KEYTAKEAWAYS
- Projects to Watch: Ethereum's PENDLE and SSV, Solana's BOME, PEPE, and WIF, and AI's TAO show potential in their respective sectors.
- Bitcoin Surge: BTC's rally and strong call option demand suggest a possible rise to $100,000, driven by economic factors and market confidence.
- MicroStrategy Catalysts: Institutional interest in Bitcoin ETFs and Ether ETF rejection could significantly enhance MicroStrategy's performance by year's end.
CONTENT
In the Crypto Pre-drink, we serve up a daily shot of the hottest crypto news and market insights to fuel your investment decisions.
PROJECTS TO WATCH THIS WEEK
Please use this as a reference point while forming your own opinions.
- ETH Ecosystem: PENDLE and SSV are worth considering. Both have strong backers.
- RWA Sector: ONDO, MKR, and TrueFi (TRU) stand out. ONDO has strong backing, MKR’s team is efficient, and TRU has solid market liquidity.
- Solana Ecosystem: BOME, PEPE, and WIF are stars among memecoins, consistently surging with market rebounds.
- BTC Ecosystem: Runes is intriguing, while Layer 2’s Merlin recently launched its token. Stacks (STX) and MERL have shown good recent performance.
- AI Sector: TAO leads the way, while PRIME is strong in computing power. RNDR and AKT are worth watching.
- Gaming Sector: Ronin (RON), Merit Circle (MC), and Immutable (IMX) are highly anticipated. Ronin games are booming, and Pixels Online is performing well. For gaming projects, consider both the player base and profitability.
BITCOIN REBOUND SPARKS BULLISH EXPECTATIONS FOR $100K
Bitcoin’s recent rally to $63,470 has sparked optimism among crypto options traders, who anticipate the cryptocurrency could reach $100,000 this year. This surge follows Federal Reserve Chairman Jerome Powell’s comments ruling out further interest rate hikes and weak U.S. jobs data supporting his stance.
Demand for Bitcoin call options targeting $70,000 to $100,000 has surged on Deribit and other trading platforms. Paradigm also reports rising interest in out-of-the-money calls, showing trader confidence in a continued price increase.
Analysts agree that the market favors further gains, citing strong support from U.S. election spending and a weakening dollar. John Glover of Ledn predicts a potential Bitcoin rise to $92,000, though a brief dip to $52,000-$55,000 might occur first.
MICROSTRATEGY STOCK POISED FOR GAINS AMID TWO BITCOIN CATALYSTS
MicroStrategy (MSTR) is expected to see “meaningfully higher” gains by year’s end, according to TD Cowen analyst Lance Vitanza. Despite reporting a Q1 net operating loss of $53.1 million due to a $191.6 million digital asset impairment, two Bitcoin catalysts could boost its value.
First, institutional investors must file form 13-F with the SEC by May 15, potentially revealing increased institutional adoption of recently approved Bitcoin exchange-traded funds. Second, the SEC is expected to reject an Ether ETF, potentially solidifying Bitcoin’s dominance due to the recent halving event.
With MicroStrategy’s stock up 89% this year and Bitcoin currently trading at $63,000, Vitanza believes these catalysts could further enhance MicroStrategy’s performance given its significant Bitcoin holdings.
