Bitcoin (BTC) News Today: MicroStrategy’s BTC Purchase Strengthens Market Frenzy

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Published: Mar 12, 2024, 03:18 GMT+00:00

Key Points:

BTC gained 3.39% on Monday, closing the session at $71,401.
MicroStrategy purchase, BTC-spot ETF market chatter, and ETF market flows drove buyer demand for BTC, which struck a new ATH of $72,605.
BTC-spot ETF market flow data and the US CPI Report need investor consideration on Tuesday.

FOMO and MicroStrategy Send BTC to New All-Time High

On Monday, March 11, BTC extended its winning streak to six sessions, rising by 3.39% to end the session at $71,401. Significantly, BTC climbed to a new all-time high of $72,605.

MicroStrategy (MSTR) purchased 12,000 BTC for approximately $821.7 million. Founder and Chairman Michael Saylor shared the news on X (formerly Twitter), saying,

“MicroStrategy has acquired an additional 12,000 BTC for ~$821.7M using proceeds from convertible notes & excess cash for ~$68,477 per bitcoin. As of 3/10/24, MSTR hodls 205,000 BTC acquired for ~$6.91B at average price of $33,706 per bitcoin.”

The purchase meant that MicroStrategy flipped iShares Bitcoin Trust (IBIT), which briefly surpassed MicroStrategy last week.

The MicroStrategy purchase fueled the market fear of missing out (FOMO), with the Bitcoin Halving Event approaching.

Bitcoin Halving Countdown 12/03/24

Saylor also appeared on CNBC. Sharing the interview, the MicroStrategy founder countered anti-BTC rhetoric, saying,

“Bitcoin is Digital Property. It is superior to other investments such as Gold, Equity, or Real Estate because it is digital, available, global, ethical, & useful to millions of companies and billions of people.”

The MicroStrategy purchase occurred before the BTC-spot ETF market flow data began hitting the news wires.

MicroStrategy shares increased by 4.11% to $1,484 on Monday. MSTR shares are up 45.11% for March and 134.99% year-to-date. In contrast, NVIDIA (NVDA) shares are up 73.20% to $857.74 year-to-date.

MSTR v NVDA Daily Chart 120324

BTC-Spot ETF Market Sees Net Inflows

BTC-spot ETF market data for the Monday session also influenced buyer demand for BTC. According to Farside Investors, Grayscale Bitcoin Trust (GBTC) saw net outflows of $494.1 million.

VanEck Bitcoin Trust (HODL) drew investor attention on Monday. Investors reacted to the VanEck dropping sponsor fee from March 12, 2024, until March 31, 2025. HODL saw net inflows rise from $7.8 million (March 8) to an ATH of $118.8 million (March 11). The previous ATH of net inflows was $14.2 million on January 19.

Fidelity Wise Origin Bitcoin Fund (FBTC) saw net inflows increase from $130.3 million (March 8) to $215.5 million (March 11). Despite higher net inflows, iShares Bitcoin Trust (IBIT) must register net inflows above $47.6 million to deliver a sixth successive day of total net inflows.

In contrast to the euphoria surrounding the BTC-spot ETF market, uncertainty about the future of an ETH-spot ETF market lingered.

ETH-Spot ETF May Approval Odds Tumble on Inactivity

On Monday, Bloomberg Intelligence Senior ETF Analyst Eric Balchunas shared the latest odds on the SEC approving ETH-spot ETFs in the May window, saying,

“Yeah our odds of eth ETF approval by May deadline are down to 35%. I get all the reasons they SHOULD approve it (and we personally believe they should) but all the signs/sources that were making us bullish 2.5mo out for btc spot are not there this time. Note: 35% isn’t 0%, still poss, and and long-term we think it will happen.”

However, the falling odds failed to spook investors. ETH rallied 4.72% on Monday, closing the session at $4,064. ETH last held the $4,000 handle in December 2021.

Technical Analysis

Bitcoin Analysis

BTC remained well above the 50-day and 200-day EMAs, sending bullish price signals.

A BTC break above the March 11 all-time high of $72,605 would give the bulls a run at the $75,000 handle.

BTC-spot ETF market flows need consideration.

However, a drop below the $69,000 support level would bring the $63,114 support level into view.

The 14-Daily RSI reading, 77.58, shows BTC sitting in overbought territory. Selling pressure may intensify at the March 11 all-time high of $72,605.

BTC Daily Chart sends bullish price signals.

BTCUSD 120324 Daily Chart

Ethereum Analysis

ETH hovered well above the 50-day and 200-day EMAs, affirming bullish price signals.

An ETH breakout from the March 12 high of $4,093 would give the bulls a run at the $4,200 handle.

Chatter about ETH-spot ETFs remains the main driver.

However, an ETH fall below the $3,800 handle would bring the $3,683 support level into play.

The 14-period Daily RSI, at 84.29, shows ETH in overbought territory. Selling pressure may intensify at the March 12 high of $4,093.

ETH Daily Chart sends bullish price signals.

ETHUSD 120324 Daily Chart

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.