In that report, we argued that MUBI was undervalued at its $0.20 trading price. We also offered guidance on accumulating spot bags between $0.20 and $0.17.
MUBI then underwent a bearish trend in early January, dropping to a low of $0.13 on January 8.
This decline brought MUBI's price well below our recommended entry range of $0.20 to $0.17, presenting an unexpected opportunity to buy the dip.
If you followed our guidance from December, you would have bought the token at a discount.
But whether you’ve got a MUBI bag or not, it might interest you to know that Smart Money isn’t slowing down on this asset.
But why is Smart Money betting on MUBI with renewed vigour?
Let’s dive in.
Disclaimer: Not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results. “One Glance” by Cryptonary sometimes uses the RR trading tool to help you quickly understand our analysis. They are not signals, and they are not financial advice.
Smart Money wallets love MUBI
In the last 24 hours, nine Smart Money wallets have bought between $85k and $246k worth of MUBI, based on the most recent on-chain data.
This buying pressure has contributed to the price rally that we observed today.
The largest individual buyer, wallet 0xF7C55, acquired 1.185 million MUBI at an average price of $0.20, totalling $245,000 at the time of writing. MUBI has now become the largest holding in his portfolio, valued at $832,510.54.
We looked at Nansen's Smart Money dashboard and observed similarly positive data.
For starters, MUBI got a net inflow of $1.1 million from Smart Money wallets in the last 24 hours.
This is also reflected in the data showing how many Smart Money wallets hold MUBI.
After heavy profit-taking by early investors who bought in November and early December, the number of wallets holding MUBI has stabilised, with 54 wallets holding 30 million MUBI, valued at $6.42m.
Another interesting point is that on Chain Edge, MUBI is one of the tokens with the largest Smart Money holdings - currently, 24 unique Smart Money wallets hold MUBI.
Catalysts making MUBI attractive to Smart Money investors
So, why is Smart Money consistently attracted to MUBI?Well, we found several catalysts driving up the bullish sentiment around the token, but they all go back to the fact that the MultiBit team has been working very hard.
On January 7, they made their first major announcement, unveiling their NFT Bridge. This bridge allows users to transfer NFTs across different networks. It effectively connects Bitcoin with the world of Ethereum NFTs.
This NFT bridge announcement was followed by a partnership with Sleepless AI, a blockchain-based virtual companion game backed by Binance.
Sleepless AI chose MultiBit as the bridge to facilitate the transfer of NFTs from the BNB Chain to Bitcoin. This partnership is a positive initial sign of adoption for Multibit’s new product.
But MultiBit's work didn't stop there. The launch of the NFT bridge was followed by yet another announcement that MultiBit now supports bridging BRC20 tokens to Solana.
Given Solana's growth and rising popularity, the community received this development positively.
Multibit's next step on Solana involves migrating some of its staking programs to Solana and the BNB Chain, enabling tokens on these networks to also participate in these programs.
Another benefit of this launch is that the project decided to bridge its token to Solana. Now, MUBI can be acquired on Solana, saving users the gas fees typically incurred when buying the Ethereum token.
There’s more!
The most recent major announcement is that Multibit has become the official bridge partner of SatoshiVM, a Bitcoin ZK Rollup Layer 2 solution with native BTC as gas.This partnership will allow new projects under the inscription/BRC20 category to easily bridge assets from Bitcoin to SatoshiVM and enable users to move between these chains seamlessly.
Given the work that has been accomplished in just the first month of the year, it seems that Multibit has captured the attention of Smart Money and recovered from its rough start.
While the partnerships already announced are impressive, Multibit might have another ace rolled up its sleeves.
Long story short, Binance seems to have its searchlights focused on Multibit. Binance Research included the project in its 2024 report.
This inclusion is particularly noteworthy because Binance Research has a bullish stance on BRC-20 tokens as a key trend for 2024. This likely also spurred new demand for MUBI, as the research targets institutions and high-net-worth individuals who trade on Binance
Another factor that has particularly sparked interest in MUBI today is a post shared within the Asian crypto community. It suggests that $MUBI is being integrated into the Binance wallet for BRC20 swaps/inscriptions based on someone's inspection of the codebase. While this suggestion remains speculative, it has been a major driving force behind the positive price action over the week.
Cryptonary's take
In 2023, speculation existed about a potential listing on Binance, driven by the strong connection between MUBI and the exchange.With Binance featuring MUBI in its research, Multibit collaborating with a Binance-backed project, and MUBI making appearances in Binance's codebase, the possibility of an exchange listing remains on the horizon, albeit with uncertain timing.
From our perspective, MUBI offers a unique opportunity to tap into the potential of BRC-20 tokens and inscriptions on Bitcoin and the broader ecosystem developing around Bitcoin's Layer 2 solutions.
Multibit's role as a bridge positions it as a key player within this space. With the anticipation of revenue sharing and the potential for a big exchange listing later this year, we believe MUBI remains undervalued at its current $0.20 price point.
Our outlook is optimistic, with a base case target of $0.50 and a bullish scenario of $1. We plan to delve deeper into these valuation targets in a future in-depth analysis.
Bringing it all together, Multibit is making significant strides as we enter the new year. The project has been anything but idle, forging strong partnerships within the Bitcoin ecosystem and beyond.
The influx of Smart Money, evident in on-chain data and influential wallet activity, reflects a growing confidence in MUBI's potential. We will keep our eyes on this project.
Cryptonary OUT!
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