Bitcoin (BTC) News Today: MicroStrategy Buys 9,245 BTC Amid Market Volatility

Bob Mason
Published: Mar 20, 2024, 03:38 GMT+00:00

Key Points:

  • BTC tumbled 8.37% on Tuesday (Mar 19), ending the session at $61,994.
  • Fed fear impacted BTC-spot ETF market flows, sending BTC and the broader market into negative territory.
  • On Wednesday, BTC-spot ETF market flow data for Mar 19 and Mar 20 and the Fed need consideration.
Bitcoin (BTC) News Today

In this article:

BTC-Spot ETF Market Sees Net Outflows for the First Time Since Mar 1

On Tuesday (Mar 19), BTC tumbled 8.37%. Following a 1.22% loss on Monday, BTC ended the session at $61.994.

Fed fear gripped the crypto market. BTC-spot ETF market flow data reflected investor sentiment toward the looming FOMC interest rate decision, projections, and press conference.

Recent US inflation numbers reduced bets on an H1 2024 Fed rate cut. This week, US housing sector data signaled strong demand and a resilient US economy, adding more Fed monetary policy uncertainty.

On Monday, Mar 18, the BTC-spot ETF market saw total net outflows of $154.4 million. Grayscale Bitcoin Trust (GBTC) saw net outflows surge from $139.4 million (Mar 15) to $642.5 million (Mar 18). Significantly, Fidelity Wise Origin Bitcoin Fund (FBTC) saw net inflows tumble from $155.6 million to a record low of $5.9 million on Mar 18.

iShares Bitcoin Trust (IBIT) remained the stalwart of the spot ETF market, with net inflows rising from $139.8 million to $451.5 million on Mar 18.

According to the figures from BitMEX Research, the BTC-spot ETF market saw net outflows for the first time since Mar 1.

BTC-Spot ETF Market Flow Data for Mar 19 in Focus

After negative outflows on Mar 18, BTC-spot ETF market flow data for Mar 19 could be pivotal. Early data from Farside Investors point to another session of net outflows.

GBTC saw net outflows of $444 million, according to provisional numbers. FBTC saw net inflows of $39.6 million. IBIT needs about $400 million of net inflows to avoid successive sessions of net outflows.

MicroStrategy Ignores Market Volatility with 9,245 BTC Purchase

On Tuesday, MicroStrategy (MSTR) founder and Chairman Michael Saylor announced the latest BTC purchase, saying,

“MicroStrategy has acquired an additional 9,245 BTC for ~$623.0M using proceeds from convertible notes & excess cash for ~$67,382 per bitcoin. As of 3/18/24, MSTR hodls 214,246 $BTC acquired for ~$7.53B at average price of $35,160 per bitcoin.”

Nonetheless, MicroStrategy saw its share price reflect the sharp BTC retreat from the Mar 14 high of $73,808.

MSTR declined by 5.67% on Tuesday (Mar 19). Following a 15.69% tumble on Monday (Mar 18), MSTR ended the session at 1,418.

MSTR share price sinks on BTC retreat.
MSTR Daily Chart 200324

Ethereum Slumps on Lack of Progress Toward ETH-Spot ETF Market

Market sentiment toward the SEC approving the ETH-spot ETF applications in the May window sank ETH. On Tuesday, ETH slid by 10.27%, ending the session at 3,159.

Bloomberg Intelligence Senior ETH Analyst Eric Balchunas and ETH Analyst James Seyffart cut bets on ETH-spot ETF approvals in May.

On Tuesday, Seyffart responded to a Mar 11 post from Eric Balchunas, saying,

“My cautiously optimistic attitude for ETH ETFs has changed from recent months. We now believe these will ultimately be denied May 23 for this round. The SEC hasn’t engaged with issuers on Ethereum specifics. Exact opposite of Bitcoin ETFs this fall.”

On Mar 11, Balchunas gave odds of ETH-spot ETF approvals by the May deadline of 35%.

Technical Analysis

Bitcoin Analysis

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

A BTC breakout from the $64,000 resistance level could signal a move to the $69,000 resistance level. A break above the $69,000 resistance level would bring the ATH $73,808 into play.

On Wednesday, BTC-spot ETF flow data and the US Federal Reserve need consideration.

Conversely, a drop below the $60,365 support level could give the bears a run at the 50-day EMA.

The 14-Daily RSI reading, 48.39, indicates a BTC fall to the 50-day EMA before entering oversold territory.

BTC Daily Chart sends bullish price signals.
BTCUSD 200324 Daily Chart

Ethereum Analysis

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

An ETH breakout from the $3,244 resistance level could give the bulls a run at the $3,480 resistance level.

Crypto-spot ETF-related chatter needs consideration.

Conversely, an ETH fall through the 50-day EMA would give the bears a run at the $3,033 support level.

The 14-period Daily RSI at 41.46 suggests an ETH fall to the $3,033 support level before entering oversold territory.

ETH Daily Chart sends bullish price signals.
ETHUSD 200324 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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