MicroStrategy outperforms the entire stock market ⚡️

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📅 Today

🔍️ Market Outlook

• Overall Bias - Bullish, but only if price closes the week above $57,500 🙏 

• Bitcoin closed the week above $60,000 after dropping to as low as $48,800.

• The 200 Daily Moving Average at $62,400 is now a crucial level to monitor for Bitcoin.

• A rejection from $62,400 with a weekly close below $57,000 would be bearish.

• A breakout from $62,400 with a weekly close above $63,000 would be bullish.

• It is wise to not take any new leveraged positions till this moving average is flipped and prices break the 200 day moving average.

MicroStrategy Outperforms The Entire Stock Market

On August 10, 2020, MicroStrategy became the first publicly traded company to adopt Bitcoin as its primary treasury reserve asset. Four years later, this bold strategy has paid off significantly, outperforming 499/500 stocks from the S&P 500.

MicroStrategy now holds 226,500 BTC worth $13.771 billion, with an average purchase price of $37,000 per BTC, and unrealized profits of $5.39 billion

The company’s stock, MSTR, has surged by 1,000% since its initial Bitcoin purchase, outpacing both Bitcoin’s own returns and the S&P 500. By comparison, Warren Buffett’s Berkshire Hathaway has only gained 104.75%.

Ethereum fees drop to record lows 🔻 

For the first time in four years, Ethereum's average gas fees have dropped below 1 Gwei, costing just $0.08.

This decline is evident across various Ethereum Layer 2 scaling solutions, including Optimism, Base, Arbitrum, and Linea, where fees have fallen below $0.01.

According to L2Beat, platforms like Base and Arbitrum are now handling more transactions than the Ethereum mainnet.

The reduced gas fees have also slowed ETH burning, leading to a supply increase (120 ETH burned, 2,500 ETH added to the supply in the past day). If this trend persists, ETH could potentially become inflationary in the future.

📕 Educational

Understanding survivorship bias in the meme-coin markets 👇️ 

1.7 million tokens created on Pump.Fun till date, out of which only 24,000 could trade on Raydium (1.4%).

Only 141 of these tokens were listed on Coingecko (0.008%)

Only 15 of these could maintain a sustainable $10 mil market cap (0.001%).

Retail investors often focus only on the 0.001% winners which have provided outsized gains, leading to survivorship bias, where they overlook true data points, underestimate risks and overestimate the chances of success, thereby making poor investment choices.

However, despite retail losing all their money, the Pump.Fun platform itself has generated over $84 mil in revenue (574,461 SOL) within just 6 months of launching due to their clever business model.

At Coinsauce, we advise you not to chase the quick buck, and always DYOR before investing any money in crypto.

Sustainable long-term investments will always outperform speculative short term bets with a 0.001% probability of success.

Source : Asva Capital

📊 Stat of the day

📈 Chart of the day

• Rationale & Confluences :

• Macro horizontal support at $2.28

• Daily discount zone

• Daily bullish order-block

• Look out for a re-test of support, along with bullish divergences on the RSI

• A bullish hammer, or engulfing daily candle close after the re-test can be a good sign of price reversal and the start of a fresh up-trend

• Source : Cointraction

🤣Meme of the day

Don’t be one of those 🤣 

That concludes our update for today!

We appreciate you joining us for the latest news. Our aim is to provide the best in class insights and highlights that keep you well-informed and ready. Remember to follow us on Instagram for additional updates and giveaways. Until then, see you next time!

Disclaimer : None of the content shared in the newsletter is financial advise. Always do your own research before investing.