Author: dfmines

Cryptocurrency News and Public Mining Pools

MicroStrategy Strikes Again: $100 Million Bitcoin Purchase Signals Strong Market Confidence

MicroStrategy, the major enterprise software company that has evolved into a Bitcoin (BTC) investment platform, has captured attention once again with its latest purchase of $101 million in BTC. The company, led by chairman and co-founder Michael Saylor, has committed to utilizing perpetual preferred stock, common shares, and debt to fuel its ongoing Bitcoin purchasing strategy. MicroStrategy Eyes $42 Billion Capital Raise By 2027 In a filing with the US Securities and Exchange Commission (SEC), MicroStrategy disclosed that it purchased 1,070 Bitcoin tokens at an average price of approximately $94,000 on December 30 and 31, 2024.  This brings the company’s total Bitcoin holdings to an impressive 447,470 BTC, acquired for around $27.97 billion at an average price of $62,503 per Bitcoin.  Notably, Saylor highlighted in a social media post on X (formerly Twitter), that the company achieved a Bitcoin yield of 48% for the fourth quarter of 2024 and 74.3% for the entire fiscal year. Related Reading: XRP Eyes $11 Breakout, But A Correction Might Come First—Analyst MicroStrategy’s ambitious plans extend beyond Bitcoin acquisitions. On Friday, the firm announced its intention to raise up to $2 billion through offerings of perpetual preferred stock, which will hold seniority over its Class A common stock.  This move is part of a larger strategy to raise $42 billion in capital by 2027 through various means, including at-the-market stock sales and convertible debt offerings. With more than two-thirds of its equity goals already met, the company is expected to pivot towards fixed-income markets in the near future. The demand for MicroStrategy’s stock (MSTR) has notably increased among hedge funds, which are employing convertible arbitrage strategies that involve purchasing bonds and short-selling shares.  This strategy capitalizes on the volatility of MicroStrategy’s stock, a characteristic that has become a cornerstone of its business model. Benchmark analyst Mark Palmer remarked: That volatility itself is a key element of MicroStrategy’s approach because it enables the company to tap into the capital markets and particularly the convertible bond market more easily. MicroStrategy’s recent proposal to increase the number of authorized shares of Class A common stock from 330 million to 10.3 billion has sparked fears of share dilution, leading to a significant drop in the company’s stock price.  MicroStrategy’s Bold Bitcoin Strategy Faces Headwinds  On the day of the proxy filing in December, shares fell by as much as 9.6%. Adam Kobeissi, founder of The Kobeissi Letter, noted the dilemma faced by investors, stating:  It’s a lose-lose because on one hand you have people saying that it’s dilutive and they’re selling the stock… but on the other hand you have people saying if it doesn’t pass, then they can’t keep buying Bitcoin and the whole investment strategy is kind of broken. A vote on the share increase is scheduled for January 21, 2025, and with Saylor being a significant shareholder, the amendment is expected to pass. Should it be approved, the increase in shares could lead to further volatility in MicroStrategy’s stock price as the company becomes more leveraged.  Although the company has typically outperformed Bitcoin, it has faced challenges in recent months, underlining that its performance is influenced by factors beyond just cryptocurrency prices. Related Reading: Ethereum Price on the Rise: Can Momentum Fuel Bigger Gains? Despite the recent fluctuations, Palmer maintains a “buy” rating on MicroStrategy’s stock. He believes the market’s reaction to the proposed share increase has been an overreaction.  “The company’s strategy has been to issue shares to make accretive Bitcoin purchases which can accrue to the benefit of shareholders,” he commented. MicroStrategy’s aggressive approach to Bitcoin acquisitions has seen it make significant purchases exceeding $1 billion in late 2024, although recent weeks have seen a slowdown in these activities amidst fluctuating Bitcoin prices.  Palmer reassured investors, stating, “We’ve seen a pull forward of the company’s strategy, which is not indicative of a slowdown… it’s more a reflection of the aggressive approach that the company has taken.” At the time of writing, the market’s leading crypto is inching closer to the $100,000 milestone, trading at $99,340, up 2% in the last 24 hours. Featured image from DALL-E, chart from TradingView.com 

Crypto Industry Waves Goodbye to Top Fed Regulator as Resignations Pile Up – Decrypt

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Bitcoin Price Breaks $100K: Bulls Set Their Sights Higher

Bitcoin price is recovering losses above the $100,000 zone. BTC is showing positive signs and might continue higher if it clears the $102,500 resistance zone. Bitcoin started a decent increase above the $98,800 zone. The price is trading above $100,000 and the 100 hourly Simple moving average. There is a short-term bullish trend line forming with support at $99,800 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair could start another increase if it stays above the $98,500 support zone. Bitcoin Price Reclaims $100K Bitcoin price started a decent upward move above the $96,500 resistance zone. BTC was able to climb above the $97,200 and $98,800 resistance levels. The price was able to clear many hurdles near the $100,000 level. It even spiked above $102,000. A high was formed at $102,479 and the price is now consolidating gains above the 23.6% Fib retracement level of the recent upward move from the $97,251 swing low to the $102,479 high. There is also a short-term bullish trend line forming with support at $99,800 on the hourly chart of the BTC/USD pair. The trend line is close to the 50% Fib retracement level of the recent upward move from the $97,251 swing low to the $102,479 high. Bitcoin price is now trading above $100,500 and the 100 hourly Simple moving average. On the upside, immediate resistance is near the $102,500 level. The first key resistance is near the $103,200 level. A clear move above the $103,200 resistance might send the price higher. The next key resistance could be $104,500. A close above the $105,000 resistance might send the price further higher. In the stated case, the price could rise and test the $106,500 resistance level. Any more gains might send the price toward the $108,000 level. Another Drop In BTC? If Bitcoin fails to rise above the $102,500 resistance zone, it could start a fresh decline. Immediate support on the downside is near the $101,250 level. The first major support is near the $100,000 level. The next support is now near the $98,550 zone. Any more losses might send the price toward the $96,500 support in the near term. Technical indicators: Hourly MACD – The MACD is now gaining pace in the bullish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level. Major Support Levels – $101,250, followed by $100,000. Major Resistance Levels – $102,500 and $103,200.

Crypto Fees Ride Low: Onchain Bitcoin and Ethereum Costs Dip Below $2

Over the past 30 days, Bitcoin and Ethereum network fees have remained relatively modest, even as prices have experienced an upward trend. During the first week of 2025, the average transaction fee on the Bitcoin network was $1.40. In comparison, Ethereum onchain fees were slightly lower during the first six days of January, reflecting a […]

Canada PM frontrunner once vowed to make the country a ‘crypto capital’

Canadian Prime Minister Justin Trudeau’s exit has put attention on opposition leader Pierre Poilievre, who has a history of pro-crypto comments.

Dogecoin Jumps 20%, But Social Media Still Bearish: Green Signal For Rally?

Dogecoin has made some notable recovery during the past week, but social media users have remained bearish. Here’s why this could be good for the rally. Dogecoin Weighted Sentiment Has Remained Negative Recently As pointed out by analyst Ali Martinez in a new post on X, the Dogecoin Weighted Sentiment still has a red value. The “Weighted Sentiment” here refers to an indicator from the analytics firm Santiment that tells us about the dominant sentiment related to a given asset that’s present on the major social media platforms. This metric is based on two other indicators: Sentiment Balance and Social Volume. The first of these, the Sentiment Balance, calculates the net sentiment present on social media. Related Reading: Dogecoin Bullish Signal: Whales Make $1.08 Billion Net DOGE Purchase It works by putting the various posts/messages/threads through a machine-learning model to differentiate between positive and negative posts. Then, it takes the two counts and subtracts them to determine the net market situation. While the Sentiment Balance does provide a rough overview of social media, it may not always be the best representation of the majority of the users, as all it can do is take into account the data of the posts currently present. That is, it only says about the sentiment of the active users, regardless of whether they are actually a minority by count. To mitigate this problem and achieve more accuracy, the Weighted Sentiment incorporates the second element: the Social Volume. This indicator measures the total unique number of posts on social media that mention the cryptocurrency. Thus, by weighting the Sentiment Balance by this metric, the Weighted Sentiment ensures that its value only registers a spike (in either direction) when there is both a significant tendency towards one sentiment and a large number of users voicing said sentiment. Now, here is the chart for the Weighted Sentiment for Dogecoin shared by the analyst that shows the trend in its value over the past few months: As displayed in the above graph, the Dogecoin Weighted Sentiment turned negative in December as the meme coin’s bull rally hit an obstacle, and its price reversed to the downside. The negative sentiment hasn’t changed in 2025 so far, but interestingly, the trend in the price has. Over the past week, the asset has seen a recovery rally of more than 20%. The continued bearish sentiment would imply this run hasn’t been enough to change the opinion of social media users yet. Historically, digital assets have tended to move in a way that’s opposite to the expectations of the majority. From the chart, it’s apparent that Dogecoin’s tops in November were accompanied by sharp positive spikes in the Weighted Sentiment. Related Reading: Bitcoin Coinbase Premium Sinks To Lowest Since FTX Crash: Bottom In? Therefore, considering that the traders are pessimistic towards DOGE right now, chances may be that this latest rally could have further room to run before encountering a wall. DOGE Price Following its recovery during the last few days, Dogecoin has seen its value climb to the $387 mark. Featured image from Dall-E, Santiment.net, chart from TradingView.com

XRP Eyes $500B Market Cap as Peter Brandt Signals Potential Breakout

Peter Brandt says XRP’s market cap could hit $500 billion if its bullish flag pattern holds, but warns the setup may fail if momentum stalls soon. XRP’s Next Move Could Drive It to $500 Billion, Peter Brandt’s Chart Hints Peter Brandt, a veteran trader with over four decades of experience in commodities and financial markets, […]

Federal Reserve bank regulator Michael Barr to step down

Fed’s Barr once said the Federal Reserve would “likely view it as unsafe and unsound for banks to directly own crypto-assets on their balance sheets.”

FDIC Releases Redacted Operation Choke Point 2.0 Letters

The letters serve as a damning indictment of the government’s alleged anti-crypto policies. How the FDIC Secretly Stifled Banks’ Crypto-Related Activities The Federal Deposit Insurance Corporation (FDIC), an entity originally formed to restore trust in the American banking system, on Friday, quietly released letters it had previously sent to banks prohibiting them from engaging in […]