Dispatch #182: A Quick Trip to the Moon

Mar 08•4 min read

In this patch of your weekly Dispatch:

  • The capital flows 🍀
  • The regulatory expansion 🌏
  • The crypto awards 🏆

The Big Idea

Bitcoin’s New Price Record

Credit where credit’s due. The expectations towards Bitcoin were so big in recent months, that anything less than a new all-time high would’ve been a huge disappointment. Fortunately, BTC delivered – as of March 5, Bitcoin has reached a new price record. The official number is $69,171, according to Nexo markets data.

NB: Bitcoin reached another all-time high of $69,635 on March 8, following the editor's closing for this issue.

What didn’t happen (and many were probably expecting it) is for Bitcoin to rip right through to six-figures.

  • Bitcoin's recent price surge towards a record high has prompted profit-taking among investors, leading to a temporary resistance in its rally. The gap between potential sellers and buyers in Bitcoin's order book has widened significantly, indicating increased selling pressure. Liquidity on the selling side has been relatively higher since late January, suggesting investors are cashing out on the rise.
  • The quick reversal from the new ATH, prompted some early miners to sell their old block rewards, adding pressure to Bitcoin's price, media reports. On-chain data reveals that just before Bitcoin hit new highs and then dropped, 1,000 Bitcoin worth approximately $69M were transferred from addresses linked to miners.

One would think that such intense selling pressure could’ve pushed Bitcoin lower than the $65,000 it currently hovers around. In reality, when adjusted for inflation, Bitcoin has not marked a new all-time high, as pointed out by Nexo Co-Founder Antoni Trenchev. And you know what? That six-figure Bitcoin may not be a long way out.

The Latest In…

Nexo Grabs the Headlines

Bitcoin is constantly at the forefront of the media, especially now fresh off a new ATH. But this week, it’s Nexo that has also managed to grab a few stories of our own.

  • It was CoinDesk that first reported on Nexo’s massive step towards obtaining initial approval from Dubai’s Virtual Asset Regulatory Authority (VARA) for the company’s Dubai entity.
  • Our very own Antoni reaffirmed his $100,000 price prediction to CNBC, while also reminding us on Yahoo Finance why we are all in crypto – because we care about purchasing power and sound money.
  • In Bitcoin land, Nexo’s Andrey Stoychev discussed energy consumption on Cointelegraph.
  • And in Ethereum land, our Head of Blockchain Niki Angelov said to Forbes: “For a network to be user-friendly, there are two prerequisites: It should be quick and cheap.”

A busy week in the media department!

The Latest In…

Solana’s Bullish Award

Solana has been named Crypto of the Year at the recent CoinMarketCap awards, solidifying its position as a frontrunner in the crypto space. The blockchain triumphed over strong contenders like Ripple and Ethereum. And judging by recent numbers, it may be deserved – Solana has surged past previous highs, currently above $140. It also witnessed sky-high trading volume, with $9.5B worth of SOL changing hands.

In addition to Solana, other notable winners include BlackRock for Bridge Builder of the Year, BONK for Memecoin of the Year, ZachXBT for Social Influencer to Watch, Celestia for Most Innovative L1/L2/Cross-Chain Project, and Pudgy Penguins for Most Innovative NFT and Gaming Project.

The Latest In…

Capital Round-Up

The recent surge in cryptocurrency prices has produced some tasty numbers for the community to enjoy. Here’s what the bull run has brought:

  • DeFi has surged with its total value locked (TVL) passing $100B for the first time in nearly two years. Additionally, Ethereum staking has hit a notable high, with over 31.5M ETH staked.
  • Tether’s USDT has surpassed a $100B market cap for the first time, driven by bullish sentiment in the cryptocurrency market. Tether's 24-hour trading volume reached $181B mid-week.
  • Institutional investors and wealth managers are set to increase crypto investments in the year ahead, with 74% planning to raise allocations, according to Nickel Digital research. 87% find current opportunities attractive, with 92% optimistic about the next five years. 🤩

The Week’s Most Interesting Data Story

The Up-only Society

Most Bitcoin-holding addresses are now "in the money," with over 99% of them in profit, marking the highest proportion since November 2021's record high. This bullish trend indicates a strong market sentiment, particularly as new investors enter the market.

Hot Topics

What the Community Is Discussing

They just keep going…

Whale-watching in the blockchain.

Some food for thought.

What to Watch for Next Week:

  • Can the Halving bring another ATH?
  • Can Ethereum secure its own ETF?
  • Can Asia take the regulatory lead?