MicroStrategy Buys Bitcoin Dip With $243 Million
MicroStrategy has reached a significant milestone in its Bitcoin holdings after taking advantage of a price dip with a $243 million investment.
The company’s Bitcoin holdings now exceed 450,000 BTC, acquired for a total of $28.2 billion at an average price of $62,691.
The milestone follows MicroStrategy's recent purchase of $243 million worth of Bitcoin at an average price of $95,972, as announced by founder and chairman Michael Saylor in a Jan. 13 post on X.
The acquisition occurred during a nearly weeklong correction when Bitcoin traded below the $100,000 psychological level starting Jan. 7, according to TradingView data.
Crypto hedge funds also capitalized on the dip, contributing to Bitcoin exchange reserves hitting a near seven-year low on Jan. 13.
This decreasing supply on exchanges may indicate a potential price rally fueled by a "supply shock," where robust demand meets a shrinking BTC supply, leading to price appreciation.
Bitcoin had previously reached a record high of $100,000 on Dec. 6, 2024, a month after Donald Trump’s victory in the 2024 US presidential election.
However, Bybit Research noted that markets have already factored in the positive effects of the incoming Trump administration, leaving them “vulnerable to macro drivers.” According to their analysis:
“Bitcoin and crypto have reverted to being reactive to macroeconomic news at the end of 2024 and beginning of 2025, particularly the slower pace of rate cuts anticipated by the Fed in the new year.”
Bitcoin's dip below $92,000 was largely attributed to stronger-than-expected data from the Job Openings and Labor Turnover Survey (JOLTS) on Jan. 9, which “reiterated the strength of the US labor market,” Bybit researchers added.
Macroeconomic concerns are also cited by other analysts as the main factor behind Bitcoin’s decline.
Bitget Research’s chief analyst Ryan Lee told Cointelegraph:
“Bitcoin’s dip stems primarily from strong US economic data pointing toward potential interest rate hikes. This development makes cryptocurrencies less attractive as investments…”
Signs of economic resilience have postponed expectations for a Federal Reserve rate cut, with the CME Group’s FedWatch tool projecting the first lending rate cut to occur on July 30.
Despite concerns over interest rates, other firms are also seizing the opportunity to buy Bitcoin during the dip.
On Jan. 13, Nasdaq-listed Semler Scientific announced the purchase of 237 BTC worth $23.3 million at an average price of $98,267.
Sources:
https://cointelegraph.com/news/microstrategy-bitcoin-dip-holdings-450k-btc
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