In a week filled with exciting developments in the world of cryptocurrency, Bitcoin has hit a two-year high, MicroStrategy’s profits have doubled, and the two largest NFT creators are merging together. These stories, along with others, have captured the attention of investors and enthusiasts alike.
Bitcoin’s market value surpassed $1 trillion last week, reaching its highest level since late 2021. The cryptocurrency is already up 20% year to date, with a unique feature of this rally being its rise alongside the resurgent U.S. dollar index and 10-year U.S. Treasury yields. Historically, Bitcoin has had a negative correlation with the dollar, making this recent trend noteworthy.
MicroStrategy, the largest corporate owner of Bitcoin, has seen a surge in its holdings’ value to $10 billion as Bitcoin reached its peak this week. With 190,000 Bitcoins acquired at an average cost of around $31,000 per coin, MicroStrategy is now sitting on over $4 billion in profit, doubling its profits from just a few months ago.
In other news, Ledger, a hardware wallet manufacturer, has teamed up with Coinbase to provide a seamless on-ramp for purchasing digital assets. This integration aims to simplify the process for users, allowing them to receive their Coinbase-bought cryptocurrencies directly on their Ledger hardware wallet without additional fees.
Coinbase, the largest US crypto exchange, saw its stock soar 14% after reporting quarterly earnings that surpassed Wall Street expectations. The company attributed its success to increased crypto asset volatility, fueled by the introduction of spot Bitcoin ETFs and a positive macroeconomic outlook.
Additionally, Founders Fund, led by billionaire Peter Thiel, has reentered the crypto market by allocating $200 million evenly between Bitcoin and Ether. Thiel’s fund had previously made a significant profit by aggressively acquiring Bitcoin in 2014 and liquidating before the 2022 market crash.
On the regulatory front, Honduras’ National Banking and Securities Commission has imposed a ban on the country’s financial institutions trading in cryptocurrencies. The resolution aims to prevent supervised institutions from dealing with unauthorized virtual assets, citing concerns about fraud, money laundering, and terrorist financing.
Meanwhile, in Spain, the city of Torrevieja is aspiring to become the country’s first crypto-friendly location. Partnering with the local merchants association, the city plans to establish a crypto hub and attract investment by incentivizing crypto payments and offering courses for merchants on transactional use.
Lastly, Yuga Labs, the largest NFT studio, has acquired ‘Proof’, a rival NFT creator known for the Moonbirds collection. Yuga Labs plans to integrate Moonbirds into its metaverse play Otherside, which will feature avatars from various NFT projects, including Bored Apes, CryptoPunks, and Meebits.
With so many exciting developments in the world of cryptocurrency this week, investors and enthusiasts are eagerly anticipating what the future holds for this rapidly evolving industry. Stay tuned for more updates next week.
