As a researcher with a background in finance and experience in following the cryptocurrency market closely, I find MicroStrategy’s latest Bitcoin acquisition to be an encouraging sign for the digital asset class. The company’s significant investment further cements its position as a major institutional holder of Bitcoin, which could potentially attract more institutional investors to follow suit.
Bitcoin, the foremost cryptocurrency, has rebounded after hitting a weekly low of $64,000, now trading above $65,000. This price rise may be attributed to another substantial investment from MicroStrategy, a business intelligence firm, spearheaded by Bitcoin advocate Michael Saylor, potentially halting the recent downward trend.
On Thursdays announcement, the firm revealed it had bought an extra 11,931 Bitcoins worth around $786 million, strengthening its status as a significant Bitcoin owner among institutional investors.
MicroStrategy’s Bitcoin Holdings Surge To Nearly $15 Billion
Michael Saylor, the Chairman and Co-founder of MicroStrategy, announced in a social media update their recent Bitcoin acquisition: a total of 11,931 Bitcoin were bought between April 27 and June 19. This purchase was funded using the proceeds from convertible notes and surplus cash, with an average price of $65,883 per Bitcoin.
Significantly, MicroStrategy’s Bitcoin collection has grown to a substantial 226,331 coins following recent purchases, amounting to a total investment of around $8.3 billion. The current market value of this hoard stands at roughly $14.9 billion.
Saylor developed an interest in Bitcoin towards the end of 2020, seeing it as a protective measure against inflation and a viable option instead of keeping money in cash. Since then, this digital currency has witnessed remarkable growth, approximately tripling in value from when Saylor first invested.
At present, MicroStrategy’s latest acquisition occurs amidst ambiguous investor feelings towards Bitcoin. According to market analysis firm Santiment, the public sentiment towards Bitcoin is predominantly fearful or indifferent as its price fluctuates around $64,000 and $65,000.
Santiment proposes that among the reasons for Bitcoin’s price rebounds are trader exhaustion and significant purchases by whales, such as MicroStrategy’s recent acquisition. These events can bring about price increases that benefit those who remain patient.
BTC’s Cycle Top To Reach New Heights
Although there’s ongoing debate about Bitcoin’s market direction, many industry experts and analysts predict that its price will reach new highs beyond the current record before a cycle top occurs. Market observer Crypto Con employed Fibonacci retracements to calculate both moderate and aggressive potential peak levels for this digital currency.
Based on Crypto Con’s assessment, the 0.618 Fibonacci retracement level has consistently marked the peaks of Bitcoin’s previous price cycles. By measuring the distance between the cycle low and high of the initial trend, we can identify extension levels. The price peaks in 2013 and 2017 were estimated to be around 4.618, while the projected peak for 2021 is at approximately 5.618.
According to Crypto Con’s analysis for this market cycle, the more cautious forecast for the peak price is $106,000, whereas the more aggressive projection reaches $161,000.
In alignment with the optimistic outlook, wealth management company Bernstein has put forth ambitious estimates regarding Bitcoin’s future price trend. Contrary to the bearish perspective that the Bitcoin ETF market has peaked and initial investments were primarily retail-driven, Bernstein presents a contrasting opinion.
Major wirehouses and large private banks are expected to give the green light to Bitcoin ETFs in the latter part of this year, potentially during the third or fourth quarter. This approval process, coupled with increasing institutional interest, could significantly boost the adoption of Bitcoin.
As a researcher studying the trends in Bitcoin’s market value, I believe Bernstein forecasts that Bitcoin will hit a peak of around $200,000 by 2025, and this number could climb to $500,000 by 2029. By 2033, the cryptocurrency might even reach an impressive milestone of $1 million. Institutional investors are showing increased interest in Bitcoin, as evidenced by their consideration of “net long” positions.
Currently, Bitcoin has kept its declines within a 3.6% range over the past week, bringing its price to $65,170 as the leading cryptocurrency in the market.
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2024-06-20 22:16