Bitcoin’s diminishing returns and growing inaccessibility for average retail investors are threatening the predicted extension of the crypto market cycle, according to 10x Research. Bitcoin is becoming increasingly unattainable for average investors, raising questions about whether the current bull market can sustain its momentum beyond the traditional four-year cycle. Crypto market intelligence company 10x Research suggested Bitcoin (BTC) is becoming too expensive for sustained retail purchases, a development that may endanger the predicted extension of the current bull market cycle. Despite numerous calls for an extended market cycle, drawing on the conclusions of the four previous market cycles is “highly questionable,” according to 10x. Read more
Evernorth Holdings is progressing with its plan to launch a publicly traded XRP treasury vehicle on the Nasdaq by accumulating 388.7 million XRP. Evernorth Holdings, a new Ripple-backed digital asset company, has reportedly amassed $1 billion worth of XRP tokens as part of its strategy to establish an XRP treasury. As of Monday, Evernorth’s XRP (XRP) holdings totaled 388.7 million tokens, according to data from digital asset analytics platform CryptoQuant. With XRP trading above $2.60 at the time of publication, the company’s XRP holdings have surpassed the $1 billion mark — a significant milestone in XRP accumulation that came just days after Evernorth’s official debut on Oct. 20 as an institutional vehicle for XRP adoption. Read more
Crypto treasury companies tightened their purse strings after the Oct. 10 market crash, with one exception, said Coinbase’s David Duong. Public companies that buy and hold Bitcoin and Ether have largely stopped accumulating since the market tumbled earlier in October, a move signaling a recent lapse in confidence. Digital asset treasury (DAT) companies that buy Bitcoin (BTC) “have largely ghosted the post-Oct 10 drawdown and are yet to re-engage,” Coinbase Institutional global head of investment research David Duong said on Sunday. “Over the last two weeks, BTC buying by DATs fell to near year-to-date lows and has not meaningfully recovered, even on green days,” he added. Read more
S&P Global Ratings said Strategy’s high Bitcoin concentration and low US dollar liquidity, among other factors, are weaknesses for the firm. S&P Global Ratings has given Michael Saylor’s Strategy a “B-” credit rating, placing it in the speculative, non-investment-grade territory — often referred to as a “junk bond” — although it said the Bitcoin treasury company’s outlook remains stable. “We view Strategy’s high bitcoin concentration, narrow business focus, weak risk-adjusted capitalization, and low US dollar liquidity as weaknesses,” the credit rating platform said in a review of Strategy on Monday. Strategy has accumulated its 640,808 BTC treasury mainly via equity and debt financing. The stable outlook assumes the company will prudently manage convertible debt maturities and maintain preferred stock dividends, potentially through additional debt issuance, it said. Read more