Hong Kong News On Monday (February 20) in the Asian market, Bitcoin took a breather at the level of $51,900. The Bitcoin spot ETF suspended trading due to the US President’s Day holiday. Former U.S. President Trump sold his Ethereum holdings early. Now as Ethereum approaches $3,000 again, he missed out on a profit of $500,000. With the return of the Bitcoin bull market, micro-strategies listed in the United States outperformed the S&P 500 Index.
According to data from blockchain analysis company Arkham Intelligence, in early 2024, Trump sold more than 1,000 ether coins in a few weeks. Arkham Intelligence has been tracking Trump’s Ethereum wallet, which they first obtained through the former president’s financial documents and disclosures.
Trump received most of his ether from a non-fungible token (NFT) project using his name, image and likeness, and in December 2022, NFT International, the company behind numerous NFT projects, released a set of 45,000 NFT, priced at $99 each. Over the past few years, the project’s transaction volume has exceeded 15,500 Ethereum coins.
The project is a set of digital trading cards featuring the former president in different poses, different scenes, and different accessories. Currently, the cheapest NFT sells for over $650 and the most expensive costs 37 ETH.
In late 2023, Trump also announced another trading card NFT project based on his photo. The NFT is also priced at $99, with some exclusive bonuses available. For example, users who purchase more than 47 cards will receive one of the suits Trump is wearing in the photo.
Trump has amassed a large amount of ether in the form of royalties from his NFT projects. In late 2023, Trump sent 1,075 ether coins to the Coinbase exchange, possibly for sale. At the time, Ethereum was worth approximately $2.4 million. However, the price of Ethereum has surged since Trump sold some of his positions.
Ethereum is off to a strong start in 2024, rising more than 10%. If Trump had stuck to his guns so far, those 1,075 ether would be worth about $2.9 million, meaning he missed out on an additional $500,000 in gains.
Although Trump missed out on some additional profits, his status had appreciated considerably in the months leading up to the sale. In the month before his sale, ether was up 17%, and in the year before his sale, ether was up 60%.
Ethereum, along with many other cryptocurrencies, will perform well in 2023 and early 2024. However, there may be some Ethereum-specific catalysts in 2024. Most notable are plans for an upgrade to the chain, and the chance for an Ethereum spot ETF to gain traction.
It will be interesting to see how the price of Ethereum changes in 2024, and whether these price changes will lead Trump to sell more Ethereum ahead of the November presidential election.
On Monday, MicroStrategy founder and chairman Michael Saylor shared MicroStrategy and Bitcoin returns since the stock adopted a Bitcoin investment strategy on August 10, 2020. Notably, micro strategies and Bitcoin continued to outperform the S&P 500 despite the S&P 500 crossing the 5,000 mark in early 2024.
By comparison, Bitcoin remains well below its November 2021 all-time high of $69,071. Although some believe that the Bitcoin spot ETF market can give the SEC more regulatory power, Bitcoin spot ETF market liquidity is not the only consideration for potential Bitcoin investors.
Increased demand from self-custody investors could limit the SEC’s impact on Bitcoin and the broader market. The upcoming Bitcoin halving event could be an important moment. A sustainable demand environment could limit access to available Bitcoin in the Bitcoin spot ETF market and further put pressure on the supply and demand balance.
Bitcoin technical analysis
FXEmpire analyst Bob Mason said Bitcoin is well above the 50-day and 200-day moving averages, sending a bullish price signal.
If Bitcoin breaks out from the February 15 high of $52,869, bulls will reach the $55,000 mark.
However, a break below the $51,500 mark will support the decline towards the $50,500 support.
The 14-day RSI reading is 75.55, indicating that Bitcoin is in overbought territory. Selling pressure is likely to intensify at the $52,000 mark.
Ethereum Technical Analysis
Bob noted that Ethereum is hovering above the 50-day and 200-day moving averages, confirming the bullish price trend.
Ethereum’s breakout from Monday’s high of $2,984 will support its move above the $3,000 mark.
However, if Ethereum breaks below the $2,850 mark, bears will attack the $2,650 support.
The 14-period daily RSI is at 76.35, showing that Ethereum is in overbought territory and selling pressure from Monday’s high of $2,984 may intensify.
Ripple technical analysis
Bob mentioned that Ripple remains above the 50-day and 200-day moving averages, confirming the bullish price signal.
Ripple’s breakout of the $0.57 mark will bring the $0.5835 resistance into play.
However, a break below the 200-day EMA will bring the 50-day EMA and $0.5470 support into play.
The 14-day RSI reading is 58.90, indicating that Ripple will move back to the $0.5835 resistance before entering overbought territory.