MicroStrategy’s engagement with Bitcoin serves as the cornerstone for institutional exposure to cryptocurrency. The company’s unrealized profit just crossed the $6.2 billion threshold. The purchasing method used by MicroStrategy may appear arbitrary and even outdated, yet it is based on reason.
The business has made strategic acquisitions to steadily grow its Bitcoin holdings. Timing the market to maximise entry points and making large investments during price reductions are characteristics of these purchasing methods.
The accumulation areas indicated on the performance chart of MicroStrategy’s portfolio serve as an example of how their acquisitions frequently align with market declines. These calculated purchases have resemblance to the well-known dollar-cost averaging approach, in which investors gradually raise their holdings in response to declining asset prices, therefore averaging the dollar cost of their position.
The market has often been regarded as being driven by MicroStrategy’s active purchasing technique. Their significant market inflows frequently improve the mood of the Bitcoin market, having an impact on the entire ecosystem. By steadily building up its Bitcoin holdings, MicroStrategy strengthens both its portfolio and Bitcoin’s standing in the market.
Bitcoin’s price performance
Examining the price chart of Bitcoin, we can observe resistance accumulating around approximately $65,000, a level at which the upward impetus has encountered difficulties. Potential for more development exists if this barrier is broken, maybe aiming for the next resistance level around $68,000. However, support looks solid at $600,000, a level that has historically been used as a launching pad for price rallies.
Fresh inflows might push Bitcoin over present barrier levels if MicroStrategy keeps with its purchasing binge. Any significant acquisition by the business usually occurs in tandem with elevated investor confidence and sentiment—two things that Bitcoin desperately needs right now.
