Crypto
Bitcoin's Rally Sparks General Cryptocurrency Market Surge – NullTX
Bitcoin’s recent impressive performance has been the driving force behind the significant rise in the cryptocurrency market, leaving investors reaping profits as digital currencies experience a sharp increase in value.
The correlation between Bitcoin and stocks has notably strengthened over the past two months, indicating investor optimism surrounding the possibility of an imminent rate cut by the Federal Reserve.
This bullish sentiment has contributed to the market’s positive momentum, with both traditional and digital assets benefitting from the anticipated rate cut.
Bitcoin and stocks appear to be frontrunning the Fed’s rate-cut decision. With the highest correlation in two months, it’s clear investors are bullish on a rate cut happening sooner rather than later pic.twitter.com/2W9XvBWcfG
— IntoTheBlock (@intotheblock) February 18, 2024
Despite Bitcoin whales increasing their balance significantly this year, miners have taken advantage of the recent surge in Bitcoin prices, selling approximately 6,329 $BTC, valued at around $307 million, over the past ten days.
Over the past ten days, #Bitcoin miners have capitalized on the #BTC price surge from $45,000 to over $52,000 by selling approximately 6,329 $BTC, valued at around $307 million! pic.twitter.com/vthHHJMauZ
— Ali (@ali_charts) February 18, 2024
WBTC Whale Notable Transfers To Monitor
Simultaneously, Wrapped Bitcoin (WBTC), the tokenized version of Bitcoin on the Ethereum Blockchain, has witnessed substantial inflows. A recent report highlights a notable transaction where a whale invested 7M $USDC to purchase 136 $WBTC at $51,829 per token.
A whale spent 7M $USDC to buy 136 $WBTC at $51,829 today!
The whale made $5.16M by shorting $BTC during the LUNA/UST crash!
He borrowed 800 $WBTC from #Aave and sold it for 28.76M $USDC at $35,959 from May 1 to May 10, 2022.
Then spent 23.6M $USDC to buy 802 $WBTC and repaid… pic.twitter.com/VfpGEY8xEJ
— Lookonchain (@lookonchain) February 19, 2024
Interestingly, the same whale capitalized on the LUNA/UST crash, earning $5.16M by shorting Bitcoin. The strategy involved borrowing 800 $WBTC from Aave and selling it for 28.76M $USDC at $35,959 between May 1 and May 10, 2022.
Subsequently, the whale reinvested 23.6M $USDC to repurchase 802 $WBTC and repaid the debt on May 12, 2022, generating substantial profits in less than two weeks.
Bitcoin’s resilience and the growing interest in tokenized assets like WBTC underscore the evolving dynamics within the cryptocurrency market, reflecting investors’ confidence and adaptability amidst changing market conditions.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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Image Source: designer491/123RF // Image Effects by Colorcinch
Digital asset treasury companies that rushed to copy Michael Saylor’s Bitcoin strategy are now hemorrhaging shareholder value, with median stock prices down 43% year to date, even as the broader market climbs higher, as per .Source: Bloomberg
More than 100 publicly traded companies transformed themselves into cryptocurrency-holding vehicles in the first half of 2025, borrowing billions to buy digital tokens while their stock prices initially soared past the value of the underlying assets they purchased.
The strategy seemed unstoppable until market reality delivered a harsh correction.Strategy’s Model Spawns Industry-Wide Collapse
Strategy Inc.’s Michael Saylor pioneered the approach of converting corporate cash into Bitcoin holdings, transforming his software company into a publicly traded cryptocurrency treasury.
The model worked spectacularly through the mid-2025, attracting high-profile investors, including the Trump family.
SharpLink Gaming epitomized the frenzy. The company pivoted from traditional gaming operations, appointed an Ethereum co-founder as chairman, and announced massive token purchases.
💰Sharplink Gaming added $80M in Ether to its reserves, lifting total holdings to $3.6B and cementing its spot as the second-largest corporate holder of ETH. — Cryptonews.com (@cryptonews)
Its stock exploded 2,600% within days before crashing 86% from peak levels, leaving total market capitalization below the value of its Ethereum holdings at just 0.9 times crypto reserves.
Bloomberg data tracking 138 U.S. and Canadian digital asset treasuries shows the median share price has fallen 43% year-to-date, dramatically underperforming Bitcoin’s modest 7% decline.
In comparison, the S&P 500 gained 6% and the Nasdaq 100 rose 10%.
Strategy shares have dropped 60% from their July highs, even as they have risen by more than 1,200% since the company began buying Bitcoin in August 2020.Source: Bloomberg
“Investors took a look and understood that there’s not much yield from these holdings rather than just sitting on this pile of money,” B. Riley Securities analyst Fedor Shabalin told Bloomberg.Debt Obligations Expose Structural Flaws
The fundamental problem plaguing these companies stems from how they fund cryptocurrency purchases.
Strategy and its imitators issued massive amounts of convertible bonds and preferred shares, raising over $45 billion across the industry to acquire digital tokens that generate no cash flow.
These debt instruments carry substantial interest and dividend obligations that cryptocurrency holdings cannot service, creating a structural mismatch between liabilities that require regular payments and assets that produce zero income.
Strategy faces annual fixed obligations of approximately $750 million to $800 million tied to preferred shares.
Companies that avoided Bitcoin for smaller, more volatile cryptocurrencies suffered the steepest losses.
Alt5 Sigma, backed by two Trump sons and planning to purchase over $1 billion in World Liberty Financial’s WLFI token, has crashed more than 85% from its June peak.Source:
Strategy attempted to address funding concerns by raising $1.44 billion in dollar reserves through stock sales, covering 21 months of dividend payments.Saylor Admits Potential Bitcoin Sales
The industry now faces its defining moment. Strategy CEO Phong Le the company would sell Bitcoin if needed to fund dividend payments, specifically if the firm’s market value falls below its cryptocurrency holdings.
Those comments sent shockwaves through the digital asset treasury sector, given Saylor’s repeated insistence that Strategy would never sell, famously joking in February to “sell a kidney if you must, but keep the Bitcoin.“
At December’s Binance Blockchain Week, Saylor the revised approach, stating that “when our equity is trading above the net asset value of the Bitcoin, we just sell the equity,” but “when the equity’s trading below the value of the Bitcoin, we would either sell Bitcoin derivatives, or we would just sell the Bitcoin.“
The reversal raises fears of a downward spiral where forced crypto sales push token prices lower, further pressuring treasury company valuations and potentially triggering additional selling.
Strategy’s monthly Bitcoin accumulation has collapsed from 134,000 BTC at the 2024 peak to just 9,100 BTC in November, with only 135 BTC added so far in December.
The company now holds approximately 650,000 BTC, valued at over $56 billion, representing more than 3% of Bitcoin’s maximum supply.
Market participants worry that leveraged traders using borrowed money to invest in these companies could face margin calls, forcing broader market selloffs.
Strategy has created a $1.4 billion reserve fund to cover near-term dividend payments, but shares remain on track for a 38% decline this year despite the company’s massive Bitcoin holdings.
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