FLOKI surprises investors

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FLOKI faces significant price correction amidst a high burn rate

Key points:

• Floki's price dropped over 19% despite burning millions of tokens in a week.

• The high burn rate aims to make FLOKI deflationary, potentially increasing demand.

News - FLOKI, the popular memecoin, experienced a significant downturn in the past 24 hours, with its value plummeting by double-digits. Despite this setback, the blockchain continued its trend of burning a substantial number of tokens in recent days.

The exact details - The recent dip saw FLOKI's value drop by more than 19%, according to CoinMarketCap data, trading at $0.0001757 with a market capitalization exceeding $1.7 billion. Concurrently, social metrics surrounding FLOKI also witnessed a decline, with Santiment's data indicating a drop in social volume and a shift toward the bearish sentiment.

FLOKI is burning - However, amidst the market turmoil, FLOKI announced a remarkable feat via Twitter – the burning of tokens worth more than $770 million within a week. This burn, driven by strong demand in FLOKI's utility products, aimed to make FLOKI perpetually deflationary, distinguishing it from other meme coins like DOGE, PEPE, SHIB, BONK, and WIF.

What did the metrics say? Despite the positive implications of a high burn rate on demand and price, FLOKI faced complexities in its market dynamics. Santiment's analysis revealed a sharp decline in FLOKI's MVRV ratio and sporadic spikes in exchange inflow, indicating heightened selling pressure and hinting at potential further price drops.

MicroStrategy doubles down on Bitcoin with another $604M convertible note offering

Key points:

• MicroStrategy completed a $603.75 million convertible note offering to raise capital for Bitcoin purchases.

• Former CEO Michael Saylor announces the completion of the offering on 18 March.

News - MicroStrategy, a company known for its aggressive Bitcoin investment strategy, has completed another convertible note offering to further increase its Bitcoin holdings. This move follows a similar offering just days earlier.

Fresh capital for Bitcoin acquisition - MicroStrategy raised $603.75 million through the sale of convertible senior notes due 2031. The company plans to use the net proceeds, along with excess cash, to purchase additional Bitcoin.

This offering comes after MicroStrategy completed an $800 million convertible note offering on 8 March. Proceeds from that offering were used to acquire 12,000 Bitcoin.

Bitcoin bonanza - Just minutes after announcing the new offering, MicroStrategy revealed the purchase of an additional 9,245 Bitcoin. The average purchase price was $67,382 per Bitcoin, bringing their total holdings to 214,246 BTC.

This latest acquisition represents 1.02% of the total Bitcoin supply that will ever be mined. MicroStrategy's average purchase price across all acquisitions sits at $35,160 per Bitcoin.

FRONT’s rally cut short by profit-taking traders; token retraces from highs

Key points:

• FRONT token witnessed impressive gains followed by a sharp correction, reaching $3 before retracing to $2.55.

• Whale investors have been observed moving substantial FRONT holdings to exchanges.

News - Frontier (FRONT), a token powering a DeFi aggregation platform, experienced a wild ride this week. After a surge of over 40% in 24 hours, the token faced a correction as investors cashed in on profits.

Originating in late 2019, FRONT saw considerable success during the bullish market of 2021, reaching its peak of $3.79. Fast forward to March 2024, and FRONT is once again making waves in the market, having surged in value by 5x over the past month alone.

What’s more? Whale investors have been observed transferring a significant portion of their FRONT holdings to cryptocurrency exchanges. For example, according to Spot On Chain, one investor deposited 1.22 million FRONT tokens, valued at over $3 million, to Binance. Selling at this juncture would yield the whale a profit of 385% in just two months.

What does the price chart say? Examining FRONT's daily price chart, AMBCrypto discovered intriguing insights. The Relative Strength Index (RSI) indicated overbought conditions, suggesting the possibility of further declines. However, the Moving Average Convergence Divergence (MACD) indicator displayed a strong bullish signal, diverging significantly from the signal line.

UK's FCA to introduce market abuse regime to safeguard crypto investors

Key points:

• The UK's FCA is introducing a market abuse regime for crypto assets in 2024.

• This aims to protect consumers, ensure fair trading practices, and maintain market integrity.

News - The Financial Conduct Authority (FCA), the UK's main crypto regulator, is setting its sights on protecting consumers and ensuring market fairness in the digital asset space. Announced in its 2024-2025 business strategy, the FCA plans to implement a market abuse regime specifically for cryptocurrencies this year.

What are the priorities for the FCA?

• Safeguarding users from potential harm within the crypto market.

• Preventing manipulation and unfair trading practices in crypto assets.

• Establishing a regulatory framework that fosters innovation without compromising consumer safety.

What to expect?

• Building on last year's government consultation, the FCA is introducing a dedicated regime to tackle market abuse involving crypto assets.

• This regime will target individuals engaging in manipulative behavior with cryptocurrencies admitted to trading on UK crypto exchanges.

• The FCA expects crypto exchanges to actively identify and disrupt such activities.

Well, the FCA aims to recover roughly $7.9 million for establishing new regulations for Stablecoins and a wider crypto regime.

More stories from the crypto ecosystem

• Solana a better version of Ethereum? Arthur Hayes has this to say…

• Bitcoin’s price to cross $80K, but not in a ‘linear line’ – Binance CEO’s prediction

• Why GALA and BOME reacted differently after posting major gains

• Are AI tokens FET, RNDR set for another big rally?

• OP closes below $3.5 – Is sell season finally at its end?

Interesting facts

• Unlike traditional currencies, Bitcoin has a finite supply of 21 million coins that will ever be mined. This scarcity is a key factor in its perceived value.

• Blockchain technology, the underlying technology behind crypto, is finding applications in various industries like supply chain management and voting systems.

• Memecoins, like Dogecoin and Shiba Inu, have shown that social media hype and community can significantly influence crypto prices.

Top 3 coins of the day

Bitcoin (BTC)

Key points:

• Analysts predict that Bitcoin’s potential bull run in 2024 relies heavily on the Fed transitioning from a contractionary to an expansive monetary policy.

• The king coin has been facing healthy correction on its way upward.

What you should know - After crossing the $73,000 mark, Bitcoin has been facing corrections that traders expected for quite some time now. However, the bulls are building support at the $63,000 level. Several long positions have been liquidated already due to the selling pressure. Market momentum has been bearish in the short term, but a recovery can soon be expected. Leading technical indicator RSI highlighted the dominance of sellers, at press time. And investors are wondering if BTC will be able to surpass its all-time high of $73,755 before halving.

Solana (SOL)

Key points:

• Out of the top 10 coins, Solana saw bullish pressure on 19 March.

• SOL’s correlation with Bitcoin has remained strong for the majority of 2024.

What you should know - Solana has seen heightened network participation amidst the ongoing meme coin rally. While most of the cryptocurrencies were correcting, at the time of writing, SOL continued its upward trajectory. On losing support at $170, it can see a drop to $160 in no time. An analysis of Coinalyze metrics revealed that the Open Interest saw a decline from $2.3 billion to $2.05 billion from the 8th to the 10th of March. However, it has recovered since. Interestingly, in the past week, SOL saw an increase of 20.17% with bulls in the fore. Even so, the MACD indicator was heading for a bearish divergence, which can be expected in the coming days.

Polygon (MATIC)

Key points:

• MATIC’s Weighted Sentiment was in the negative zone, meaning bearish sentiment around the token was dominant.

• At press time, its net deposit on exchanges was low compared to the last seven days’ average.

What you should know - MATIC crossed a key resistance of $1 on 18 February, but this mark was soon turned into support and was tested multiple times. Consequently, the bullish momentum weakened and MATIC started falling on the price chart. In the last week, sellers have managed to outperform buyers by a significant margin. Following which, the coin was down 19.57% and was trading at $0.9469, during press time. The width of the Bollinger Bands (BB) hinted at the coin’s unprecedented volatility. Notably, after 9 March, the trading volume has been low - something that can be inferred from the reading of Volume Oscillator.