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Shares of Bitcoin-linked companies stocks are declining

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bitcoin companies stocks and bonds

Bitcoin company stocks and cryptocurrencies are related. Risk appetite is steadily rising as markets enter a key reporting season when tech companies reveal their second-quarter results. In line with this growing risk appetite, Bitcoin rose above $24,000 last week. 

Bitcoin companies’ stocks are declining

After Tesla published its report, when it was revealed that Ilon Musk’s company had sold 75% of its Bitcoins, the first cryptocurrency began to decline. Shares of MicroStrategy, Coinbase and other tech companies also rose until the middle of last week. 

Since the beginning of the year, Bitcoin has lost more than 50% of its value. In that respect, its movement is in line with that of technology companies. And companies holding Bitcoin on their balance sheets are most exposed to the fluctuations of the first cryptocurrency. Are you interested in stocks and bonds of bitcoin companies? 

Tesla stock

Bitcoin company stocks and cryptocurrencies are related. Tesla (TSLA) reported quarterly earnings that outperformed earnings per share (EPS) and largely matched revenue. More accurately, this increase in EPS was helped by Tesla selling most of its assets in Bitcoin last quarter. Elon Musk has been an ardent supporter of the crypto space, and this news was enough to cause Bitcoin to start falling.

MicroStrategy’s Margin Call

MicroStrategy head Michael Saylor must have been thanking Ilon Musk for his Bitcoin sale! During the crypto winter that the cryptocurrency market plunged into, rumors of Microstrategy and a devastating margin call were rife on social media and even in the mainstream media. Microstrategy pursued a proactive strategy during the boom, using debt markets to fund its Bitcoin purchases. 

This meant that any potential margin call could easily be met with its large assets in Bitcoins without jeopardizing its financial viability. The $21,000 level was seen as a liquidation level for the company’s positions, and many predicted the end of MicroStrategy if that level was crossed. That price was broken down, and Microstrategy remains very much a going concern. The $21,000 level referred to one very specific loan from Silvergate Capital.

The microstrategy has almost 130,000 Bitcoins, according to the latest figures. The company has a lot of debt, but for the most part that debt is due from 2025 to 2027. Some of the debt is secured, and some can be converted, but the company has almost 130,000 Bitcoins available, which is a large margin of financial strength that can be sold if necessary. Bitcoin must collapse for MSTR to be in jeopardy. Microstrategy stock has lost more than 50% since the beginning of the year, echoing the dynamics of Bitcoin.

Coinbase stock

There is also a strong correlation between Coinbase (COIN) stock and Bitcoin. However, the cryptocurrency exchange Coinbase is not as dependent on its Bitcoin portfolio, but depends on market sentiment. The company’s business is under attack from GameStop, which is Coinbase’s competitor in the NFT market. NFT’s trading floor, Gamestop, was ahead of NFT’s Coinbase in July. GameStop is new to the industry, but is a well-known name among retail traders and a well-recognized brand.

Shares of Voyager Digital LTD

Canadian cryptocurrency exchange Voyager Digital LTD (VOYG) did not survive the market crisis and went bankrupt. The company’s shares have lost 98% since the beginning of the year. 

Marathon Digital Holdings Inc.

Another major Bitcoin holder, Marathon Digital Holdings Inc (MARA) has lost more than 60% of its capitalization since the beginning of the year.

Square Inc.

Square Inc. (SQSP) is losing less than its fellow Bitcoin holders. Its loss is 35% since the beginning of the year.

Hut 8 Mining Corp.

Major mining company Hut 8 Mining Corp (HUT) has a direct correlation to the value of cryptocurrencies being mined. Its stock price is down 75% since the beginning of the year.

Riot Blockchain, Inc.

Riot Blockchain, Inc. (RIOT) has lost 70% since the beginning of the year.

Bitcoin Group SE Shares

Bitcoin Group SE (BTGGF), which began trading on the exchange in the spring, has lost 60% since then.

Twitter Shares

Shares of Twitter (TWTR), which has been surrounded by fierce battles over Ilon Musk’s bid to buy it, have been quite volatile in the first half of this year. Despite this, Twitter’s capitalization has lost “only” 10% since the beginning of the year, which is a decent result compared to other companies.

Don’t expect Bitcoin company stocks are about to explode. Because no one can give accurate predictions.


Bitcoin onchain metric are stronger than ever

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bitcoin onchain metrics

Galaxy Digital analysts published a report that examined key bitcoins onchain metrics (BTC), compared the world’s main cryptocurrency to other asset classes and explained what events could be the catalyst for the coming price rally. The company is confident that the bulls have plenty of reasons to remain optimistic – even despite difficult macroeconomic conditions.

BTC has become the best performing asset of 2023

Bitcoin is the best performing asset in 2023 compared to a lot of stocks, fixed income securities, indices, and commodities. It shows the best or some of the best performance over various time horizons (except for 1 year), and it looks even stronger over the long haul.

In addition, bitcoin’s correlation with the Nasdaq and S&P 500 stock indices has begun to decline, while its correlation with gold, which is considered a classic haven asset, has risen sharply. This happened against the backdrop of the crisis that engulfed U.S. banks and led to the closure of Silicon Valley Bank, Silvergate and Signature.

Given the nature of the current crisis, in which the system of partial bank reserves is tested for strength, the fundamental characteristics of the BTC favorably distinguish it from traditional assets.

Accumulation, not driving price rally speculation

A number of key market indicators indicate that bitcoin’s price rally is driven by the accumulation of coins on the spot, not speculation in the derivatives market. The futures funding indicator has remained virtually unchanged since the beginning of 2023 – meaning that the market is net-neutral regarding speculative positioning. The same can be said about volume and open interest in the CME.

The total number of addresses with non-zero balances also continues to grow rapidly, with more than 45 million wallets holding BTC today. At the same time, most of them have never spent coins, but only received new ones.

The approaching halving will affect the level of inflation in the BTC network

The next bitcoin halving will occur in April 2024 and will cause the network’s inflation rate to fall below 1%. The halving events of 2012, 2016 and 2020 catalyzed a price rally and reached a new all-time high as investor demand for BTC quickly exceeded the declining supply level.

This event will put bitcoin among the most stable assets and make it less susceptible to inflation than gold and silver.

Early we reported that Whales are interested in Litecoin, again.

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Whales are interested in Litecoin, again: will it help LTC price return to the $100 mark

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Litecoin price forecast

In February, Litecoin, albeit briefly, returned to the $100 level for the first time since the collapse of the Terra ecosystem in May 2022. In early March, the price of the asset dipped below the $70 mark again. But that didn’t seem to hinder the whales’ plans, as large holders actively bought LTC during the correction.

Whale activity continues to rise

According to analyst firm IntoTheBlock, the average LTC transaction size increased more than 600% in March 2023, from $13,355 to $81,022.

The increase in average transaction size as the price pulls back signals an influx of large investors looking to buy back the decline in the asset. Given the financial strength of the whales, this could push LTC to another rally in the coming weeks.

Litecoin price forecast – could reach the $110 mark

Santiment’s Market to Realized Value Ratio (MVRV) shows that investors who bought Litecoin in the last 30 days made a 10% profit. According to historical MVRV readings, LTC holders have often captured profits of around 20%. This means that the $100 level is likely to be the next resistance zone.

If the price of the asset can combine above $100, the coin may continue its upward movement towards $115. However, bears can reverse the situation if the LTC falls below $80. With further declines, LTC could fall back below $70.

Early we reported that China intends to work with crypto-businesses through Hong Kong.

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China intends to work with crypto-businesses through Hong Kong

letizo News



Banking for crypto-businesses

Hong Kong subsidiaries of major Chinese banks began to provide services for local cryptocurrency firms involved in projects related to Bitcoin, altcoins and various startups. It was reported by Bloomberg, citing sources in the region.

It is alleged that the local branches of Bank of Communications, Bank of China and Shanghai Pudong Development Bank have begun, or are working to provide banking services to crypto-businesses. According to the publication, a representative of an unnamed Chinese bank even visited the office of a crypto firm to promote the services of the financial institution. A top manager of an unnamed large Chinese bank said in a media commentary that banks promote their services in Hong Kong due to the tacit approval of Beijing. The interest in the business is also due to the uncertainty around lending to the local market, they said.

Loyal attitude to the market of cryptocurrencies in Hong Kong has already “bounced back” to local investors with considerable losses. According to calculations by local law enforcement agencies, the region lost over $200 million in 2022 alone. 2,336 cases of crypto-fraud were registered in Hong Kong in 2022.

However, Chinese authorities’ interest is not limited to the crypto market. In early March, the South China Morning Post reported that China intends to stimulate the digitalization of the economy in Hong Kong with its own currency. The authorities are offering citizens a 20% discount for making payments in digital yuan. At the same time, the promotion is valid only for Hong Kong citizens and only in the southern technology center of Shenzhen (connecting China and Hong Kong).

Recall that in the fall of 2022, Hong Kong authorities announced plans to develop a cryptocurrency market in the region. According to the Hong Kong government’s website, the authorities will work with local regulators to create “favorable conditions” for developing the local cryptocurrency industry.

Early we reported that Cryptotraders lost more than $250,000,000 in liquidations after Fed rate hike.

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