Bitcoin: The Roaring Bull Amidst the Inflationary Flames🔥💰

What to know:

By James Van Straten (All times ET unless indicated otherwise)

Ah, Bitcoin (BTC), our beloved digital messiah, continues to scale the lofty mountains of doubt, now resting above the astonishing peak of $97,000. Yes, while the inflation reports from the U.S. blare like a desperate town crier, Bitcoin seems unperturbed—its audacity promising to light up our weary paths. Crazy, isn’t it? With more dollars chasing fewer goods, the prudent investor might think this is the moment to reconsider their risk appetite. But alas, Bitcoin dances upon the grave of conventional wisdom, gloating like a cat that got the cream! 🐱🥛

This buoyancy, however, may be rooted in something more optimistic—perhaps a belief among the masses that inflation shall ease, just as winter gives way to spring. “Look! A vast landscape of roses lies ahead!” they whisper to each other, as if the specter of rising prices could merely vanish like smoke.

“Relief for Bitcoin may be nigh!” proclaims Andre Dragosch, the soothsayer at Bitwise, interpreting the high-frequency U.S. inflation indicators. He speaks of a future where inflation wanes like a hangover on a bright Sunday morning, perhaps reaching a comforting 2.06%.

But let us not forget the omnipotent Federal Reserve, ever cautious, a puppet master afraid of the tumultuous 1970s. “Let us tread gingerly, lest we sting the bear!” they seem to murmur, recalling the dramatic spikes of yore. “Too much joy could tempt fate!” And thus, the Bitcoin bull market, shrouded in mystery, appears to trundle onward, fortified by historical lore.

Marvel at the 200-week moving average, a serene barometer resting around $44,200, a distant echo of Bitcoin’s former glory at $69,000. The charts suggest a potential ascension to heights previously unscaled, with eager investors—those whimsical souls—clutching their tokens for dear life.

As if the Gods themselves conspired, Coinbase, with its robust revenues, stands alongside Robinhood, and even the likes of GameStop ponder the tantalizing nibbles of Bitcoin. “Stay alert!” they say, as if stirred from a slumber where treasures abound.

Conferences:

CoinDesk’s Consensus is striding into Hong Kong on Feb. 18-20 and then prancing to Toronto on May 14-16. Use code DAYBOOK and save 15% on passes.

Day 2 of 2: The 4th Edition of NFT Paris.
Feb. 18-20: Consensus Hong Kong
Feb. 19: Sui Connect: Hong Kong
Feb. 23 to March 2: ETHDenver 2025 (Denver, Colorado)
Feb. 24: RWA London Summit 2025
Feb. 25: HederaCon 2025 (Denver)

Token Talk

By Francisco Rodrigues

It seems even the ruler of Binance, Changpeng Zhao, has succumbed to the enchantment of canine charm. His dog, Broccoli, has unwittingly become the star of the financial circus, inciting the frenzied fodder of memecoins! The poor man could not escape the cacophony of requests; it’s as if he released a marketing genie!🐕💸

A picture of himself with Broccoli—a noble Belgian Malinois—was shared amidst rising memecoin fever, tokens with the ticker BROCCOLI springing forth like weeds after a spring rain. Initially, fortunes surged for the bold, but soon—inevitably—the tide receded, leaving only a desolate playground of fallen dreams. Like moths to a flame, traders rushed forth, and in less than a blink, one spent a mere $1,000 to birth a token and reaped $6.5 million from the chaotic foray! The madness continues to be a double-edged sword, leaving scars on both BNB and the wallets of hopeful traders.

And so, the whims of the market dictate that the cryptocurrency realm remains rife with uncertainty—yet excitement lurks quietly in the shadows.

Derivatives Positioning

XRP‘s perpetual funding rates remain a curious dance, slightly negative, hinting towards a reserved mindset, despite a fervent 10% price surge. Would the shorts await their reckoning, or will they bravely march to their own demise?
LTC, XLM, and DOGE: three musketeers of the perpetual futures realm, bask in net buying pressure.
The BTC CME futures basis is yet again found lacking, trailing behind Ethereum.
Speaking of options, a bold call option at $3,300 in March whispers of optimism for ETH.

Market Movements:

BTC is up 0.57% from 4 p.m. ET Thursday to $97,093.36 (24hrs: +0.96%)
ETH is up 1.39% at $2706.09 (24hrs: +1.13%)
CoinDesk 20 is up 3.70% to 3,324.03 (24hrs: +3.85%)
Ether CESR Composite Staking Rate is up 1 bps to 3.06%
BTC funding rate is at 0.0035% (3.8632% annualized) on Binance

DXY is down 0.32% at 106.97
Gold glimmers at $2,960/oz, up 1.17%
Silver shimmers at $34.06/oz, up 4.32%
Nikkei suffers a mild wound, closing -0.79% at 39,149.43
Hang Seng flourishes at +3.69% at 22,620.33
FTSE struggles down 0.26% at 8,741.88
Euro Stoxx 50 remains a statue, unchanged at 5,501.78
DJIA gracefully rises +0.77% at 44,711.43
S&P 500 twirls +1.04% at 6,115.07
Nasdaq pirouettes +1.5% at 19,945.64
S&P/TSX Composite Index holds steady at 25,698.5, rising +0.53%
S&P 40 Latin America plays its cards right at +0.69% at 2,438.53
U.S. 10-year Treasury whispers a decline of 7 bps at 4.53%
E-mini S&P 500 futures gently sway down 0.1% to 6,129.25
E-mini Nasdaq-100 futures stand vigil, unchanged at 22,107
E-mini Dow Jones Industrial Average Index futures falter, down to 44,686

Bitcoin Stats:

BTC Dominance: 60.58 (-0.63%)
Ethereum to bitcoin ratio: 0.02783 (0.47%)
Hashrate (seven-day moving average): 818 EH/s
Hashprice (spot): $54.1
Total Fees: 5.67 BTC / $546,770
CME Futures Open Interest: 167,750
BTC priced in gold: 33.0 oz
BTC vs gold market cap: 9.37%

Technical Analysis

XRP has made a bold entrance from the shadows of the Ichimoku cloud, signaling a renewed fervor in the market.
Prepare, dear reader, as the lighthouse of ascending prices beckons—only the bravest may venture beyond its illuminating glow!
A retreat below the clouds, however, signals murmurings of gloom… Tread carefully, oh ambitious ones!

Crypto Equities

MicroStrategy (MSTR): closed on Thursday at $324.92 (-0.58%), up 0.6% at $327.03 in pre-market.
Coinbase Global (COIN): closed at $298.11 (8.44%), down 1% at $295.12.
Galaxy Digital Holdings (GLXY): closed at C$28.37 (+5.58%)
MARA Holdings (MARA): closed at $16.91 (+4.13%), up 0.65% at $17.02
Riot Platforms (RIOT): closed at $12.23 (+9.59%), up 0.1% at $12.24.
Core Scientific (CORZ): closed at $12.54 (+3.72%), down 0.32% at $12.50.
CleanSpark (CLSK): closed at $10.67 (+1.43%), up 0.66% at $10.74.
CoinShares Valkyrie Bitcoin Miners ETF (WGMI): closed at $23.28 (+2.42%), down 1.12% at $23.02.
Semler Scientific (SMLR): closed at $49.45 (+3.69%), up 1.86% at $50.37.
Exodus Movement (EXOD): closed at $50.00 (+2.35%), down 3.34% at $48.33.

ETF Flows

Spot BTC ETFs:

Daily net flow: -$156.8 million
Cumulative net flows: $40.05 billion
Total BTC holdings ~ 1.171 million.

Spot ETH ETFs

Daily net flow: $12.8 million
Cumulative net flows: $3.14 billion
Total ETH holdings ~ 3.777 million.

Overnight Flows

Chart of the Day

Behold the chart that lays bare the tribulations of the U.S. 10-year and two-year Treasury notes.
A decline of 27 basis points crowns the 10-year yield, while its shorter counterpart sheds a modest 10 basis points.
This so-called bull flattening of the Treasury yield curve ignites hopes and dreams among the brave souls who dare to embrace risk! 🌟

In the Ether

2025-02-14 15:32