Wall Street giant MicroStrategy has scooped up another $10 million in bitcoin (BTC) during the latest dip to $29,000 a coin.
What Would Whales Do?
Say what you will about business regulation, it’s always nice to see what giant corporations are up to. MicroStrategy, which is obliged to report certain data about its business to the SEC, has bought another $10 million worth of bitcoin (BTC).
According to CEO Michael Saylor, the new 10 mil was purchased for an average of $31,808. The 8-K form Microstrategy filed for on Jan 22, 2021, says it bought about 314 more bitcoin.
Meanwhile, the impatient crypto world was rocked this week with a dive in the market. This is expected after parabolic rallies, but the cooldown naturally hit some nerves.
News has been mixed. Several outlets ran stories that Bitcoin was in trouble last week, despite good fundamentals. False attacks on the Bitcoin code and fears around Tether’s possible collapse also shook markets.
But like any patient investor who believes in their trades, the people at MicroStrategy saw the opportunity to buy bitcoin on sale. Cameron Winklevoss also chimed in, attacking negative news as being untrue and sensationalist.
Calm Before the Euphoric Storm?
While bitcoin did drop hundreds of billions of dollars and 25% from highs, the fundamentals remain strong. BlackRock, the world’s largest asset manager, may be interested in buying BTC, providing custody, or at least gaining exposure to derivatives.
The narrative at large also looks healthy. Social media has been starting to catch up to the hype within the community. Bitcoin has tested $30,000 a number of times now since reaching $40,000 but continues to hold.
Banks such as Morgan Stanely have increased their stakes in BTC (sometimes via MicroStrategy stock purchases). There’s also the popular idea that institutions are waiting for dips to step in and buy from weaker hands.
Supporting this notion was Willy Woo, who said on Twitter that large BTC holders are increasing their bags. This likely means the weak hands who can’t stomach the volatility are being shaken out as the big boys calmly hodl on for long-term growth prospects.
MicroStrategy, one of the first Wall Street firms to purchase bitcoin for its treasuries, seems to have gone all in. It now owns over $1.3 billion in bitcoin, and its stock price has doubled as a result.
Big money from institutional investors at key support levels is certainly a good sign for Bitcoin. Crypto is as volatile as ever, but Bitcoin has some serious legs to stand on.
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