Bitcoin's Golden Cross Yields Mixed Results
Bitcoin's recent performance is drawing comparisons to its golden cross signal in 2019, which preceded a 90% rally in less than two months. This time around, however, the situation bears more resemblance to 2020, when the golden cross took several months to yield significant returns, ultimately delivering a sixfold increase over 10 months.
The current golden cross has already delivered an 110% increase over five months and a twofold increase over two years. The increased sensitivity of Bitcoin's price to concerns about US public finances is also reminiscent of the past. Yet, high interest rates are limiting the narrative's potential.
Crypto funds have been adjusting their strategies accordingly. Strategy, for instance, maintained its BTC reserves last week and instead purchased $176.3 million worth of STRC preference shares. The IRS has proposed reclassifying digital assets as property rather than currency, which could significantly impact mining, trading, and staking.
BitMine's acquisition of ETH also continues apace, with the company purchasing 28,086 ETH last week to bring its total reserves to 5.93 million coins, or 4.91% of the total supply. It still needs to acquire another 106,000 ETH to reach its target.