digital asset
March 01, 2024
7 min read

DigitalX Weekly Crypto Update: Market Trends and Analysis

16-23 February 2024

This week's latest trends and insights in the digital asset market from our asset management team.

Market Commentary

A stellar way to end the week and the month – Bitcoin hit an all-time high in Australian dollars (and in currencies of at least 14 other countries). Spot Bitcoin ETFs are accumulating up to ~2,800 Bitcoin each day whilst only 900 are produced; and with the upcoming halving (expected in late April) the amount of Bitcoin produced daily will halve. Spot Bitcoin ETFs also broke their daily trading volume record this week with more than US$6 billion trading on Wednesday; this beat the volume record previously set on the ETF’s launch day. The increased volume of the products is piquing the interest of many asset allocators.

MicroStrategy’s Bitcoin portfolio briefly exceeded US$12 billion in value, the highest since the firm began buying Bitcoin in 2020. MicroStrategy’s total Bitcoin holdings reached 193,000 after buying another 3,000 BTC worth US$155 million on February 26; this follows a purchase of 850 BTC for US$37.2 million in the previous month. As of 27 December, 2023, the average Bitcoin purchase price for the firm’s holdings stood at US $31,170 per Bitcoin.

CEO Comment

The Gap between Bitcoin and the S&P 500 has sharply dropped to 17% this week, narrowed down from 29% last week. This is a significant jump and the lowest we have seen since tracking it from the 2022 lows which was 66%. The reason for this is probably the most significant as outside of normal market options expiries etc., we have an increase in real, persistent, consistent if not relentless net buying from the new US ETF’s. All-time highs may lead to some higher volumes for the time being, however if we continue along the current trend Bitcoin may break through ATH’s quite quickly, with its next level potentially being US$100,000.

As for the shift list, which we define as the major events and announcements facilitating the broader market’s transition to Web3 financial rails or the internet of value, the top shifts for this week include:

  • ETF’s still making headlines – with recent average daily buying volumes of ~2,800 Bitcoin each day whilst only 900 are produced.
  • This Mirco-strategy trade of US$155 million in one clip, was a big trade in the market we observed as potentially taking out significant supply. Why is this a shift? MicroStrategy is now the 477th largest company in America, overtaking United Airlines.

Our Top “alts shifts” for this week, featuring shifts in our altcoin universe that drive our thematic approach, saw the second gap, or the broader digital asset market, remain flat at circa 60%. There is a big opportunity here, as we see this as a selective opportunity to identify and grow our alts portfolio via our “alThematics” work. 

  • As previously mentioned in our AltThematic push we expanded our modular blockchain strategy investing in – the big story in this space, as the second gap continues to close, is the increase in airdrop opportunities with the current narrative surrounding EigenLayer gaining momentum this week. Interestingly this is ETH based, so it could act as an increased source of demand for ETH going forward.
  • Chainlink offers exposure to RWAT infrastructure and now they have found a way to make themselves relevant for ETFs too! Ark and 21Shares are to disclose spot Bitcoin ETF reserves via Chainlink integration.

What are our favourite thematics for 2024? We continue to like any infrastructure plays of the shift from Web2 to Web3 financial rails and any plays in the real-world asset tokenisation infrastructure, data validation and decentralised storage, as well as scale-up technologies such as ZKrollups. We are closely following all the ”de’s” – DeFi, DePin, DeSoc – (want to know what that means? – message us). 

Lisa Wade, CEO DigitalX



*All figures throughout are in USD unless otherwise specified


Market Updates

The Shift List

Macro and Regulatory Environment

About DigitalX

DigitalX Ltd (ASX:DCC) is a leading ASX-Listed Bitcoin and digital asset funds management business. The Company has a 9 year track record mining Bitcoin, blockchain and smart contract development. DigitalX Asset Management is the investment manager of digital asset investment products that provide qualified investors with highly secure and streamlined access to digital asset exposure. To learn more contact the team at [email protected] or visit our website


DigitalX Asset Management Pty Ltd is a corporate authorised representative (CAR) of Boutique Capital Pty Ltd (AFSL 508011), and True Oak Investments Ltd (AFSL 238184). To the extent to which this document contains advice it is general advice only and has been prepared by the CAR for individuals identified as wholesale investors for the purposes of providing a financial product or financial service. The information herein is presented in summary form and is therefore subject to qualification and further explanation. The information in this document is not intended to be relied upon as advice to investors or potential investors and has been prepared without taking into account personal investment objectives, financial circumstances or particular needs. Recipients of this document are advised to consult their own professional advisers about legal, tax, financial or other matters relevant to the suitability of this information. Past performance is not indicative of future performance.

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