Bitcoin Surges 11% in Strong Week, Altcoins Rally Even Higher
Keywords: Bitcoin, altcoins, surge, VeChain, VET, blockchain, supply-chain management, business processes, Account Abstraction, interoperability, programmable smart contract wallets, Chainlink, on-chain oracle market, X2Earn projects, bullish sentiment, Sei Network, ether, MicroStrategy, corporate owner, profit, Coinbase, cryptocurrency exchange, earnings, revenue
Bitcoin (BTC) had an impressive week, gaining 11% in the past seven days. However, it was altcoins that stole the show, with some experiencing a surge of over 50%. The standout performer was VeChain's VET token, which skyrocketed by 65%. VeChain is a blockchain technology that aims to revolutionize supply-chain management and streamline business processes for enterprises. While Bitcoin's rise played a role in VET's surge, the exact catalyst remains unclear. Nevertheless, VeChain did announce the successful launch of "Account Abstraction" earlier in the week, enhancing interoperability and unlocking programmable smart contract wallets. Industry experts, such as Kenny Hearn, Chief Investment Officer at SwissOne Capital, believe that VeChain's strong presence in the on-chain oracle market, second only to Chainlink (LINK), has also contributed to the token's remarkable performance. Hearn stated that VeChain's recent collaborations with multiple X2Earn projects likely contributed to the bullish sentiment propelling the token's ascent.
Another notable gainer in the altcoin market was Sei Network (SEI), which rose nearly 50%. Ether, the second-largest cryptocurrency by market value, also experienced a notable 15% increase.
Meanwhile, Bitcoin's price surged close to $53,000, leading to significant gains for MicroStrategy (MSTR), the largest corporate holder of the cryptocurrency. MicroStrategy's Bitcoin holdings now exceed $10 billion, resulting in a profit of over $4 billion. According to the company's recent investor presentation, MicroStrategy purchased 190,000 bitcoins for a total of $5.93 billion, effectively acquiring the tokens at an average price of $31,224 per coin. The company's strategic move to invest in Bitcoin began in the second quarter of 2020, and it has continued to accumulate additional tokens each quarter. This steady investment has paid off, as the company's profit, which stood at nearly $2 billion in December last year, has now doubled thanks to Bitcoin's impressive rally of over 20% since the start of 2024.
In the world of crypto exchanges, Coinbase (COIN) witnessed a surge in its share price following robust fourth-quarter earnings and revenue that outperformed analysts' expectations. The company reported earnings of $1.04 per share, surpassing the average analyst estimate of $0.02 per share, while its revenue of $953.8 million exceeded the forecasted figure of $826.1 million. As a result, COIN shares jumped approximately 13% in post-market trading on Thursday, adding another 3% during the regular trading session. Despite a 4% decline since the beginning of the year, COIN shares have been buoyed by the significant price increase of Bitcoin, which surged by 23%.
Finally, a chart depicting bid and ask orders in dollar terms within a 2% range of the mid-price across various cryptocurrency exchanges showed an interesting trend. The ratio of asks to bids rose to its highest level in over a year earlier this week. When the ask price exceeds the bid price, it usually signifies that prices are more likely to move higher than lower. The ask price is the amount sellers are willing to accept, while the bid price represents the price buyers are prepared to pay.
Overall, Bitcoin's performance, along with the strong rallies of altcoins like VeChain and Sei Network, have fueled optimism in the cryptocurrency market. Additionally, MicroStrategy's remarkable profits from its Bitcoin holdings and Coinbase's stellar financial results have further solidified the industry's upward trajectory.
Analyst comment
Positive news:
– Bitcoin (BTC) had a strong week, adding 11% in the past seven days.
– Altcoins surged even more, with some rallying in excess of 50%.
– VeChain’s VET climbed 65%, following bitcoin’s pump and announcing improvements in interoperability and smart contract wallets.
– MicroStrategy (MSTR) has seen its bitcoin holdings climb above $10 billion, amassing a profit of more than $4 billion.
– Coinbase (COIN) beat analysts’ estimates for Q4 earnings and revenue, with shares surging.
Neutral news:
– The catalyst for VET’s surge is unclear.
As an analyst, the market is likely to experience continued growth as both Bitcoin and altcoins have performed well. The increased holdings and profits of MicroStrategy indicate confidence in the market, and Coinbase’s positive performance reflects the overall strength of the crypto industry. However, the uncertainty surrounding the catalyst for VET’s surge may warrant caution in predicting its future trajectory.
