Who’s on the wave? BTC bulls or bears?
The world of Bitcoin (BTC) is currently going through a very interesting period. On the one hand, we have negative news here from China, which, in addition to fundamentally tightening conditions for miners, has also pressured banks to put pressure on the crypto-related business. According to the published information, they should directly discourage their clients from crypto payments and also report transactions related to cryptocurrency exchanges and over-the-counter trading of cryptocurrencies.
Businessman with red cloth and big bull shadow, Source: shutterstock.com
On the other hand, Bitcoin fans can also enjoy a lot of positive news. Probably the most discussed is the adoption of BTC as a legal currency in El Salvador, which is likely to be followed soon by other countries. It is certainly worth mentioning the recent update of the BTC protocol known as Taproot, which we reported on in a separate article. We certainly consider the current news about the recent large purchase of Bitcoin by MicroStrategy as a bullish signal also.
The market is reacting rather embarrassingly to this mix of news, and it does not yet seem clear which direction BTC will take in the near future. Almost immediately after the “Chinese” news, its price dropped to about $ 31,000 and rose slightly after today’s tweet of MicroStrategy CEO Michael Saylor, hovering just over $ 32,500 at the time of writing.
The best investors know how to take full advantage of the bad mood in the market and the panic of retail when shopping
The mentioned drop in the price of Bitcoin was obviously a good signal for MicroStrategy to buy more. The company announced that it had purchased an additional 13,005 BTC for an average price of $ 37,617. Together, they invested nearly half a billion dollars in BTC in this purchase. The whole trade, of course, took place through the OTC market, so the price of BTC reacted with a slight increase only after the publication of the report. MicroStrategy currently owns 105,085 BTC worth a total of almost $ 3 billion.
The company’s confidence in the positive future of the largest cryptocurrency is more than obvious. For the last purchase, they borrowed money from their investors by issuing bonds worth half a billion. According to the original plan, it was supposed to be $ 400 million, but in the end, they decided to increase by another $ 100 million. MicroStrategy has thus become Bitcoin’s largest known institutional hodler, leaving others such as Tesla and Square far behind in the dust.
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