by Nikolas Kessler, Euro on Sunday
PLately things happened very quickly: At the end of the previous week, Bitcoin freed itself from the downward trend of the past few months and started a first clear countermovement. On a weekly basis, the digital key currency is up 17 percent, reducing the loss since the beginning of the year to five percent and the discount to the all-time high of early November to 36 percent.
The recovery tendencies could be felt throughout the crypto market, the cumulative market value of all digital currencies has meanwhile conquered the two trillion dollar mark. In the top ten by market cap (see below), XRP stands out as the biggest gainer with a weekly gain of more than 45 percent.
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Reason for the jump in price: In the legal dispute between the operators of XRP and the US Securities and Exchange Commission, whether the XRP token should be classified as a security or not, there were recently indications of a rapprochement. However, a decision is not expected until summer. As long as the smoldering dispute remains an additional risk.
The trend strength returns
The stablecoins Tether and USD Coin are pegged to the US dollar and are therefore far less volatile than other cryptocurrencies. The fact that they are currently showing the highest trend strength according to the trend signals indicator (TSI) of the Bitcoin Report (www.bitcoinreport.de) is an after-effect of the turbulence of the past few weeks. As the overall market continues to recover, its strength is likely to fall in favor of the other coins.
INVESTOR INFO
Michael J. Saylor, CEO of the software company Microstrategy, has been buying Bitcoins on a large scale since August 2020 and is now even taking on debt for it. At the end of January, the company had 125,051 bitcoins on its balance sheet, which are worth around $5.5 billion at current prices of around $44,000. The company itself is valued at just $4.5 billion on the stock market, but long-term debt of around $2.2 billion must also be taken into account. However, Microstrategy does not seem overrated at this level. Exciting for risk-taking investors who share Saylor’s Bitcoin vision.
The number of financial products with which investors can indirectly participate in the price development of Bitcoin and Co is growing steadily. One of the pioneers in German-speaking countries was the Swiss bank Vontobel, which now offers various crypto certificates. The participation certificate on Bitcoin (WKN: VX1 BTC) enables investors to participate almost one-to-one in the price development of the leading digital currency – without having to open an account with a crypto exchange. Vontobel pays for this convenience with the fee, and in terms of volatility, the certificate is in no way inferior to the underlying.
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Image sources: Wit Olszewski / Shutterstock.com, Finanzen Verlag
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