K as Grayscale’s GBTC ETF experiences first inflow after nearly three deadlock months
Daily digest market movers: MicroStrategy ascends to helm of Bitcoin ownership list
Bitcoin price nicked the $64,000 threshold on Saturday, topping out at $64,540. In the early hours of the Asian session, traders experienced the same momentum witnessed during the weekend with Bitcoin price ascending to an intraday high of $65,500. The momentum was short-lived, however, as BTC retracted back to the $63,000 range amid waning momentum.
Meanwhile, reports indicate that MicroStrategy now owns more BTC than any public company or country in the world. At 207,189, the US comes second after the Michael Saylor-led firm MicroStrategy’s 214,400. China is third with 194,000 BTC despite the country’s recent reservations about crypto.
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MicroStrategy’s position at the helm of BTC ownership is unsurprising, given the founder’s enthusiasm for the digital asset. In a recent webinar, Saylor dismissed other crypto tokens, including XRP, ETH, BNB, SOL and ADA. In his opinion, there is no second to Bitcoin.
Elsewhere, CryptoQuant CEO Ki Young Ju says miners will need to charge at least $80,000 to cover mining costs following the halving. Some say this could help drive Bitcoin price to $80,000 rather quickly.
Bitcoin Mining Update: Miners will need to charge at least $80000 to cover mining costs post halving – reported by CryptoQuant CEO Ki Young Ju @ki_young_ju This indirectly means we are going to $80k fast.
According to data from @CryptoQuant CEO Ki Young Ju, the current cost… pic.twitter.com/pxj5LWcvoK
— MartyParty (@martypartymusic) May 6, 2024
Technical analysis: Bitcoin price risks a correction
Bitcoin price risks a correction after breaking above the resistance during the weekend. Facing immediate resistance due to the 50-day Simple Moving Average (SMA) at $65,930, BTC risks a correction, as markets tend not to wait for long.
The outlook on the Relative Strength Index (RSI), which is winding along the mean level of 50, suggests that neither the bulls nor the bears are leading the market. The Awesome Oscillator (AO) is also still in negative territory, putting the market at risk of a bearish takeover.
Investors looking to take new positions for BTC should wait for confirmation. To the upside, a move above $67,133 would encourage more buy orders, but the uptrend would only be solidified above the mean level of the supply zone at $72,207.
BTC/USDT 1-day chart
On the flipside, if bears recover the market, the Bitcoin price could cascade into the fold of the descending trendline. In a dire case, Bitcoin price could drop past the pool of liquidity (green). In an even more dire case, the dump could extend for BTC to provide another buy opportunity below $57,500.
Cryptocurrency metrics FAQs
The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. Since its inception, a total of 19,445,656 BTCs have been mined, which is the circulating supply of Bitcoin. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.
Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value. For Bitcoin, the market capitalization at the beginning of August 2023 is above $570 billion, which is the result of the more than 19 million BTC in circulation multiplied by the Bitcoin price around $29,600.
Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.
Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.
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