BitcoinBites: 5 BTC stories you should know – February 2nd, 2022
MicroStrategy buys 660 more BTC for $25 million
In a world where many businesses are cutting back on spending, it’s refreshing to see one enter the market with an acquisition. The NASDAQ-listed business intelligence giant MicroStrategy, to stay trustworthy and loyal with their word of acquisition for bitcoins no matter what – even during this recent bitcoin selloff, has announced another purchase worth $25 million.
Michael Saylor, the CEO, has announced today that they’ve bought another 660 bitcoins at an average price of $37,865 per coin.
Bitcoin charts similar market structure as of June 2021’s bottom
While bitcoin is recovering from its massive 50% crash since reaching the ATH in November 2021, the onchain and technical indicator are not showing strong momentum and signs of a bull run renewal.
The market structure is similar to 2021’s Jun – July bottom, and without a catalyst, a likely case for bitcoin is to be traded sideways in the mid-term.
On the daily timeframe, by examining historical data of the previous two market corrections, the trend was reversed after the 14-Day RSI (marked by yellow vertical lines) broke above the SMA- 200 line.
Also, the beginning of the downtrend has been associated with breaking below this long-term moving average line, marked by red vertical lines. Therefore, if history repeats itself, a possible crossing in the mid-term can provide a better opportunity for traders to rejoin the market.
Bitcoin market dominance hit highest since November 2021, no alt season in sight
fter reaching its biggest market capitalization dominance since November 2021 last week, Bitcoin is regaining market share from altcoins.
The pioneer momentarily accounted for almost 42% of the global crypto market cap in late January, according to CoinMarketCap data.
Since its inception, Bitcoin has been the most popular cryptocurrency. Its domination was unequaled for a long time, as the digital coin’s performance influenced the market’s outcome, bringing altcoins along for the ride in either win or loss scenarios.
Bitcoin mining carbon emissions at ‘inconsequential’ levels
It's hard to make the case that Bitcoin mining is, by itself, good for the environment. But newly compiled research from digital asset investment firm CoinShares suggests its impact on carbon emissions is minimal, especially when compared to the global financial system.
CoinShares, which has in recent months sought to reframe the Bitcoin energy debate, estimates that the Bitcoin mining network was responsible for 41 megatons (Mt) of CO2 emissions in 2021—up from 36 Mt the year before. While that sounds like a lot, it's less than 0.08% of global carbon emissions—a number CoinShares calls "inconsequential." Using a 2019 estimate from Galaxy Digital, it pegs emissions for the entire financial system at 130 Mt. The U.S. was responsible for 5,830 Mt of emissions from all sources.
El Salvador rejects IMF call to abandon Bitcoin as legal tender
The government of El Salvador has rejected a recommendation by the International Monetary Fund (IMF) to drop bitcoin as legal tender in the country.
El Salvador’s Finance Minister Alejandro Zelaya told a local television station that bitcoin is an issue of “sovereignty.” According to the media, he “angrily” said:
No international organization is going to make us do anything, anything at all.
Bonus Bite: Bitcoin inflows suggest institutional investors are moving back into the market
Bitcoin and the crypto market at large had suffered outflows that coincided with the massive sell-offs that rocked the market. This contributed to the downtrend that saw bitcoin touch towards six-month lows while investors who had gotten into the market later suffered massive losses. This outflow trend is beginning to reverse so as bitcoin and other digital assets begin to record inflows after a long drought.
For the latest Bitcoin prices, check out NDAX's BTC Price page