The TIE Weekly Insights (Feb 22, 2021)

A huge week for Bitcoin as the price hit a new all time high in addition to passing $1T market cap.

Some highlights from last week:

  • NYDIG Applies for Bitcoin ETF
  • Canada Beats the US by Approving First Bitcoin ETF in North America
  • Ark’s Cathie Wood Expects Bitcoin ETF Approval in US
  • MicroStrategy Raises $1.05B in Latest Debt-for-Bitcoin Offering
  • Janet Yellen Stresses Importance of Crypto Regulation
  • Square Partners with Crypto Group to Create More Black Bitcoin Billionaires
  • ‘Big Short’ Investor Michael Burry Warns Governments Could ‘Squash’ Bitcoin

Market Overview

The total cryptocurrency market cap increased by 18%, growing from $1.49T to $1.77T. In addition to reaching new all time highs this week, Bitcoin’s market cap has surpassed $1T for the first time in its history. The major assets saw a median 7 day return of +6.5%, as BNB led the way with massive +115% gains. Long term sentiment remains positive for all of the majors. Trading volume was down -17%, as well as Tweet volume (-3.2%).

Performance of the Crypto Market

The crypto market saw positive gains over the week, despite all sectors taking a big hit on Monday. The market rebounded on Tuesday as Bitcoin and the Privacy sector led the way. As most privacy coins are currencies, the correlation between the two is typically pretty high. The ALT Index finished the week with the highest returns, despite ETH and DeFi lagging behind everything else.

Bitcoin Reaches New All Time High

The price of Bitcoin traded within a 28% range this past week, from the low of $45,570 to the new all time high of $58,352. The week started relatively bearish, as BTC dipped -5% on Monday before trending up for the entire week. Investor sentiment spiked mid-week as talks from Morgan Stanley and Blackrock flooded the media. Additionally, an ETF launched in Canada reached $440M in AUM in just two days, highlighting institutional interest is still rising.

$1 Trillion Market Cap

Social conversations have surged +38% this week as there were over 117,000 tweets sent out about Bitcoin on the day that BTC hit $1T market cap. Additionally, the number of Twitter users talking about Bitcoin on a daily basis has reached a new all time high of 38,500, up 325% from a year ago.

Cardano

Cardano rises fast and furious on the back of a mainnet announcement and news cycle onslaught.Since a testnet fork and mainnet teaser on 2/3, $ADA has exploded with 135% returns. Tweet volume surges 146% as a news wave sparks interest, and price careens to new yearly highs!

Alpha

After losing $37 million in an exploit, $ALPHA tanks 39% and hourly sentiment hovers at a lukewarm 40. However, after announcing a fund repayment program with $CREAM, sentiment soars 60%, peaking at 66! Price has since recovered a stunning 20% off its lows. Is there more to come?

Stellar

A sleeping giant? After Circle launches USDcoin on the Stellar network, Stellar $XLM’s marketcap almost doubles with little chatter from social media (NVTweet ratio). Big hands scoop up supply as price increases 143%!

Litecoin

Can you teach an old dog new tricks? Litecoin $LTC joins the DeFiChain “DeFi-train” and discussion surrounding this aged coin more than doubles. Prices rise 28% but conversation has since tapered off. Does Charlie still have bite?

Notable News

Cathie Wood’s Ark ETFs added over 130,000 shares of Tesla since the EV maker’s $1.5 billion bitcoin buy

Contact us for a demo of our SigDev platform to view all market-moving events in real-time.

This Week’s Podcast Episodes

Ep. 37 Trading a Crypto Bull Market with Avi Felman (BlockTower Capital)
Avi Felman (Head of Trading at BlockTower Capital) joins The TIE’s Fundamental Value Podcast to discuss trading crypto bull markets, valuing digital assets, institutional interest, and the rise of DeFi. Listen here

Stay up to date with our research

Sign up to receive an email when we release a new post

+ posts