-
Bitcoin bounded past $29,900 early Wednesday after a MicroStrategy filing to sell $750 million in stock with the capital targeted to purchase more bitcoin.
-
CRV was recently up 5.4% and trading near 60 cents after dipping below 50 cents on Tuesday.
As Asia began its business day, bitcoin jumped past $29,900 after software developer and bitcoin whale MicroStrategy submitted a filing with the Securities and Exchange Commission (SEC) to sell up to $750 million in stock with the intent of using the capital to purchase more BTC.
The largest cryptocurrency by market capitalization was recently trading at $29,900, a more than 2% gain over the past four hours and up more than 4.6% since dipping to $28,574 on Tuesday. MicroStrategy Chairman and bitcoin evangelist Michael Saylor has overseen the company’s purchase of billions of dollars of bitcoin since the pandemic.
Bitcoin’s earlier decline was part of a market downturn stemming from the chaos following a Curve exploit over the weekend. CRV was recently up 7.6% from Tuesday, same time, to trade just below 60 cents. CRV rose more than 20% on Tuesday at one point after falling below 50 cents. The increase came after Sun purchased more than $2 million worth of the token and pledged additional assistance through a liquidity pool on the Tron network.
Ether (ETH), the second largest crypto in market value, was recently changing hands at $1,873, off 0.6% from Tuesday same time. SOL and ADA, the tokens of smart contracts platforms Solana and Cardano, were each more than a percentage point to the green. Ripple’s XRP was up 1%, despite a court ruling casting doubt on its partial legal win against the Securities and Exchange Commission (SEC) last month.
Read More: Judge Rejects Ripple Ruling Precedent in Denying Terraform Labs’ Motion to Dismiss SEC Lawsuit
The CoinDesk Market Index, a measure of crypto markets performance, was up 1.3%.
“Clearly, there are fears over a liquidation cascade happening within the Ethereum DeFi ecosystem, Richard Mico, the U.S. CEO of payment-and-compliance infrastructure provider BanxaI, wrote in an email to CoinDesk. “I don’t know how likely such a cascade is, but the market seems jittery as a result of these metastasizing issues. What’s ironic is that DeFi had held up so well during the blowups of 2022, and yet it’s an exploit more recently that might be the trigger for a DeFi blowup itself now.”
Mico added that a judge’s ruling against stablecoin issuer Terraform Labs’ motion to dismiss a lawsuit against the SEC might “be adding to the relatively soft sentiment in the market,” but he noted that investors were buying up bitcoin’s recent “dips below $29,000…pretty quickly,” a sign that buyers are accumulating in expectation of the SEC approving one of the recent spot BTC ETF applications.
Major U.S. equity indexes were largely down with the Nasdaq Composite and S&P 500 off 0.4% and 0.3%, respectively.
In a note to CoinDesk, Mark Connors, the head of research at Canadian digital asset manager 3iQ, wrote that the recent “shift in market sentiment was NOT limited to digital assets, as equities took a breather.”
“Our bellwether cross asset correlation metric hit a 20Y high as bonds and equities sold off,” Connors wrote. “Looking forward, we will monitor for any sharp reversal from this historically high correlation – as that has often signaled a risk reversal.”
UPDATE (August 1, 2023, 23:43 UTC): Changes headline and opening paragraphs to reflect MicroStrategy filing and bitcoin price increase.
UPDATE (August 2, 2023, 1:24 UTC): Reflects latest price increases for bitcoin and altcoins.