Connect with us

Bitcoin

$600 MILLION: MICROSTRATEGY ANNOUNCES PLAN TO RAISE MONEY TO BUY MORE BITCOIN

Published

on

  • Bitcoin has seen some mixed price action over the past couple of days, first seeing a massive selloff before testing new highs of over $50,000
  • The cryptocurrency has since erased these highs and plunged lower, with bulls failing to take firm control of its price action
  • This has taken a toll on altcoins, with many seeing notable losses as the benchmark crypto continues regaining some recently lost market dominance
  • Although its price action may look shaky in the short-term, one white swan that could help boost the cryptocurrency is another massive purchase from MicroStrategy
  • The company announced today their plans to have a private offering convertible senior notes with the intention of raising $600 million
  • All of this money would be put towards acquiring additional Bitcoin

It has been a relatively rough past few days for Bitcoin, with the cryptocurrency’s price action growing increasingly heavy as it struggles to break out of the $50,000 resistance that it has been stuck beneath.

The benchmark digital asset has seen some intense selloffs, but each one has been erased throughout the past few days.

Despite this weak price action, a massive influx of new capital may be imminent, thanks to MicroStrategy. The company announced plans to raise roughly $600 million – all of which would be used to add to their BTC reserves.

BITCOIN STRUGGLES TO GAIN MOMENTUM FOLLOWING $50,000 REJECTION 

At the time of writing, Bitcoin is trading up just under 2% at its current price of $48,800, which marks a notable decline from its daily highs of nearly $51,000.

Advertisement

The selling pressure above $50,000 is significant and has caused the entire market to face some immense inflows of selling pressure as of late.

Until it can flip this level into support, the cryptocurrency could see some immense selling pressure that drives it lower.

THIS COMPANY IS ABOUT TO BUY ANOTHER $600M WORTH OF BTC

MicroStrategy pioneered the trend of publicly listed companies adding BTC to their balance sheets, and they’re keen on adding even more.

Advertisement

The company announced in a press release today that they are raising another $600m via a convertible senior note offering to use the proceed to buy additional Bitcoin.

“MicroStrategy intends to use the net proceeds from the sale of the notes to acquire additional bitcoins.”

This could provide Bitcoin with a boost in the mid-term and may even help it break through its $50,000 resistance level.

News Source

Advertisement

Bitcoin

Bitcoin Drops as China Declares Crypto-Businesses Illegal

Published

on

  • China declared that cryptocurrency-related businesses are illegal
  • Bitcoin, Ether, and stablecoin Tether do not qualify as legal tender in China
  • BTC drops in price as the announcement went out

Once again, China reiterated its antagonistic stance on Bitcoin and the cryptocurrency industry as a whole.

In an announcement, the People’s Bank of China (PBOC) mentioned that BTC, ETH, and USDT are not legal tenders in China. They added that these cannot be used in the currency market.

Additionally, the central bank deemed all crypto-related businesses as illegal. This includes overseas exchanges serving residents within China and derivative transactions.

Following the news, Bitcoin’s price fell by almost $2,000 as the news circulated. This has been a common pattern whenever China FUD comes out.

Advertisement

Earlier, China also reiterated its stance on crypto trading and mining while testing the Digital Yuan. According to the PBOC, it will continue releasing regulatory pressure over the crypto trading industry.

Despite the negative news, many analysts remain bullish on Bitcoin and the cryptocurrency industry as a whole. According to analyst Lark Davis, this is not new and will happen again in the future.

In a tweet, Davis mentioned that “The year is 2025, #bitcoin has just corrected from 400k to 250k on China banning BTC fears.”

Advertisement
Continue Reading

Bitcoin

Can Bitcoin Surpass $6,000,000? Ethereum and Polkadot Creator Details Possible Future of Crypto

Published

on

Early Bitcoin developer and co-founder of Ethereum and Polkadot, Gavin Andresen, is outlining a future where BTC rises to a staggering $6,000,000 per coin.

Gavin Andresen, who took over as Bitcoin’s lead maintainer from founder Satoshi Nakamoto in 2011, just published a new blog post detailing how BTC’s theoretical evolution could look.

Andresen describes a “possible” scenario where Bitcoin hits a price tag of $6,000,000 by 2061, transaction fees 326x higher than they are now, and the blockchain is used chiefly by whales.

Advertisement

“Imagine: it is the year 2061. The BTC price is six million US dollars – equal to about a million 2021 dollars because of inflation.

Miners are being rewarded 0.006103515625 BTC per block, plus transaction fees of about 5 BTC for 4,000 or so transactions ($7,500 per transaction).

But most BTC transactions don’t happen on the BTC network. Most BTC is locked up in multi-signature outputs secured using multiparty computation and mirrored on another chain as ‘wrapped’ tokens.”

Advertisement

In his scifi scenario, Andresen says those who do remain on Bitcoin’s network will be incentivized to keep it alive.

“The transactions that do occur on the main BTC network are high-value, mostly between super-whale-size holders…

These whales maintain the BTC network forever. They are the miners and the transaction creators; they don’t care how high transaction fees go, because they receive as many fees as they pay.”

Advertisement

However, Andresen says that by 2100, even those users would likely leave the blockchain.

“In the year 2100 the whales notice that the mining reward is basically zero… Eventually, there are zero new BTC being produced on the BTC network, and zero BTC circulating on the BTC network. There is nothing left to secure, and the chain stops.”

News Source

Advertisement
Continue Reading

Bitcoin

Top Analyst Maps Bitcoin and Cardano Price Trajectories, Warns Best Entry Point for ADA May Be Gone

Published

on

Top Analyst Maps Bitcoin and Cardano Price Trajectories, Warns Best Entry Point for ADA May Be Gone

Crypto trader Michaël van de Poppe is looking at what’s ahead for Bitcoin (BTC) and the smart contract platform Cardano (ADA).

The analyst tells his 420,000 Twitter followers that the best entry point for Cardano may be gone after the asset bounced off a key support level at $1.86.

Advertisement

“If you want to get into Cardano, this was the region where you would want to get into it, and the higher low that might be created.

So based on the daily timeframe, the best entry might be gone, but you’re still getting a better entry than the ones who have been buying around $2.80.”

Van de Poppe is now looking to see if ADA can turn resistance at the $2.37 level into support.

Advertisement

If the markets correct further, he is keeping an eye on the $2.15 level as a potential buy zone.

“When you’re looking at the four-hour time frame, I think you’re getting the exact same view as what you have right now on Bitcoin and [Ethereum], actually. So you’re going to look for an entry point which is around the fact of $2.15, so anything in this region might be a good entry point if we get a corrective move.”

Looking at the Bitcoin pair, van de Poppe thinks that ADA will most likely consolidate briefly after retesting support at its previous all-time high.

Advertisement

“We can see that we’ve had a beautiful retest of the previous high here too, and therefore some consolidation is most likely going to take place before we’re going to have new impulse waves.

So both the USDT and BTC pair are looking for continuation, and I think that’s just great, and I think that’s just what we want to see with the markets right now.”

News Source

Advertisement
Continue Reading

Trending