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Bitcoin (BTC) News Today: MicroStrategy Boosts Confidence Amid BTC Rally

By:
Bob Mason
Published: Feb 28, 2024, 04:01 UTC

Key Points:

  • BTC gained 4.74% on Tuesday, closing the session at $57,044.
  • BTC-spot ETF market flows and MicroStrategy-related news sent BTC to a session high of $57,612.
  • On Wednesday, investors must monitor BTC-spot ETF market flow data.
Bitcoin (BTC) News Today

In this article:

BTC-Spot ETF Market Flows Extend BTC Winning Streak to Four Sessions

On Tuesday, BTC gained 4.74%. Following a 5.35% rally on Tuesday, BTC ended the session at $57,044. Significantly, BTC held onto the $57,000 handle for the first time since December 1, 2021.

BTC-spot ETF market flow data for February 26 (Monday) sent BTC toward the $60,000 handle. Total inflows jumped from $232.3 million on February 23 (Friday) to $519.8 million (Monday).

Fidelity Wise Origin Bitcoin Fund (FBTC) led the way, with net inflows of $243.3 million. ARK 21Shares Bitcoin ETF (ARKB) saw net inflows of $130.6 million, leaving iShares Bitcoin Trust (IBIT) in third place. IBIT ranked third by net inflows for the first time since the launch of the Nine on January 11.

BTC-spot ETF market net inflows surged on Monday, February 26.
BitMEX Research Flows for 26/02/24

Bloomberg Intelligence Senior ETF Analyst Eric Balchunas shared trading volumes for the February 27 session, saying,

“Another intense volume day for the Nine with well over $2b traded. $IBIT broke its personal record again w/ $1.3b (for context that’s more than most large cap US stocks trade). I don’t know if this is a new normal or some kind of short-term algo/arb-related burst a la HODL.”

Balchunas also shared trade data for IBIT, noting that IBIT had over 100,000 trades, up from the 30-60k range since launch.

Looking for BTC trends for the Wednesday session, early BTC-spot ETF flow data for February 27 showed a marked increase in net outflows for the Grayscale Bitcoin Fund (GBTC). GBTC saw net outflows of $126 million, up from $22.4 million on February 26.

According to figures from Farside Investors, net inflows were down to $54.1 million on February 27, excluding IBIT and BTCO numbers. IBIT net inflows must impress to keep the momentum.

While BTC-spot ETF market flow data remains the focal point, MicroStrategy (MSTR) news contributed to the Tuesday gains.

MicroStrategy Acquires More BTC in a Sign of Confidence

On Monday, MicroStrategy founder and Chairman Michael Saylor announced the acquisition of 3,000 BTC for approximately $155 million at an average price of $51,813 per bitcoin. The purchase took the total BTC holding to 193,000 BTC, acquired for about $6.09 billion at an average purchase price of $31,544.

MicroStrategy has been on a tear this week, rallying by 9.46% on Tuesday after surging 15.86% on Monday. MSTR is enjoying a positive start to 2024. After rising by 346.15% in 2023, MSTR was up 38.03% year-to-date on Tuesday, February 27. By comparison, NVIDIA (NVDA) is up 58.92% in 2024 after gaining 238.87% in 2024.

MSTR enjoyed a breakout start to the week.
MSTR Daily Chart 280224

Technical Analysis

Bitcoin Analysis

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

A BTC breakout from the $57,000 resistance level and the Tuesday high of $57,612 would give the bulls a run at $60,000.

BTC-spot ETF market flow data need consideration.

However, a fall through the $55,000 handle would give the bears a run at the $53,000 support level.

The 14-Daily RSI reading, 80.61, shows BTC in overbought territory. Selling pressure may intensify at the Tuesday high of $57,612.

BTC Daily Chart sends bullish price signals.
BTCUSD 280224 Daily Chart

Ethereum Analysis

ETH sat well above the 50-day and 200-day EMAs, sending bullish price signals.

An ETH break above the Tuesday high of $3,287 would give the bulls a run at the $3,350 handle.

ETH-spot ETF-related chatter warrants investor attention.

However, an ETH fall through the $3,200 support level would bring the $3,000 handle into view.

The 14-period Daily RSI at 81.55 shows ETH in overbought territory. Selling pressure may intensify at the Tuesday high of $3,287.

ETH Daily Chart sends bullish price signals.
ETHUSD 280224 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.

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