Crypto Weekly: 2/17/2021
As we noted last week, Tesla recently announced it had added $1.5 billion of Bitcoin to its balance sheet. The announcement came less than two weeks after Elon Musk added #Bitcoin to his Twitter bio, an act that caused a huge buzz amongst crypto enthusiasts. Tesla’s Bitcoin purchase adds to the growing list of public companies that are buying and holding Bitcoin in their treasuries.
Source: https://bitcointreasuries.org/
Excluding Tesla, public corporate treasuries currently account for approximately 104,716 Bitcoin or 0.5% of the 21 million total supply cap. Although it has not been reported exactly how many Bitcoin Tesla purchased, we can assume that the purchases were made in January because that was when Tesla amended its investment policy. In January, Bitcoin traded in the range between $27,734 and $42,000 on Coinbase. Assuming Tesla’s purchases averaged the mid-point of the range at ~$35,000, Tesla accumulated about 43,000 Bitcoin with its $1.5 billion investment. Tesla’s Bitcoin position is the second largest public treasury holding behind MicroStrategy, which is currently holding over 71,000 Bitcoin in its treasury.
Just today, MicroStrategy announced they are issuing another convertible note for the purpose of accumulating more Bitcoin to the tune of ...Reports you may have missed
CORE STRATEGY: FOCUS ON MAJORS, KEEP HEAD ON SWIVEL UNTIL BONDS/DXY RELENT We think it's right to expect a bounce into year-end, potentially starting tomorrow if PCE data comes in soft. In our view, this cycle is far from over, but until bonds find a bottom and the USD tops, it’s likely best for the more tactical investor to stay nimble and prepared for opportunities upon confirmation of this trend...
CORE STRATEGY Our base case assumes that the macro environment will remain accommodative for crypto through year-end. However, in light of recent market action, we remain alert for signs of a local top (not a cycle top). That said, it is difficult to justify a risk-averse stance at this stage and think it is right to lean into this altcoin rally. Source: TradingView, Fundstrat Source: TradingView, Fundstrat STRONG DOLLAR +...
Today's employment numbers broadly met investor expectations, placating a nervous market. Risk assets rallied, aligning with our view that yesterday's de-risking would not persist through today. Yields continued their downward trajectory, and Fed funds futures also declined, reflecting the market's adherence to the Fed's dovish messaging. Yields Falling: Source: TradingView Fed Funds Futures Showing More Cuts: Source: TradingView Oil prices nearing YTD lows likely assisted in alleviating near-term concerns about...
INDICATIONS OF FROTH Given the violent nature of the past month’s rally, we have been vigilant for signs of a local top. It would be disingenuous to claim that some qualitative "top signals" are not flashing right now. XRP—which we noted as a possible election trade back in October—with only 1–2k daily active addresses (vs ETH's over 400k, source: Artemis), is ripping toward new highs while influencers take to TikTok...
