Bitcoin emerges on top after demonstrating a week of resilience as Amazon finally reveals its cards
DATA from CryptoCompare shows that over the last week, the price of the flagship cryptocurrency Bitcoin (BTC) rose around 6% from around $98,700 to now stand at $104,800, after hitting a $105,800 high during the week and enduring a slight correction.
Ethereum’s Ether, the second-largest cryptocurrency by market capitalization, rose around 2.3% over the past week, from $3,850 to now stand at $3,950. The cryptocurrency saw a major dip at the beginning of the week to $3,500 before recovering.
Headlines in the cryptocurrency space this week revealed that Amazon’s shareholders have started pressing for the e-commerce giant to flow in the footsteps of the largest corporate holder of Bitcoin, MicroStrategy, and add BTC to its corporate treasury.
A shareholder proposal shared by conservative think tank the National Center for Public Policy Research (NCPPR) acknowledges that Bitcoin is a volatile asset but adds that corporations “have a responsibility to maximize shareholder value over the long-term as well as the short-term.”
Notably a similar proposal from the NCPPR for Microsoft to add Bitcoin to its balance sheet was rejected by the tech giant’s shareholders. The firm’s board of directors had recommended shareholders reject the resolution, emphasizing the company’s existing strategy of considering a wage range of investable assets within its framework.´
Meanwhile, Nasdaq-listed business intelligence firm MicroStrategy kept on accumulating Bitcoin, acquiring around 21,550 BTC for $2.1 billion last week, at an average price of $98,783 per coin. The company’s cryptocurrency holdings have swollen to 423,650 BTC acquired for a cumulative $25.6 billion.
Meanwhile, a Texas lawmaker has introduced a bill to establish a state-run strategic Bitcoin reserve. Texas Republican Rep. Giovanni Capriglione said the filing came in a bid to establish such a reserve within the state treasury of Texas, and would be funded through donations. The lawmaker noted that the state of Texas would hold onto the Bitcoin reserve for up to five years.
Similarly, a senior Russian lawmaker has proposed the country establish a strategic Bitcoin reserve similar to its traditional currency reserves as “cryptocurrencies are becoming virtually the only instrument for international trade” for countries with “limited access to traditional international payment systems.”
BlackRock advocates for 1-2% Bitcoin allocation in traditional portfolios
The world’s largest asset manager BlackRock has advocated for a 1% to 2% allocation in Bitcoin on the traditional 60/40 portfolio, which is composed of a larger portion of equities than bonds. The firm drew parallels between adding in Bitcoin exposure, and adding exposure to the “magnificent seven” stocks.
According to BlackRock’s Chief Investment Officer for ETFs and Index Investments Samara Cohen, these stocks provide an “example of single portfolio holdings that account for a comparatively large share of portfolio risk” and while they differ from BTC, these factors “make them a useful starting point for assessing the risk of a single holding".
Bitcoin, per the report, has a historically low correlation with traditional markets and has potential as a valuable diversifier. BlackRock’s research suggests a 1% allocation contributes approximately 2% to overall portfolio risk, while a 2% allocation to Bitcoin increases it to 5%.
Meanwhile, analysts at JPMorgan have raised their price targets for several BTC mining firms, reflecting a valuation approach that adds in the miners’ power infrastructure and their Bitcoin holdings. The upgraded targets include those for MARA Holdings (MARA), CleanSpark (CLSK), Riot Platforms (RIOT) and IREN (IREN), with all four of these companies already trading near or above the revised price targets .
Stablecoin sector hits $200 billion market cap milestone
The total market capitalization of the stablecoin sector has reached a new high, surpassing the $200 billion mark, driven by increasing demand for these digital assets as the wider cryptocurrency ecosystem grows. Over the past two weeks, stablecoins have added more than $10 billion to their market capitalization, building upon the previous record of $190 billion set during the 2022 bull cycle, according to data from CCData.
Leading the charge is Tether's USDT, the dominant stablecoin, which has seen its supply reach a record $139 billion after a 12% surge in a single month. This growth can be attributed, in part, to USDT's recent recognition as an accepted virtual asset in Abu Dhabi.
Circle's USDC, the second-largest stablecoin by market capitalization, has also experienced substantial growth, rising 9% to nearly $41 billion over the same period. The company's recent partnership with Binance, the world's leading cryptocurrency exchange, is expected to further bolster USDC's adoption and usage.
Over the week, leading cryptocurrency exchange Binance and Circle partnered to boost USDC’s adoption. The partnership will see Circle’s USDC become more widely available to Binance’s 240 million users for trading, savings, and payments, and get adopted as its “vital dollar stablecoin” on its own corporate treasury.
Francisco Memoria is a content creator at CryptoCompare who’s in love with technology and focuses on helping people see the value digital currencies have. His work has been published in numerous reputable industry publications. Francisco holds various cryptocurrencies
