Key points to remember
- MicroStrategy bought around $ 1 billion worth of Bitcoin (19,500 BTC), following its own previous purchases.
- The move comes after Square Inc. revealed its own purchase of an additional $ 170 million of Bitcoin.
- The growing upward pressure behind Bitcoin may soon be reflected in prices despite an impending supply barrier.
Share this article
While over-leveraged traders get crushed By Bitcoin’s volatility, it seems institutional investors are taking advantage of every drop to add more BTC to their holdings.
MicroStrategy buys the Bitcoin Dip
MicroStrategy announced on February 24 that he had bought 19,452 BTC for about $ 1 billion in cash at an average price of $ 52,765 per token. This brings his total balance sheet to 90,531 BTC, with those funds acquired at an average of $ 23,985 per coin.
Michael Saylor, CEO of MicroStrategy commented on the purchase. “The company now holds over 90,000 Bitcoins, reaffirming our belief that Bitcoin, as the world’s most widely adopted cryptocurrency, can serve as a reliable store of value,” says Saylor.
He added that the company will continue to “[acquire] Bitcoin with excess cash ‘and raise capital to buy Bitcoin.
The purchase comes after Square Inc. published its annual earnings report, revealing a $ 170 million purchase of Bitcoin at an average price of $ 51,235. The financial services company now owns 8,807 BTC, bought at an average price of $ 25,000 per token.
Steep resistance ahead
Since these large purchases by institutional investors tend to be made as over-the-counter transactions, the impact on Bitcoin prices could be delayed. But if buying pressure continues to mount, Bitcoin could recover quickly after the correction and walking to new unprecedented heights.
IntoTheBlock’s In / Out of the Money Around Price (IOMAP) model reveals that Bitcoin must break through a rigid supply barrier. Indeed, nearly 600,000 addresses have already purchased around 370,000 BTC at prices between $ 52,800 and $ 54,200.
Such a large area of interest may have the capacity to absorb some of the buying pressure seen recently. Holders who have been underwater may try to retract their positions, thereby slowing the uptrend. But if Bitcoin can get past this hurdle, it would likely resume its parabolic lead.
The IOMAP cohorts also show that Bitcoin is at the top of a stable support. Over 600,000 addresses bought around 400,000 BTC between $ 48,500 and $ 50,000. This critical barrier to demand must continue to exist to avoid a steeper drop to $ 40,000.
Disclosure: At the time of writing, this author owns Bitcoin and Ethereum.
Laser Eyes Trend Crypto Storm Twitter for $ 100,000 BTC
Bitcoin supporters, including CEOs and politicians, have changed their Twitter profile pictures to display laser eyes as a way to celebrate BTC’s growth. Celebrate Bitcoin benchmarks like Mutants The Chairforce and …
Bitcoin Needs To Hold Above Critical Support To Avoid A Drop To $ 40,000
Bitcoin has shaken many weak hands in the market following the latest correction. Although a short recovery. is on the cards, bears abound. Bitcoin Ready to Bounce The flagship product …
Bitcoin Dip Causes $ 6.5 Billion In Liquidations As Analysts See L …
Bitcoin’s roller coaster ride slowed on Monday as BTC fell 18% to a low of $ 46,700 on Coinbase, causing rampant sell-offs in derivatives markets. The Top Bitcoin Debate A Huge $ 11,000 …