Michael Saylor Bought $980 Million in Bitcoin during the Coin’s Recent Slump
Strategy bought millions in Bitcoin recently but will that help the coin go bullish after weeks of bear movements?
Quick overview
- Strategy purchased over $980 million in Bitcoin despite a bearish market, acquiring more than ten thousand bitcoins recently.
- Michael Saylor's company funded the purchase through ATM equity and common share sales, standing out as many investors are selling off Bitcoin.
- Bitcoin has lost 2.34% in value over the last 24 hours and over 9% in the past month, with investor sentiment currently souring.
- The potential for Bitcoin to regain bullish momentum depends on upcoming positive economic data, otherwise it may remain under $100 through the end of the year.
Investors might be losing faith in Bitcoin (BTC) after weeks of bearish movement, but Strategy purchased more than $980 million in Bitcoin recently.
Michael Saylor’s Strategy (formerly MicroStrategy) bought up more than ten thousand bitcoins between December 8th and December 14th. During this period, Bitcoin wavered between $94K and $88K.
BTC/USDThe company funded their purchase by using ATM (at-the-market) equity and though sales of common shares. Their massive whale purchase stands out at a time when many investors are dumping Bitcoin and are tired of waiting for the coin to go bullish again.
BTC Price Prediction after Strategy Move
Strategy, and by extension Saylor, has become a major mover for the cryptocurrency industry. As Saylor has used Strategy to buy up massive amounts of Bitcoin over the years, his purchases and his investment advice have moved the industry. Investors pay attention to what Strategy is doing, and when the company is willing to put so much of the money into a purchase like this, they have the potential to inspire confidence in Bitcoin. Of course, if Saylor can get investors to back Bitcoin now, then his company’s purchase will explode in value.
Bitcoin has lost 2.34% of its value over the last 24 hours, and more than 9% over the last month. The trend we are seeing in recent weeks is that every time the coin starts to make some upward progress, it is knocked back down again. Right now, it looks like Strategy’s whale move is not making an impact on the coin.
There could be too many factors working against Bitcoin at the moment. The coin has been bearish for a while, and investor sentiment is souring on the crypto market. Bitcoin has also been underperforming compared to some of the other leading crypto tokens in recent weeks. Furthermore, investor interest has shifted to the stock market where stock indices have been posting near record highs over the past couple of months.
Bitcoin simply has too much working against it right now to regain bullish momentum on a single investors’ whale purchases. However, if this week’s economic data is positive, and the economic outlook starts to appear better, Bitcoin and the wider crypto market may start to surge. Then, Strategy’s move will look like a smart one. If that does not happen, though, we expect Bitcoin to remain under $100 through the end of the year.
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