Bitcoin Rebounds to $42K: First Mover Americas' Analysis

• Latest Crypto Market Moves
• Optimal Crypto Allocation According to ARK Invest
• Celsius to Distribute $3 Billion in Crypto Following Bankruptcy
• Chart of The Day

Latest Crypto Market Moves

The latest developments in the world of cryptocurrency were influenced by the statement from Federal Reserve Chair Jerome Powell, which led to Bitcoin$42,260 -0.64% trading just above $42,000 in the European morning. His remarks quelled speculations of an interest-rate cut in March, causing Bitcoin to dip to as low as $41,870 on Wednesday. Although it has seen slight upward movement since then, it remains far from its initial value of $43,000 at the start of the week. The performance of the top digital assets, as indicated by the Index 20, has seen a decrease of about 1.1% in the last 24 hours.

Optimal Crypto Allocation According to ARK Invest

In its annual Big Ideas report, ARK Invest suggested that having just under 20% of one's portfolio in cryptocurrency is the optimal allocation. The firm, led by Cathie Wood, noted that Bitcoin outperformed major asset classes over the last seven years. Their analysis recommends a 19.4% allocation to Bitcoin in 2023 to maximize a portfolio's risk-adjusted returns. They provided a comparison, discussing that in 2015 and 2022, the optimal allocation was 0.5% and 6.2% respectively. Bitcoin's low five-year correlation of 0.27 with traditional assets demonstrates its potential benefits in diversification. ARK Invest added that even minimal allocations by institutional investors could significantly influence Bitcoin's price, considering the global investable asset base of $250 trillion.

Celsius to Distribute $3 Billion in Crypto Following Bankruptcy

Post-bankruptcy, cryptocurrency lender Celsius plans to distribute $3 billion in crypto to its creditors. The distribution will be facilitated via Coinbase and PayPal. Creditors will also receive a stake in the newly formed Ionic Digital Inc. mining operation, which is set to become a publicly traded company pending regulatory approval. Additionally, Celsius settled a $4.7 billion case with U.S. authorities regarding allegations of fraud against former CEO Alex Mashinsky. Mashinsky, who is currently out on a $40 million bond, will face trial in September 2024, and his banking and real estate assets have been frozen by court order.

Chart of The Day

The chart indicates the 24-hour change in cumulative volume delta (CVD) in futures and perpetual futures tied to the top 25 cryptocurrencies by market value. Most coins, excluding BTC, TRX, ATOM, and XMR, have seen a negative CVD, suggesting a net selling pressure. This follows Wednesday's comments by Federal Reserve Chairman Jerome Powell which spurred the dollar index to reach a seven-week high.

Edited by Jonathan Stoker