Schlagwort: crypto business

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Ethena surges 20% after Arthur Hayes scoops up 2M ENA tokens

  • Arthur Hayes has invested $1.06 million in ENA.
  • The BitMEX co-founder now holds 7.76M ENA coins, worth approximately $3.73M.
  • The altcoin has gained nearly 20% in the past 24 hours.

Digital tokens traded in the red on Friday as bears dominated amid intensifying profit-booking.

Meanwhile, Ethena was among the few tokens decoupling from the downside wave.

Amid the prevailing selling pressure in the cryptocurrency market, ENA has rallied from yesterday’s intraday low of $0.4268 to $0.5088 on Friday.

That means an around 19% surge, which has attracted attention amidst prevailing downtrends.

Ethena’s rebound has coincided with a massive purchase from BitMEX co-founder Arthur Hayes.

According to Lookonchain, the American entrepreneur has scooped 2.16 million ENA tokens today, worth approximately $1.03 million.

The transactions come as the digital token plunged 25% from the Monday high of $0.5812 to yesterday’s $0.4307.

Meanwhile, the considerable buy demonstrates Hayes’s conviction in Ethena’s future potential.

Furthermore, he did not use one platform to complete the purchases.

The investor sourced his ENA from Binance, Flowdesk, and Galaxy Digital.

That depicts how he strategically uses various liquidity providers to secure his cryptocurrency investments.

Recently, Hayes made headlines for using Flowdesk to acquire AAVE and Lido tokens in an over-the-counter purchase.

Hayes’s confidence in Ethena

The timing and size of the purchase signal trust in the project’s long-term value.

Hayes capitalized on discounted prices to add to his holdings despite prevailing market volatility.

The latest accumulation sent his balance to 7.76 million ENA tokens, worth approximately $3.73 million.

Ethena allows users to access DeFi yields and a synthetic dollar, USDe.

It has gained increased traction lately, with its circulating supply topping $6 billion.

While not all market participants follow fundamentals, Hayes’s involvement is adequate to influence sentiments.

The latest purchase could magnify trust in the project and attract more investors to the Ethena ecosystem.

Retail and some institutional players use such indicators to increase their balances or re-enter the market.

That seems to be paying out as ENA witnessed increased attention, bullish sentiments, and spiked volumes hours after Hayes’s purchase.

Ethena’s Open Interest gas increased by 16% to $835.17 million, while volume soared 15% to $2.83 billion (Coinglass data). Moreover, the 1.0276 24H long/short ratio shows that most traders are bullish as they bet on price recoveries.

ENA price outlook

The native token traded in green amidst the optimistic developments.

ENA hovers at $0.4933 after correcting from intraday highs.

The rally came even as bears dominated the cryptocurrency space, with Bitcoin down 2% in the past day to press time’s $115,150.

Meanwhile, the $117,000 – $119,700 zone remains crucial for BTC’s directional trajectory.

A decisive candlestick closing outside this range will pave the way for the next significant move.

Ethena’s current outlook reflects how major players can influence sentiments and prices in the digital tokens industry.

Bullish enthusiasts will watch ENA’s performance in the upcoming sessions to see how timely Hayes’ purchase is.

The post Ethena surges 20% after Arthur Hayes scoops up 2M ENA tokens appeared first on CoinJournal.

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Ether climbs above $3,600, but technical indicators show signs of weakness

Key takeaways

  • ETH is up nearly 2% in the last 24 hours and now trades above $3,600.
  • Technical indicators are showing signs of weakness, suggesting a bearish trend for the coin.

ETH stays above $3,600 as BTC dips

The cryptocurrency market has been volatile over the last couple of hours, with Bitcoin dropping below the $116k level. Bitcoin lost nearly 2% of its value and now risks dropping below $115k if the selloff continues.

However, Ether, the second-largest cryptocurrency by market cap, is currently in the green after adding more than 1% to its value in the last 24 hours. This allowed it to top the $3,600 mark.

However, the technical indicators are suggesting signs of weakness, and ETH could experience a selloff. The higher timeframe chart remains bullish, indicating that the buyers are still in control. 

ETH could retest $3k if the bearish trend persists

The ETH/USD 4-hour chart remains bullish as Ether outperforms Bitcoin and some other leading cryptocurrencies. The price is also efficient, suggesting that ETH could be getting ready for another upward movement. 

However, the technical indicators on the lower timeframe are switching bearish, suggesting a selloff on the horizon. ETH failed to find support around the daily level of $3.730 and declined below $3,600.

ETH/USD 4H Chart

However, it has recovered its position above $3,600. If Ether closes below the $3,500 daily candle, it could experience a correction to retest the $3,000 psychological level. 

The Relative Strength Index of 49 shows that the bulls are losing control of the market, indicating a fading bullish momentum.

Furthermore, ETH’s MACD indicator is converging closer together, and the green histogram bars are also falling, both suggesting a growing bearish appetite.

On the flipside, if ETH’s daily candle closes above $3,500, the bulls could push the price higher in the near term. ETH could retest the $3,730 resistance level in the coming hours or days before aiming for the $4k psychological level.

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Michael Saylor’s Strategy upsizes ‘stretch’ preferred stock sale to $2.8 billion

  • Michael Saylor’s Strategy launched and upsized a new preferred stock offering from $500M to $2.8 billion.
  • The ‘Stretch’ security promises a hefty 9% annual payout with no end date and a flexible, adjustable dividend.
  • The deal is the latest in Saylor’s years-long effort to transform Strategy into a financial vehicle to acquire Bitcoin.

Michael Saylor’s relentless quest to transform his company, Strategy, into a Bitcoin-acquiring financial juggernaut has reached a new level of ambition.

The firm has launched and then promptly upsized a novel preferred stock offering, raising a staggering $2.8 billion in a deal that further showcases Saylor’s prowess in the capital markets and the insatiable investor appetite for exposure to the booming crypto market.

As crypto prices continue their upward march, Saylor’s Bitcoin holding company, Strategy, has once again demonstrated its unique ability to tap into market enthusiasm.

The company priced a new kind of security on Thursday, which it has dubbed “Stretch.” This offering promises buyers a hefty 9% annual payout with no specified end date, an unusual feature in the often-arcane world of preferred stock.

Initially planned as a $500 million deal, the offering was upsized to $2.8 billion due to overwhelming demand, according to a person familiar with the transaction who asked to remain anonymous.

This move is the latest, and perhaps most audacious, demonstration of Saylor’s Wall Street wizardry in his years-long effort to pivot a middling software firm, formerly known as MicroStrategy, into a corporate entity singularly obsessed with one goal: raising as much money as possible to acquire as many Bitcoin as possible.

At last count, the company’s hoard stood at some 600,000 coins, worth approximately $70 billion.

“This is not the first financial engineering initiative by Strategy,” noted Campbell Harvey, a professor at Duke University. “In any situation where your company is worth far more than fundamental value, you raise money.”

Since Strategy’s first groundbreaking Bitcoin purchase in 2020, Saylor has employed a diverse range of financial instruments, including selling equity, issuing various types of debt, and layering multiple stacks of preferred shares.

In doing so, he has not only amassed a colossal Bitcoin treasury but has also inspired a fleet of imitators, spurring a new industry of public companies dedicated to the so-called “treasury strategy” of buying and holding cryptocurrencies.

The ‘Stretch’ security: a new twist on an old theme

Many of the previous financial instruments that have fueled Strategy’s rise have proven to be more popular than expected, but even against that backdrop, the demand for “Stretch” was notable.

The company’s common shares rose 0.5% on Wednesday and are up an impressive 43% for the year.

The new “Stretch” shares occupy a specific place in Strategy’s complex and unusual capital structure.

They sit above the company’s common stock and its other preferred shares—which carry creative names like “Strike” and “Stride”—but remain subordinate to its convertible bonds and another preferred stock known as “Strife.”

A key feature that distinguishes “Stretch” from earlier offerings is its flexible dividend. Unlike a fixed payout, this security allows Strategy to tweak the dividend rate.

Each month, the firm will set a new payout rate with the aim of keeping the share price near the $100 mark, raising or lowering the dividend as needed to maintain this target. It’s a unique combination of a dynamic pricing model and a trust exercise, and a clear reminder that in the world of financial engineering, Strategy often creates its own rules.

Diminishing returns? A discount to win over investors

While this flexibility may appeal to Saylor’s large and dedicated fan base of retail investors, it also introduces a new layer of uncertainty into an already complex capital structure.

There are some signs that Saylor’s tactics may be facing somewhat diminishing returns, as the value of the company, relative to the Bitcoin it owns, has reportedly gone down.

In a move to win over investors for its latest offering, Strategy offered the “Stretch” shares at a discount. The shares, which are set to carry an initial dividend of 9%, were sold for $90 each.

This was at the bottom of the marketed range and represents a discount to their face value of $100, according to the person familiar with the deal.

Despite the discount, the outsized demand for the deal provides the latest and most powerful sign of both Saylor’s avid following and the continued speculative fervor that is running through the financial markets.

According to a previous Bloomberg report, major financial institutions including Morgan Stanley, Barclays Plc, Moelis & Co., and TD Securities worked on this landmark deal.

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DOGE slips to $0.234 after 6-month high

  • Short-term holders trigger correction by locking in gains.
  • DOGE trades at $0.234, below key resistance at $0.245.
  • Price could test $0.198 if $0.220 support fails.

Dogecoin has shed 15% of its value after reaching a six-month high earlier this month, as a wave of profit-taking among short-term holders triggered a reversal in the memecoin’s recent rally.

The downturn reflects a broader pattern of sell-offs across the cryptocurrency market, where traders are taking gains off the table amid uncertain macroeconomic signals and resistance at key price levels.

At the time of writing, Dogecoin is trading at $0.234, down from recent highs and sitting below the key resistance level of $0.245.

The pullback marks a significant change in sentiment after a period of renewed optimism.

Dogecoin price
Source: CoinMarketCap

Investor behaviour signals short-term weakness

The realised profit/loss ratio for Dogecoin surged this week, reaching its highest level in six months. This metric tracks the profit or loss recorded by investors at the time of selling.

A sharp rise in this indicator suggests a large number of holders are exiting positions in profit, indicating that confidence in further gains is weakening.

This wave of profit-taking has mostly come from short-term investors, who contributed heavily to DOGE’s recent price correction.

The decision to lock in gains at current levels has put downward pressure on the coin’s price action, suggesting a reluctance to hold through potential near-term volatility.

Market participants are closely watching the $0.220 support level.

If DOGE drops below this zone, it could fall further to around $0.198—a key area last seen in earlier trading cycles.

Long-term holders remain steady amid volatility

Despite the short-term selling, Dogecoin’s long-term outlook may not be entirely compromised.

One key indicator, Liveliness—which measures the activity of long-term holders (LTHs)—continues to decline.

This trend suggests that LTHs are not moving their DOGE, implying they are not joining the sell-off.

This reluctance to liquidate positions has previously served as a stabilising force for Dogecoin during periods of intense market activity.

The declining Liveliness could act as a cushion, slowing the pace of the current correction and potentially preventing a full breakdown in price.

Market analysts often view the behaviour of LTHs as a bellwether for a coin’s resilience.

Their current stance suggests that Dogecoin may still have underlying strength, provided the support levels hold and broader sentiment doesn’t worsen further.

Critical resistance could define next move

Dogecoin’s short-term trajectory will likely hinge on whether it can reclaim the $0.245 resistance level.

A breakout above this threshold could invalidate the current bearish setup and open the door to a recovery towards $0.268.

On the other hand, continued profit-taking without fresh buying momentum could see DOGE extend its losses.

If the $0.220 support gives way, the market could quickly test lower support at $0.198.

As it stands, Dogecoin’s future price action will depend on whether long-term holders can provide enough support to offset the current selling pressure from short-term investors.

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Bitcoin price prediction: BTC dips below $118k as $120k resistance level holds

Key takeaways

  • BTC dips below $118k as altcoins record huge losses.
  • The leading cryptocurrency could drop below the $116k support level if bearish sentiment grows stronger.

Bitcoin stagnates around $117k as altcoins bleed

The cryptocurrency market has been bearish over the last 24 hours after enjoying a bullish trend over the last couple of days. Bitcoin, the leading cryptocurrency by market cap, is down by less than 1% in the last 24 hours and now trades around $117k.

However, altcoins recorded heavy losses as they undergo a correction. XRP is down 11% and risks dropping below $3.0 while Ether could drop below $3,500 after losing 3% of its value.

Solana, BNB, TRX, ADA, and Dogecoin are all trading in the red. The bearish performance saw the total crypto market cap decline by 2.6% to now stand at $3.85 trillion. This comes a few days after the total crypto market cap hit a record high of $4 trillion.

BTC risks dropping below $116k if selling pressure increases

The BTC/USD 4-hour chart is bullish and efficient, suggesting that the bulls are still in control despite signs of weakness. The technical indicators remain bullish but have slowed down over the past few days.

The pair is currently consolidating and could either expand to the upside to a new all-time high or face a correction downward. BTC could likely retest the $116k support and TLQ level over the next few hours. The TLQ level could serve as a liquidity to push BTC’s price higher. However, failure to defend this level could see BTC drop lower.

BTC/USD 4H Chart

The MACD lines are in the neutral zone, suggesting that the market is consolidating. The RSI of 51 also shows that buyers are losing control of the market.

If the bulls fail to defend the $116k support level, BTC could experience a sharp decline towards the next support at $112k. However, if the TLQ at $116k serves as a springboard, it would push BTC above the $120k resistance and towards a new all-time high.

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