Bitcoin Cash no longer a top-10 cryptocurrency after being hounded out by Dogecoin

Bitcoin Cash no longer a top-10 cryptocurrency after being hounded out by Dogecoin

Together with Stellar, Dogecoin passes Bitcoin Cash by market cap and leaves the struggling altcoin in 12th place.

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The fortunes of beleaguered Bitcoin (BTC) spin-off Bitcoin Cash (BCH) took a turn for the worse on Feb. 8 as it was chased out of the top ten cryptocurrencies — by Dogecoin (DOGE).

Data from Cointelegraph Markets and CoinMarketCap showed BCH now occupying 12th place after being passed by both DOGE and Stellar (XLM).

BCH kicked out of the top ten

The latest embarrassment for the altcoin, which last week lost its footing to Binance Coin (BNB) and in January was superseded by Chainlink (LINK), thus relegates it from the top ten cryptocurrencies by market cap.

At the time of writing, BCH had a market cap of $8.48 billion, behind Stellar’s $8.63 billion and DOGE’s $9.59 billion, the latter having risen 25% in the past 24 hours.

While Bitcoin itself has gone from strength to strength, BCH has yet to see any real benefits beyond the occasion commitment from figures such as Kim Dotcom. The altcoin’s proponents tout it as a superior alternative to Bitcoin thanks to its faster and cheaper transactions.

„I joined team BCH early January. This is just the beginning,“ Dotcom promised in a recent tweet.

BCH/USD 1-week candle chart (Coinbase). Source: TradingView

DOGE rebound sees criticism

DOGE had seen a boost on Monday thanks to a fresh endorsement from rapper Snoop Dogg and Elon Musk, who delivered yet another tongue-in-cheek tweet about his alleged fondness for the coin. In an interview last week, Musk had already confirmed that he was a Bitcoin „supporter.“

„Doge appears to be inflationary, but is not meaningfully so (fixed # of coins per unit time), whereas BTC is arguably deflationary to a fault,“ he wrote.

„Transaction speed of Doge should ideally be a few orders of magnitude faster.“

DOGE/USD 1-day candle chart (Bittrex). Source: TradingView

His publicity struck a nerve with some. Saifedean Ammous, author of „The Bitcoin Standard,“ decried the practice of promoting a cryptocurrency which openly has no function to unwitting potential investors.

„Wow such genius humor!! Incredible intelligence is needed to appreciate the genius of promoting a scam to 40 million followers,“ he responded.


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Together with Stellar, Dogecoin passes Bitcoin Cash by market cap and leaves the struggling altcoin in 12th place.

Thanks Bitcoin, MicroStrategy stock is up 113% since being downgraded by Citigroup

Thanks Bitcoin, MicroStrategy stock is up 113% since being downgraded by Citigroup

MSTR stock has surged by roughly 113% since Dec. 8 when it was downgraded by a Citigroup analyst.

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On Dec. 8, 2020, Citigroup, one of the largest banks in the world, downgraded MicroStrategy’ss stock (MSTR). Since then, MSTR stock is up 113.27% from $289.45 to $617.31, as the price of Bitcoin (BTC) rallied.

In the same period, the Citigroup stock has declined slightly by 0.63%, from $58.36 to $57.99.

MicroStrategy stock vs. BTC and Nasdaq. Source: ecoinmetrics

Why has MicroStrategy stock performed so strongly despite the downgrade?

MicroStrategy has been investing its treasury holdings in Bitcoin, making BTC is treasury reserve asset. Currently, it is the biggest public company holder with over 70K BTC worth roughly $2.4 billion at today’s prices. 

Moreover, on Dec. 9, 2020, MicroStrategy announced raising $550 million in capital from convertible bonds.

In an official statement, MicroStrategy explicitly said that it intends to invest in Bitcoin with the proceeds of the bond. This is also the statement that is said to have triggered Citi to downgrade MicroStrategy. The statement read:

“MicroStrategy intends to invest the net proceeds from the sale of the notes in bitcoin in accordance with its Treasury Reserve Policy pending the identification of working capital needs and other general corporate purposes.”

At the time, Citigroup analyst Tyler Radke issued a sell rating. He acknowledged that the return on MicroStrategy’s Bitcoin investment has been “impressive,” but said the market is overpricing the core business of the firm. He wrote:

“MSTR’s bitcoin investment has returned $250M (or worth $26/share or +20% towards stock) since August ’20. While impressive, it pales in comparison to the 172% return in the stock. At the current stock price, our analysis suggests that the market is pricing in much more optimistic valuation scenarios for the core business and Bitcoin.”

Since December 2020, however, the price of Bitcoin saw an explosive rally. While the skepticism toward the core business of MicroStrategy could have some merit, BTC saw a rally of over 100% in the last month of the year.

In just December, Bitcoin rallied from $18,319 to over $42,000 on Binance, outperforming most assets in both the stock market and the crypto market.

What’s next?

MicroStrategy remains an important multi-billion dollar business intelligence firm with strong core business.

But as long as the price of Bitcoin continues to increase in the near term, it will likely have a positive impact on the stock price of MSTR.

Michael Saylor, the CEO of MicroStrategy, remains fully confident in the company’s position on Bitcoin, and often buying the price dips. In the fourth quarter financial results for 2020, Saylor wrote:

“Going forward, we continue to plan to hold our bitcoin and invest additional excess cash flows in bitcoin. Additionally, we will explore various approaches to acquire additional bitcoin as part of our overall corporate strategy.”