Date: 03/06/2021
“I think in the near term, people see it surpassing gold as a store of value, so I think $1 million as a price target within the next ten years is pretty reasonable.” - Jesse Powell
Weekly Headline News
1. Grayscale Accelerates Ethereum Accumulation
FINANCE MAGNATES
2. As Bitcoin Suddenly Surges Over $50,000, The Price Of These Cryptocurrency Stocks Is Soaring
Forbes
3. Grayscale Discount Might Signal Start of Fresh Bitcoin Rally, Bloomberg’s McGlone Says
Coindesk
4. How to Buy Bitcoin at an 80% Premium From Michael Saylor
Coindesk
5. NFTs, DAOs and the New Creator Economy
Coindesk
6. Record GBTC discount may spark $100K Bitcoin price rise — analyst
Cointelegraph
7. Bitcoin bull run is still in the early stages, key on-chain indicator shows
Cointelegraph
8. Twitter CEO Jack Dorsey Is Taking Bids for the First-Ever Tweet
Coindesk
Summary
Grayscale Accelerates Ethereum Accumulation
● The world’s largest crypto assets manager purchased 3,347 Ethereum in the last 24 hours. The digital assets manager now has 3.17 million ETH under management with a total worth of nearly $4.86 billion.
● Despite the reason that Bitcoin and Ethereum account for more than 90% of Grayscale’s total digital assets under management, the company is now planning to add other cryptocurrency assets as well. Ethereum registered an all-time high of $2,020 in February this year. The world’s second-largest crypto asset is now hovering around $1,560 with a total market cap of more than $180 billion.
As Bitcoin Suddenly Surges Over $50,000, The Price Of These Cryptocurrency Stocks Is Soaring
● Bitcoin’s latest bull run has seen its price climb by almost 500% over the last year, charging back above $50,000 per bitcoin after a sell-off last week. As soaring bitcoin and cryptocurrency prices tempt users to the burgeoning market, share prices of many crypto businesses have risen too, with some far outpacing recent cryptocurrency rallies.
● Some bitcoin and cryptocurrency miner stocks have also soared in recent months. Over the last three months, the bitcoin price has climbed 150%, while some other major cryptocurrencies have recorded even bigger gains.
Grayscale Discount Might Signal Start of Fresh Bitcoin Rally, Bloomberg’s McGlone Says
● McGlone wrote in a March outlook report that a recent drop below zero in the so-called Grayscale premium — a closely watched metric in cryptocurrency markets — could signal a market reset for a fresh bitcoin rally.
● The Grayscale premium refers to the difference between the price of bitcoin as implied by the cost of shares in the publicly traded Grayscale Bitcoin Trust (GBTC), and the price of bitcoin as traded on cryptocurrency exchanges. Historically, it’s been positive.
How to Buy Bitcoin at an 80% Premium From Michael Saylor
● MicroStrategy’s series of bitcoin purchases have been a triumph. As Saylor noted in a recent tweet, the company has thus far spent $2.186 billion to buy a total of 90,859 BTC. That puts its average cost at $24,063.
● While MicroStrategy bought bitcoin at $24,063, which now looks like a bargain, it’s a different story for anyone buying MSTR stock now. Paying a $3.6 billion premium for MicroStrategy’s leveraged bitcoin hoard of $4.4 billion works out to roughly $88,000 per bitcoin, more than triple the $24,063 the company paid to acquire it over the past few months. Remember, buying MicroStrategy shares now isn’t the same as buying shares back in August. Will that premium still be there should a Gary Gensler-led Securities and Exchange Commission decide to approve a bitcoin ETF? Who knows?
NFTs, DAOs and the New Creator Economy
● Decentralized autonomous organizations, non-fungible tokens: Building blocks for a new media owned by talent. The creator economy served as a catalyst to disrupt legacy structures by introducing platforms and products that enable individuals to build a business around themselves.
● The ownership economy — by way of decentralized autonomous organizations (aka DAO) and non-fungible tokens (aka NFT) — builds a business on top of the creator economy that encourages creators, operators and the community to collaborate together under a new, interdependent ownership mechanism that combines the best of both (legacy and creator economy) worlds and then some.
● This new media structure will be wholly owned by the creators, operators and consumers themselves. It will be a product of both the public and its producers and will not limit participants to a single company.
Record GBTC discount may spark $100K Bitcoin price rise — analyst
● History repeating itself have the potential to spark a 2–4X BTC price run, data covering the GBTC premium suggests. Bitcoin could be in for a $100,000 bull run next if a classic signal from institutions repeats its historical trend.
● A negative premium was also observed in March 2020, the start of the bull cycle which has brought BTC/USD from $3,600 to $58,300. “Grayscale #Bitcoin Trust Discount May Signal March to $100,000,” McGlone wrote, “Bitcoin’s end of February price disparities on U.S. regulated exchanges portend a firming price foundation, if history is a guide, and are evidence of just how nascent the crypto is.”
Bitcoin bull run is still in the early stages, key on-chain indicator shows
● According to William Clemente, a cryptocurrency analyst, Glassnode’s Reserve Risk indicator shows that Bitcoin’s rally is still in the early to middle stage. As Clemente explains, the Reserve Risk is defined as price/HODL Bank. The indicator is “used to assess the confidence of long-term holders relative to the price of the native coin at any given point in time.”
● Lex Moskovski, the CEO of Moskovski Capital, also noted that strong holders are ramping up their Bitcoin positions. As long as strong hands and high-net-worth investors are continuing to accumulate Bitcoin, the bull trend is likely to remain intact. In addition, the high time frame market structure of Bitcoin remains compelling, as it broke above the $46,000 level, establishing it as new technical support.
Twitter CEO Jack Dorsey Is Taking Bids for the First-Ever Tweet
● Twitter co-founder and CEO Jack Dorsey has listed for sale on the NFT platform Valuables the first tweet ever made. As of press time, bidding was at $88,888.
● Dorsey is a well-known fan of bitcoin, making multiple forays into the space. This is Dorsey’s first-time showing interest in Ethereum. Dorsey’s offering of one of his earliest tweets for sale on an Ethereum-based platform should only add fuel to that fire.
